The benefits of Cash on Delivery for merchants and their customers
If you’re an online merchant who wants to sell products to Filipino customers, then you should be aware of how important Cash on Delivery (CoD) is in the Philippines. Even with the acceleration of digital acceptance and reliance on online payments, CoD remains to be one of the preferred payment methods in the country. Aside from this, Cash on Delivery has a number of benefits for local and international merchants, as well as their customers. Here are a few examples:
Benefits of CoD for merchants
Creates a wider customer reach
Millions of Filipinos remain unbanked, and if you opt to only offer online payments to your customers, you’re discouraging these Filipinos from making a purchase with you. This limits your customer reach, which means you’re losing the opportunity to make more sales and find potential customers.
By providing Cash on Delivery, you can attract customers who prefer CoD as a payment method. Reasons for this may be because they don’t have a bank account, they aren’t as knowledgeable in e-payments, or they are more complacent with the ‘traditional’ way of paying for online orders.
Gives customers flexibility
Just because a customer has a debit or credit card, doesn’t mean that he or she will always opt to pay every purchase with it. Similarly, offering CoD doesn’t ensure that most of your customers will always pay with cash. Offering CoD means that your business acknowledges how payment option preferences aren’t set in stone — it varies from purchase to purchase.
One of Cash on Delivery’s benefits is that it lets your customers be flexible with how they pay for each order. It’s not about which payment method is better; it’s about catering to the different choices of your customers.
Builds brand trust
Offering CoD elicits a greater sense of trust in Filipino customers because they receive their items before paying for it. They can inspect whether or not the item really is what the online shop promised, and if it has arrived in good condition. Providing CoD also shows that you’re aware of the factors you should consider while navigating the local E-commerce industry.
Benefits of CoD for customers
Gives customers the luxury of time
When you provide CoD, you give your customers the luxury of time in two ways; first, you give them time to check their packages and make sure everything is as it should be. Once they’re done, that’s the only time they need to pay.
Second, you also give them more time to come up with the money they need to pay for their order. These instances may be rare, but a few hours or even a day can make the difference between a customer being able to pay for an order, and that customer not being able to.
Eliminates the stress of refunds
In the event that you, as a business, are unable to fulfill a customer’s order for whatever reason (e.g., a stock shortage) they may opt to cancel their order with you. On the other hand, they may also decide to cancel their orders for reasons completely unrelated to your service.
By providing CoD, you remove the stress of refunds, both for you and your customers. You won’t need to coordinate with them about it, or answer messages asking for follow-ups on the refund.
Helps customers avoid online fraud
As a business, it’s your responsibility to provide secure payment options for your customers. However, not all customers are tech-savvy, and these customers are more prone to being victims of online fraud. Maybe you have secure payment methods, but you can’t say for sure that the same goes for every other online store.
By providing CoD, you help customers feel at ease because they know they can just pay with cash, and that they don’t need to share sensitive information online. This is an important benefit of choosing Cash on Delivery.
Ready to integrate CoD into your business?
Want a hassle-free way to integrate CoD into your selling platform? Then partner with Payo!
Payo is an E-commerce enabler that helps online businesses scale through tech solutions, such as a data-driven courier algorithm, multiple warehousing, and CoD integration. Whether you’re a local or international merchant, Payo is committed to helping you effectively and efficiently sell your products in the Philippines.
Payo can integrate CoD for you through Shopify or by manual tagging on the merchant dashboard they provide. Once it’s been integrated, your customers will instantly see a CoD option on your selling platform. Payo will also take care of collecting CoD payments and remitting your earnings upon delivery.
Sounds convenient, right? Sign up today and let us make E-commerce simple for you!