While Pakistan’s e-commerce scenario has significantly reshaped, customers are still reluctant to adopt e-payment methods and mostly prefer cash on delivery (COD) as the method of payments for online shopping.
There has been a lot of discussion on how Pakistan’s e-Commerce market can finally move away from its reliance on Cash on Delivery (COD).
Mostly online shoppers experience a level of mistrust combined with a fear of the unknown and hesitate to complete actual process of a full order because of apprehensions regarding online payments. COD has given many the faith that even if their order is not delivered, they have not committed any actual money towards their perceived gamble and through this process they have protected themselves from any possible grievances.
However, Cash on Delivery is not going away soon so the main issue is to how to reduce the possibilities of the rejection of an order at door step as in this case the merchant would have to deal with the payment for the delivery attempt. He would not be able to sell the product for next some days as the product is out of stock for delivery and there would be higher chances of receiving package in unsellable condition.
In any case, if you must offer COD, you can reduce the return rates with a few measures in place.
First of all you must call them up to confirm the purchase. Ask your delivery partners (courier) to call to confirm delivery time and amount to be kept ready.
Sometime you have to return a shipment because the delivery guy doesn't have change so make sure your on-ground delivery personnel carry change.
In case the amount for the shipment is very large and you have doubts about the order then ask for some money up front. It's best if they can send across all the money upfront, as then you save on the shipping cost, however failing that, ask for some money upfront that at least covers your shipping cost.
Provide multiple options of bank deposit, EasyPaisa or JazzCash deposit so that the customer can conveniently make payment.
Make sure the payment methods are listed on your website, and you have a message/email ready to send as soon as you talk to the customer.