Easy steps to sell online with Cash on Delivery
Published on 02 Feb 2023
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The pandemic has had a huge impact on businesses and one of the industries that has grown immensely post-pandemic is the e-commerce business. While there is a strong push for the digital mode of payment, most people still go with COD delivery when ordering products from e-stores. Three out of 4 people in India still opt for Cash on Delivery for their online orders. It could be because of a lack of trust in online sellers, especially new ones.

Online selling has opened up a new market and it is the most used by today’s generation who are technologically savvy. However, a lot of them still do not rely on online payments and prefer COD remittance. Many are wary of fraudulent activities, poor product quality, or may not have access to quick digital payment methods. Needless to say, sellers that do not offer the option for Cash on Delivery payments may be compromising with sales.

Why is cash on delivery important? 

COD delivery, which is one of the most talked-about features of e-commerce, plays a crucial role in any online business. According to Nielsen’s Global Connected Commerce Survey, 83 per cent of Indian customers prefer to pay via COD delivery. This mode of payment is particularly popular in tier-2 and tier-3 cities that do not have the infrastructure or awareness for making online payments. Customers also prefer to pay via Cash on Delivery as they want to avoid the hassle of feeding in their bank details for online transactions to avoid online scams. However, as more than half of the customer base opts for COD orders, it becomes mandatory for online stores to provide that mode of payment.

Pros and Cons

While COD delivery poses many advantages for the customer, sellers need to be wary while offering this mode of payment. For the buyer, it offers a flexible mode of payment. They have to pay cash only after receiving the product. Secondly, it saves them the risk of being pulled into online scams or fraudulent activity. They do not have to rely on online banking or payment cards for paying via Cash on Delivery.

For sellers, it increases the risk of losses, especially if there is late COD remittance from their shipping partners. It may also incur additional costs charged by the courier company. COD delivery also increases the chances of returns to origin (RTO). In the case of returned products, the sellers have to bear the cost of shipping without making any actual sales.  

Here are the easy steps to sell online with cash on delivery 

Are you looking at selling your products online? Here are the steps you should follow to sell online with cash on delivery:

Pick your product 
The first thing that you need to decide is the product or service you want to sell. It could range from apparel to electronics, or food to home décor and furnishing. It could also be a service like beauty, personal care, or healthcare. Your decision depends on the USP that you offer which makes your service/product buyable.

Choose a platform
For your product to be readily available, it is important to pick an e-commerce platform that can justify your product/service. You can choose to sell through a website, marketplace, or social media account. According to Digital Commerce 360, marketplaces accounted for 58 percent of total global sales in 2019. Another option to sell your product is a website.

Market your products
It is very important to understand that marketing your product correctly makes a lot of difference in your sales. If you are selling through a marketplace, they handle the marketing at their end. If it is via social media, then marketing and selling on the platform happen simultaneously. However, you need to be involved a lot more if you have your own website.

Connect with potential customers
It is time to connect with your potential customers and start taking orders. Give your customers an option to order with cash on delivery. If you are selling through a marketplace, the order will be placed via the platform and then relayed to you. In the case of a website, the orders will be directly placed on your website. For social media, the customers can choose to message you directly or reach you through WhatsApp or email.

Find a reliable logistics partner
It is very important to choose a credible logistics partner. Pick a partner like Ecom Express that accepts Cash on Delivery orders. It has a robust system, automated processes, and as little as a 2-day COD remittance. Once you have chosen a logistics partner, a delivery person will pick up the order from you and deliver it to the accurate address provided by the customer and collect the payment.

Your payment is here
After the logistics partner has delivered the order and collected Cash on Delivery, they transfer the amount for all your deliveries within a specific time period. To ensure that you get on-time COD remittance, choose a trusted logistics partner like Ecom Express.  

How can Ecom Express help your business? 

Cash on delivery is one of the biggest challenges faced by sellers in the e-commerce business. Make sure you choose a logistics partner that is reliable. Ecom Express is the preferred partner for business, be it small-scale or large. It goes back in time to be one of the largest e-commerce logistics providers with a strongly-built system, processes that are automated, and as little as a 2-day COD remittance. More than 70 per cent of Ecom Express shipments are COD deliveries. On-time COD remittance will allow you to reinvest the cash flow into your business.

Happy selling!

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