Did you know 83 percent of Indian customers prefer COD (Nielsen’s Global Connected Commerce Survey) for their online purchases? Yes, that’s certainly a surprise in the contemporary age of digital payments but surely holds a solid ground. Put simply, Cash-On-Delivery payment facility makes virtual shopping more trustworthy for shoppers, thereby pulling in more customers and higher sales for online sellers.
Virtual shopping and e-commerce stores have made shopping a breeze. From books to electronics to apparel to home appliances to even groceries, you can buy anything and everything through online shopping from the comfort of your home. But, here comes a glitch. Unlike offline shopping, online shopping doesn’t offer the privilege to touch and feel your purchase immediately while shopping it. You cannot check the smoothness of a chosen Pashmina shawl or the operation of a new smartphone when you but it online. And when you can’t examine your purchase right when you are buying it, it raises concerns.
Even the most frequent online shopper would admit to having order anxiety especially when it comes to pricey orders and more so when they have been paid virtually. Add on to it the alarming rise in unscrupulous online shopping frauds which are leading people to frequent WISMO calls.
A stress-free shopping ambience is crucial for the Indian online stores to survive, scale up and sustain in the market. This is where the COD payment method serves as the much needed messiah to assure customers of a safe shopping environment. No, Cash-On-Delivery won’t allow customers to touch or feel their purchase right at the time of shopping just as is viable with offline shopping. But at least, COD reduces shoppers’ anxiety by assuring they don’t have to pay before they receive the delivery.
COD stands as the acronym for “Cash On Delivery”. It can be defined as a convenient payment method where a virtual shopper only makes the payment when s/he receives the parcel. Thus, COD is also referred to as “Cash-On-Demand” or “Collect-On-Delivery”. In other words, with COD, online shoppers don’t have to pay in advance.
First things first, the concept of COD ain’t anything new. It has had been in practice across the world with the introduction of mail deliveries. The first ever COD parcels were recorded in 1857 in Germany when Germans started buying stuff from their neighboring land of Austria.
Cut back to modern times, COD comes with a new dimension altogether. You will primarily find it with online e-commerce stores- including both types of stores that cater only to national citizens and both national and international ones.
It all boils down to one simple question- why would your online store allow COD payments. In one line the answer is- Your customers want it.
We have already mentioned about the huge proportion of Indian online shoppers voting for COD for virtual shopping. The Nielsen’s survey also revealed two other key percentages in this regard. One, 72 percent online shoppers from major Indian cities have given preference to Cash-On-Delivery payment for online shopping. Two, 90 percent customers from smaller Indian towns have stressed on choosing COD as their favorite payment mode (for online shopping) over advance payments.
If you have been thinking digital payments have been ruling the roost for online stores in the country, think again. As per the survey, modern payment options like net banking, card payments as well as online wallets only make a humble 30 percent of all payments made at online stores in India.
Well, you have a long list of reasons here:
On the other hand, COD facility at your store would help you to earn the trust of your potential shoppers. The primary reason behind it is you are not compelling them to make any upfront payment here. In other words, you are offering your customers the liberty to pay online after receiving and checking the product physically-even when they have bought from an online store. With COD, shoppers might not even choose to pay if the product delivered doesn’t match the claims of the online store during purchase. Thus, there is no risk of money loss here which is otherwise not uncommon with digital payments made in advance.
So, by offering COD, you are assuring your shoppers that you care for them and won’t let them waste their hard-earned money on futile purchases. This simple ethos on part of your online store would inspire customers to bank on you big time.
COD payment facility allows your online store to ensure safe payment activity for shoppers. This is one of the major parameters customers look for while choosing an online store.
Unlike digital payments made in advance, COD doesn’t ask a shopper to divulge his/her fiscal details which might otherwise be preyed upon by hackers. So, with COD payment, your shoppers are at a lesser risk of being targeted upon by virtual scammers than they are with upfront advance payments. And that definitely scales up their trust quotient about your online store.
And such a conducive shopping environ only inspires more shopping activities in shoppers, much to the pleasure of your online store.
So, yes, COD facility is a must for your Indian online store simply because your Indian shoppers prefer it and for all the right reasons. You can set up the payment method manually on the payment page or through an app.
But, then the easy shopping ambience assured by COD facility has sometimes been exploited by some fraudulent shoppers. Some online stores have faced huge monetary loss with COD payment-based orders which ended with wishful order cancellation on part of some unscrupulous customers. In fact, sometimes the address given by the shopper (opting for COD) came out to be fake or incomplete and hence the order could not be delivered and payment could not be collected. Such an unsavoury situation would mean a huge blow for the seller because despite the cancellation he had to pay the courier and other services that form part of the shipping process.
On average, virtual stores have reported to encounter 30% RTO (Return To Origin) rate on orders placed. But then, you should not let such numbers deter you from installing COD in your online store – you can easily prevent such blows and fool-proof orders with special apps. Let’s see how these apps will help you-
The bottomline is, COD payment facility is not free from glitches but its solid advantages far outweigh those minor concerns.Next PostPrevious Post