JUNE 21, 2021
Before COVID-19, 41% of online orders were paid by cash on delivery. In 2020, though with social distancing, containment zones etc., more customers chose to pay online to make sure they get the products. Even then, cash on delivery accounted for 28% of e-commerce orders!
Despite the growth in digital payments and increased fintech maturity, cash on delivery is here to stay. This is for one simple reason: Customers in India still like to see, touch and feel the product before paying for it. As a small and medium enterprise (SME) without a strong track record, you will be losing out on a huge opportunity if you don’t offer cash on delivery. Here’s why.
1. Fewer customers will give you a chance if they can’t pay cash on delivery. They are more likely to choose a brand they already know — either through advertisements or past purchase — instead of risking an advance payment online with you.
2. When cash on delivery is not an option, customers may not trust you. They might wonder if you’re not confident of the product quality. They might also worry if the returns processes might be difficult if they pay you in advance.
3. You will miss out on a large part of the Indian economy that is not comfortable with online payments, do not own credit cards etc.
If you’re selling online today, you need to offer cash on delivery services to establish yourself, grow and scale your business.
But for small and medium enterprises, this is not easy. Let’s say you’re a small business building products from your garage. You most likely use a courier service to ship your products. Courier companies today are not equipped to accept cash or transfer them to you — they can only deliver products from one place to another. In this case, the only way to offer cash on delivery is to do the logistics yourself. That is not only expensive, but also inefficient.
We understand this, and we’ve designed Delhivery SME to address exactly this problem. Delhivery SME is a shipping and logistics service. designed exclusively to empower small and medium enterprises to leverage the e-commerce boom in the country. With Delhivery SME, you focus on making and selling stellar products; we will take care of reaching it to your customers — wherever they are.
We understand that cash on delivery is an important part of this, which is why Delhivery SME offers cash on delivery services for all orders. When you book shipping with us, our agents can handle the collection and management of cash across all the 17000+ pin codes.
As your logistics partner, we process your cash on delivery orders just like all others — ensuring door-to-door delivery. The only difference is that our delivery executives collect cash at the customer location.
Once the customer has paid cash, our delivery executives count the cash and make sure it’s accurate. They record it into the system, immediately updating the app about the payment. Delhivery then enables the periodic transfer of the cash that is collected.
When you partner with Delhivery, your cash on delivery is handled effortlessly and entirely by us. For you, it’s still a complete digital operation.
That’s not all. You also have complete visibility over all your cash remittances in real-time. Delhivery dashboard. You can look at the data on cash on delivery orders and correspond it to other key performance indicators such as profitability, customer satisfaction, retention etc., and shape your business strategy accordingly.
At Delhivery, our mission is to become the operating system for India’s e-commerce. We don’t discriminate the big players from the small ones. We believe that every small and medium business owner deserves a shot at serving one of the world’s largest markets. We have designed Delhivery SME to do exactly that.
With Delhivery SME, you can: