Though you may not realize it, there are a number of benefits that come along with offering cash on delivery as a payment option to your customers. Let's explore some of the reasons why your customers may prefer this method – and how it can actually benefit your business in the long run.
Shopping online is a growing trend, yet some still remain hesitant to use their credit card online.
Shopping online has become increasingly popular due to its convenience and cost-saving potential. However, some people hesitate when it comes to using a credit card online.
It is understandable, as credit cards often contain personal information and private details that you don't want to share with the world. When it comes to shopping for certain products or making purchases in specific situations, customers are more likely to select the Cash on Delivery option as their payment method.
When your customers are most likely to choose cash on delivery (COD) as their payment type?
Can't or don't want to pay in advance
Customers often choose cash on delivery for higher-value purchases that they are unwilling or unable to pay for in advance. This usually applies to products such as electronics, white goods/RTVs, jewellery, but also clothing and footwear, as well as books, films, and video games.
Not having access to a payment card
Limiting your market to buyers who can only pay in advance can be detrimental to your sales in the long run. This is especially true in markets where cash is still the prevalent payment method, such as France or Bulgaria.
Purchases that we need urgently
In a situation where you need a product as soon as possible but do not have the option to use fast payment methods such as online transfers, the cash-on-delivery option enables you to receive the order as soon as possible . The shop can then prepare and send the parcel straight away without having to wait for the transfer to be processed.
Distrust of the online shop
Sometimes it is not a matter of money, but trust. Customers who are not sure whether an online shop is trustworthy may choose cash on delivery to first check the quality of the services and goods offered by the shop.
Providing a COD service helps build customer trust. In fact, for some people this is the main reason for using COD so they can to inspect the product before paying.
it's a gift purchases
Customers often choose cash on delivery for purchases that are intended as a gift for another person, as this way they can deliver the gift without revealing its value ahead of time. If the partner saw the payment for the gift on the bank statement, it would ruin the surprise.
Want to keep it private
Some customers prefer to choose cash on delivery for purchases that are more private or sensitive, as they do not need to share their financial details with the online shop. From pleasure and fantasies, to health and fitness, this category includes a vast array of different purchases.
COD will boost your business
Regardless of why customers choose cash on delivery as a payment method, it is important to remember that this option can be beneficial to your business. Providing your customers with the ability to pay with cash upon delivery can help you increase sales and boost customer satisfaction. This indirectly increases customer trust as it can avoid the risk of loss when shopping, which is certainly a plus point for your hustle! It makes customers feel more secure when shopping in your online store. From there, it can be a guarantee that they will buy again.
Plus, COD payments are secure and easy to process – making them an ideal choice for businesses. So make sure your online store offers cash on delivery as a payment option to ensure you are providing the best possible service to your customers.
This way, you can keep up with modern trends and stay ahead of the competition – while also helping to build customer loyalty - which is invaluable for any business in today's market.
