How to integrate Cash on Delivery into your online store

When it comes to online retail and E-commerce, Cash on Delivery is king in the Philippines. According to a 2020 survey, Filipino consumers still prefer cash payments for their online transactions. This is because they are either unfamiliar with digital payments or simply prefer getting their goods first before paying for them.

This highlights the value of having to integrate Cash on Delivery for every online store. Whether you’re a startup or a well-established business, Cash on Delivery is vital to your online store’s payment methods so you can cater to more Filipino customers. But how do you get started?

Direct to couriers

Many local couriers in the Philippines now offer Cash on Delivery services for online stores. If you’re operating outside an E-commerce platform, you can offer this payment method through your preferred couriers.

Couriers offer different arrangements when it comes to Cash on Delivery. One arrangement sees their riders paying for the goods upon pick-up and collecting payments after dropping them off. Another is through cash handling where they collect all payments from multiple deliveries. They can either give your earnings in person or remit them through bank deposits.

There are also couriers that offer single or bulk deliveries but follow a remittance schedule. This means that they’ll collect payments within a certain period and remit payments based on the dates agreed on.

Via E-commerce sites

Popular E-commerce sites like Lazada and Shopee make it easier for sellers to offer Cash on Delivery for their online stores. You can actually do this through their respective apps or websites.

Simply go through the settings and browse through your shipping information. When you’ve located the “Enable Cash on Delivery” or “Enable CoD option,” one simple tap and it’s already activated.

Offering Cash on Delivery for your online store via E-commerce sites is also more convenient because they already have courier partners. Along with enabling the CoD option, you can also choose which couriers you’d like to make available to your customers. Just remember that shipping rates vary for each courier.

Payments will be remitted to your bank account either in real-time or based on a schedule, depending on which site you choose to work with.

Through E-commerce enablers

Similar to E-commerce sites, E-commerce enablers usually have many courier partners. What makes working with them more efficient is that they also have access to different E-commerce platforms.

With Payo, integrating Cash on Delivery to your online store is simple and easy. If you’re already on Shopify, all it takes is one tap of Payo’s Cash on Delivery plug-in. It will instantly be available to your customers upon checkout.

When it comes to payments, Payo understands that your customers’ courier preferences vary. To streamline this, Payo collects payments from riders and remits them to you in one go. Because of Payo’s digital capabilities, you can track payment collections better and see the status of deliveries in real-time. You can also choose Advanced Remittance to receive your payments even before the couriers remit their collections. 

These are the multiple ways to go about offering Cash on Delivery in the Philippines. But why stop there? Payo offers other services that can help optimize your entire E-commerce journey.  Whether it’s Warehousing, Fulfillment, Last Mile Management, or Live Customer Support, Payo can help you digitize your operations so you can focus on building a better business.

Interested in Payo’s E-commerce services? Sign up with Payo today or send us a message at [email protected]. We’re happy to help you out!