Payment on delivery or payment before Delivery which is better for the Nigerian Small business owners.
Over the past few month, I have set out time to study Payment on delivery and payment before delivery to find out the best option for the Average eCommerce business owner in Nigeria.
First of All, I set up a campaign to sell a wrist watch, I made my fb advert and sent visitors to my konga store… (PAYMENT ON DELIVERY) I spend 20$ on Ads and i got 15 orders. After 10 days 9 items was delivered and 6 was returned.
I set up another Campaign with same Amount of Money and same product (WITHOUT PAYMENT ON DELIVERY) I got only 5 Orders.
This made me to wonder why people are screaming everywhere kill POD Everywhere. Payment on delivery is a good business model I stand to be Corrected
Because of Nigerian Past History on Internet Related Business Not so many Nigerians are ready to Part in their hard earn money before seeing the product.
Not every Nigerian have access to DIGITAL Payment and most times Payment will fail due to network problem (QUICK-TELLER). Thanks to konga pay.
I come to Understand that POD Givers buyers the confidence to place order for a certain product even when the merchant has no reputation.
On the other Hand My Entire Bounce Rate is 30 percent with 70% Delivery Rate (POD) I spend About N220,000 Every month on Unserious Buyers (People who has Refused to Pick up their Goods) I also pay 1.5% for cash Handling.(POD).
I Wont be having so many orders if i am operating on Payment Before Delivery Model (My Entire business started smiling since I introduced PAYMENT ON DELIVERY) I don’t have to spend so much time convincing costumers to trust me. (MAKING THEM BELIEVE THAT I WILL NOT SCAM THEM)
To me, PAYMENT ON Delivery is a good business Model don’t know what anyone else think.
Just my 1 cent
By the way, How has payment on delivery affected your business? share