The door-to-door payment system, introduced by e-commerce sites to eliminate the problem of insecurity and enable them to shop comfortably, has been a factor that activates potential customers who are worried about the security of their credit card information. As with every payment system, there are advantages and disadvantages of the cash on delivery application. In this article, we will talk about the advantages and disadvantages of the cash on delivery application, which is used by e-commerce companies and is an important step in establishing a trust relationship with the customer.
Since e-commerce has entered our lives, the most difficult obstacle to overcome for e-commerce companies is undoubtedly the problem of trust. Over time, e-commerce companies tried various ways to overcome this problem, but none of them could replace the cash on delivery application. In this context, the biggest advantage of the cash on delivery system for the seller is not only to prevent the customer from worrying about the security of their credit card information, but also to enable potential customers who do not have a credit card to be included in the e-commerce ecosystem by using this service. In different articles, we mentioned that e-commerce companies are working to make existing customers shop again. Including potential customers who cannot shop from e-commerce sites due to trust issues in the ecosystem and offering them the option to pay at the door will pave the way for people to purchase their next needs in the same way.
There are many factors that distinguish e-commerce from physical stores. In the physical store, you can see and touch a product and decide accordingly and shop securely. In e-commerce, since the products are in digital environment, the selection process is made by examining the photos on the website. Things like seeing or touching the product up close are not valid on e-commerce platforms. The security of the credit card information used during the payment process is also a question mark for the customer. Thanks to the payment at the door application, the product goes to the customer's door. The customer has the opportunity to inspect the product there, check it and pay securely or not. This encourages the customer to shop by ending their security concerns.
Payment at the door system is an advantageous application for more customers. The disadvantages for the seller are generally;
- Unreasonable renunciation of the order,
- The orderer has not proven his age and orders for entertainment purposes,
- The ordered product is delivered to the wrong person and therefore canceled,
- Undeliverable cargo problems due to incorrect delivery information,
- Cancellation of the order due to non-payment of the amount due for the product delivered to the door,
- Cancellation of the order due to the fact that the product sent does not satisfy the customer,
And due to many similar problems, the seller may suffer serious losses.
Payment at the door application is usually managed by carrier cargo companies. Cargo companies working like intermediary institutions charge additional fees for payment at the door and this fee is reflected on the buyer. The buyer sees the cost of this transaction on the screen where he/she creates the order and approves it.
Regardless of the payment method, when the ordered product is delivered to the address by cargo, if the relevant person cannot be found at the address, it is taken to the branch. Depending on the policy of each cargo company, the product is kept at the branch and if it is not received, it is returned to the seller. In this case, the buyer has to re-order the product he needs and endure the extra time.
Turkey's first and only e-commerce ERP software, Comwize, supports the cash on delivery application as well as the various payment infrastructures it offers.
We tried to share the information you may need about the advantages and disadvantages of the payment at the door application. If you would like to meet Comwize, please contact us.