Next Gen Payment Gateway: Cash on Delivery Shopping Guide - Enterprise Edition

Cash on Delivery (COD), also known as payment on delivery or instant payment, is one of the most popular payment methods today. This payment method is characterised by the fact that the consumer does not have to pay for the goods until they have received them.

In the cash-on-delivery shopping model, firms tend to face greater cost and payment security risks. This is due to the uncertainty of whether the consumer will honour the transaction or not. Despite the existence of several digital payment methods in the market, such as e-wallet payments and online banking, cash on delivery remains popular in today's society.

What is Cash on Delivery and how does it really work?

Cash-on-delivery is a system whereby the consumer pays the business only after receiving the product. It is important to note that this payment method is usually applicable to non-perishable goods. Here's a step-by-step breakdown of the processes involved-

First, consumers place orders on cash-on-delivery shopping sites through online catalogues provided by businesses.

Secondly, when consumers receive the goods, they have the option of paying immediately or, if they decide to keep the goods, within a specified period of time.

In a cash-on-delivery shopping business, if the consumer decides not to keep the item, it will be returned and the logistics costs will be borne by the business.

However, if the consumer is satisfied with the product and decides to keep it, they are required to pay for it.

These same steps apply to consumers shopping through cash-on-delivery shopping apps.

Is cash on delivery a good thing or a bad thing?

Whether this is a good or bad thing depends on personal opinion, but it certainly helps to assess the pros and cons. If you're a business considering moving to a cash-on-delivery shopping model, here are some of the pros and cons for you to consider-

Advantages of cash on delivery shopping

Cash on delivery is best suited for consumers who want to try new products but are concerned about the risks involved. They can try out the products of a new business and pay when they receive their order and are satisfied with it. Therefore, cash on delivery is definitely the way to go for small businesses looking to make an impression.

Another benefit of cash on delivery shopping is that consumers can place multiple orders and then only pay for the items they want to keep. For example, if a consumer is confused about the quality of two products, they can place orders for both and compare which one is better after the goods are delivered.

The cash-on-delivery method does not present the potential for online payment fraud. Although the likelihood of online fraud is low in formal businesses, it may still occur in some new businesses.

The cash on delivery method will enhance the overall customer experience as they will be able to visualise your products more. As a result, this will put the business in a position to become more known.

Cash-on-delivery (COD) shopping allows consumers to get rid of the limitations of electronic payments. As a result, even if a person lives in a rural area where credit or debit cards are not available, he or she can buy products from an online shop.

Disadvantages of cash on delivery shopping

If multiple consumers choose to buy in bulk in order to try and choose the perfect product, your business may run out of inventory. If consumers decide not to keep the items, you may lose willing customers because you are out of stock.

This pseudo-out-of-stock situation may cause problems for other new customers purchasing your product.

Cash-on-delivery shopping is a definite risk for sellers, as they usually send the item without any guarantee that payment will be received.

Cash on delivery shopping can also lead to cash flow problems. That is, there will be a delay in the business receiving the cash that would have been available.

Cash on Delivery Shopping Sites in India

In India, there are many websites that offer cash on delivery as a payment method. Here are some of the major Indian cash on delivery shopping sites where you can try to sell your products -

Flipkart

Amazon

Myntra

Ajio

Bigbasket

Meesho

This list is not comprehensive, but it shows that cash on delivery is still a popular payment method.

concluding remarks

Cash on delivery shopping allows consumers to buy their favourite products without the fear of being scammed by online companies. Now, you can discover the product of your choice while browsing Instagram or Facebook and pay for it when it is delivered to your door. This approach avoids risk and gives you the opportunity to take home your favourite accessories.

Frequently Asked Questions

Why is the Cash on Delivery option not available for high value items? Cash on Delivery shopping sites may choose to impose a cap on the amount payable on delivery due to the higher risk borne by the seller. When should I pay the amount due? Ideally, payment should be made as soon as the parcel is received from the delivery person. However, this may vary from business to business. Why is the Cash on Delivery option not available in certain areas? The courier company responsible for delivery has restrictions on where it can be delivered, so certain areas may not be within the delivery area to offer the Cash on Delivery service.