Logistics - June 9, 2021

7 Tips to Reduce COD order Failures in eCommerce

Cash on delivery is one of the most popular payment options in the world of the eCommerce business. Yet, a majority of sellers shy away from offering it in their stores. It turns out that while cash on delivery is a lucrative option for customers, it is also a big hassle for online retailers. Successful COD delivery for eCommerce business lies as one of the biggest challenges faced by sellers. 

From a general perspective, when a customer pays for an order before it is delivered to their doorstep, it shows a strong interest in the purchase. On the other hand, when it is a cash-on-delivery order, there is no binding promise that the customer will pay for or accept the order once it arrives at their door. In other words, the likelihood of a seller getting scammed is much higher in the latter. The idea is that not paying instantly does increase the chances of a sale, but at the same time, it also hurts the seller when the order gets canceled midway or, worse, is undelivered.

Having said this, cash on delivery remains one of the most exploited and misused features of eCommerce. While the customer might not have to bear any stakes, it is easier for the sellers to get disheartened. At the same time, offering COD as a payment option lies at the backbone of any online business. So, what is the way out? It seems like, with effective management of COD orders and some strategies in place, sellers can minimize their losses incurred due to bad COD orders. Take a look below at the top ways to do so-

Set a COD Qualification Order System

The first thing to do is to qualify your COD orders. If you're a new seller, you might not be able to do it as this requires understanding your customer's shopping behavior. COD delivery for the eCommerce business invites a lot of fake orders as well. So, look up your database and find a list of such customers who have a history of refusing COD orders. This will help you ship genuine orders and minimize your losses due to eCommerce scams.

Offer COD on Selected Category of Products

If you have an expensive line of products in your store, you can choose not to offer COD on them. Similarly, if the products are bulky or costly to ship, you must make sure that the customer wants them. So, keep these orders restricted to online payments while offering cash on delivery on general products using a COD shipping provider.

Provide Incentives for Online Payments

Most customers find COD as a convenient payment option since it doesn't require entering many details. You can actually entice such customers by offering them a lucrative opportunity to pay online. This includes discounts on paying via wallets, UPI, debit cards, etc., or you can also offer a cashback feature where the customers get a certain amount as cashback when they pay via any online mode. This reduces your burden of hiring a COD shipping provider. 

Send Customers Notifications About Order Delivery

Many customers are not available to receive the order when it arrives. Some customers do not have cash ready with them for the payment. To avoid order rejection due to these reasons, you can send your customers timely notifications. Partner with a COD shipping provider that lets your customer choose the delivery date from a given range.

Confirm COD Orders via IVR or Text

The smart idea is to set up an IVR system or an automated text to confirm your customer's COD orders. This assures that the customer is still interested in the product before shipping it with a COD shipping provider.

Look for 3PL that Help You Offer Pay on Delivery

You can partner with a COD shipping provider like Shyplite that offers a pay on delivery option to your customers. This way, your customers who do not have the cash at the delivery time can still pay via cards or other online payment modes at their doorstep. Shyplite provides you the option to leverage 30+ courier services for fast, low cost and effective order deliveries, without any subscription costs.

Keep a Minimum Purchase Limit for COD

An intelligent way to manage COD orders is to keep a minimum purchase limit for them. The threshold order value will help you effectively reduce your COD shipping costs and make delivery for eCommerce business hassle-free. This way, the customer will also try to purchase more to get the COD option.

Keep Your Delivery Promises

A lot of COD orders are canceled because of late deliveries. Partner with a COD shipping provider that helps you keep your promises to your customers with fast doorstep deliveries. Make sure you have a partner like Shyplite that helps you fulfill your COD orders in time with a custom tracking page helping customers track their orders hassle-free.

Conclusion

With the proper measures taken promptly, COD can help you grow your business. Undoubtedly, you will need robust support from your COD shipping provider, which is why you must partner with the right one. Look for a logistics partner that values your business as you do. Shyplite can make for your ideal logistics partner as it helps you grow your business and provide the maximum satisfaction to your customer. You get to choose from 30+ courier services, calculate shipping rates using a rate calculator and ship orders starting Rs 21/500 gms. Get started now with zero subscription fee!

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