With more than 70% of online shoppers choosing to pay for orders after delivery, cash on delivery is a necessary evil for eCommerce businesses. While offering this payment mode helps remove the barriers during checkout and increase sales, it puts online brands at a much higher risk of issues like return-to-origins (RTOs) where consumers can simply decline the order at the time of delivery or cancel it while in transit. A simple cancellation of a cash on delivery (COD) order results in the business incurring additional costs of forward and reverse logistics, order processing, packaging and repackaging, quality checks and an increased risk of product damage. The disadvantages of cash on delivery to businesses are plenty.
But when consumers prefer COD, how do businesses encourage prepaid orders?
The answer to a win-win here is Partial COD by GoKwik.
What Is Partial COD?
Partial cash in delivery or Partial COD is the industry’s first payment method, introduced by GoKwik, that addresses the challenges of both the consumers and businesses. With this payment method, a consumer can choose to pay for a certain amount of the order digitally and the rest in cash at the time of delivery. Meanwhile, online brands get a sense of assurance and the chances of them recording RTOs reduces significantly.Also Read: Navigating the COD Challenges: How eCommerce Brands Can Thrive
What Are The Benefits Of Offering Partial COD?
Online businesses have been moving back and forth between offering cash on delivery to their audience or completely removing it in order to reduce the risk of bad purchases and RTOs. Here, Partial COD taps into the best of both payment methods, reducing the barriers to an online shopper making a purchase.
What Is The Impact Of Partial COD On Orders?
GoKwik is introducing online brands to the benefits of this new payment method. As we start to enable partial COD for consumers across different audience segments, we’re seeing the following impact on business growth:
Simply put, we’re noticing that with Partial COD in place, brands don’t need to remove cash on delivery entirely to control their RTO on orders. And that consumers are actually comfortable paying partially for an order up front. In fact, it’s a value add in further enhancing customer payment journey.
Do You Need Partial COD?
If you ask us, cash on delivery is a naturally opted for payment method and it’s not going anywhere – nor are the risks associated with it. Partial COD helps you address these risks and still be able to cater to consumer preferences. The good thing is that partial COD is extremely easy to configure if you’re already using GoKwik’s Kwik Checkout. With no additional integrations or set up required, you can get started with Partial COD in no time.
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