Why do buyers order goods by cash on delivery?

Чому ви замовляєте товари післяплатою?

— Пані Зло. (@masya_bardyn) May 28, 2024

Ordering goods by cash on delivery is popular among many buyers in Ukraine. This payment method has a number of advantages that make it attractive in different situations. Let's look at the main reasons why people choose this method.

1. Distrust of the seller

Many buyers prefer cash on delivery when they buy from a new store or an unverified seller. This helps minimize the risks associated with possible fraud or receiving low-quality goods. Customers want to see the goods first before paying, especially when it comes to large amounts of money.

2. No money on the card

Some customers say they don't always have enough money on their card at the time of ordering. Cash on delivery allows them to pay for the goods upon receipt, which is convenient when they have cash or the ability to get money before delivery.

3. Psychological convenience

For many buyers, it is important to be psychologically certain that they will receive the goods before paying for them. This is especially true when delivery takes several days. This approach makes sure that the goods will actually be delivered.

4. The need for product verification

Customers often choose cash on delivery to order clothes or other goods, where it is important to make sure of the quality or size before paying. This is convenient because you can immediately refuse the goods if they do not meet expectations and not waste time on a refund.

5. Convenience of calculation

Some buyers note that cash on delivery is convenient because it allows them to pay by auto-debit at Nova Poshta or another delivery service. This eliminates the need to go to the bank and enter account details.

6. Incentive for fast shipment

There is an opinion that cash on delivery encourages sellers to ship goods faster. After all, payment is made only after receiving the goods, and sellers are interested in prompt delivery.

7. Alternative in case of lack of funds

Sometimes buyers order goods by cash on delivery when they temporarily do not have money, but they expect to receive funds in the near future. This allows you to reserve the goods and be sure that they will not run out of stock.

Cash on delivery remains popular with shoppers due to its many benefits. Understanding these factors can help merchants better customize their offerings and increase customer trust.

How to protect yourself as a seller so that the buyer actually picks up the cash on delivery parcel

You can protect yourself from possible risks associated with cash on delivery using several strategies. Here are some tips to help minimize risks and ensure that the buyer picks up the parcel:

1. Overpayment for delivery

You can ask for an advance payment for the delivery of the goods. It can be a small amount that will cover the shipping costs. Thus, the buyer will be more responsible for receiving the goods. However, you should keep in mind that buyers are wary of card prepayments, so the sale may fail altogether.

2. Restrictions for new customers

Set a limit on the amount of a cash on delivery order for new customers. For example, the first order should not exceed a certain amount. This will allow you to check the reliability of a new customer before allowing them to order expensive products.

3. Feedback and order confirmation

After receiving the order, contact the buyer to confirm. The most convenient way is to send a message on Viber. Make sure the buyer is really interested in the product and ready to receive it.

4. Bonuses and discounts for overpayment

Offer discounts or bonuses for full prepayment. This can encourage customers to choose prepayment over cash on delivery, reducing your risk.

5. Use of reputation and reviews

Provide the customer with information about your reputation and feedback from previous customers. This will help build trust and increase the likelihood that the buyer will be more responsible with their order.

6. Additional services for regular customers

For regular customers, you can offer additional services or privileges. For example, faster delivery or special promotions. This will increase customer loyalty and reduce the risk of not receiving the parcel.

7. Subscription delivery for expensive goods

For expensive goods, you should consider only the option of prepaid delivery. This will reduce risks and provide greater confidence in receiving the goods. By using these strategies, you can significantly reduce the risks associated with cash on delivery and ensure that the customer receives the goods successfully.