How Payment on Delivery (POD) is supporting e-commerce businesses

Sendy Fulfillment
July 29, 2021
March 31, 2023

How Payment on Delivery (POD) is supporting e-commerce businesses 

Payment on Delivery (POD) is a payment method that has gained popularity in recent years, especially in e-commerce businesses. It allows customers to pay for their purchases when they receive the goods, rather than paying upfront. This method has several benefits for businesses that  we will explore in more detail.

Increased sales

POD can be an excellent way to increase sales for businesses. Customers who are hesitant to purchase online or don't have access to online payment methods are more likely to make a purchase if they can pay on delivery. As a result, businesses can expand their customer base by offering this payment option.

Reduced cart abandonment

One of the biggest challenges that online businesses face is cart abandonment. Many customers abandon their carts at the checkout stage due to inadequate payment options. By offering POD, businesses can reduce cart abandonment rates and increase conversions.

Increased customer trust

Customers who are new to a business or are hesitant to make an online purchase may feel more comfortable with POD. This is because they can inspect the product or service before making a payment. By offering POD, businesses can build trust with their customers, which can lead to repeat business and positive reviews.

Cash flow management

For businesses that operate on a tight cash flow, POD can be a beneficial payment method. This is because businesses can receive payment for their products or services immediately upon delivery, which can help them manage their cash flow more effectively.

Reduced fraud

POD can also help businesses reduce the risk of fraud. This is because customers are required to make a payment only after they receive the product or service. This reduces the risk of fraudulent transactions and chargebacks.

Improved customer experience

By offering POD, businesses can improve their customer experience. Customers appreciate having the flexibility to choose a payment method that suits their needs, and offering POD can help businesses cater to their customers' preferences.

Sendy introduced a Payment on Delivery product for e-commerce and social commerce vendors in Africa. This product facilitates secure online shopping in Africa by supporting the way online payments are made. Through this product, customers are able to inspect the state of their packages before making payments thus giving them peace of mind and confidence in their purchases. 

With online sales in Africa projected to grow significantly in the coming years, Sendy's Payment on Delivery product aims to increase sales and provide a solution to the 80% of customers who currently don't buy online due to lack of security. This will help to significantly increase ecommerce businesses, supporting over 100,000 businesses that are seeking to reach new customers. 

In addition to providing convenience and security, the Payment on Delivery product also includes buyer protection, ensuring that customers will not receive fake products and are assured of receiving their exact ordered items. Businesses will be able to manage their payments effectively and mitigate sales losses through encouraging customers who prefer to pay upon delivery of their goods.

To use this product, businesses select the Payment on Delivery option at checkout when placing their orders on the Sendy Fulfillment App. 

Sendy is continuously investing in empowering people and businesses by making it easier to trade. It provides the easiest way for businesses of any size to move goods, enabling them to drive more efficiency and growth.

Blog Author

Sendy Fulfillment