3 Steps to Start using Cash on Delivery (COD) for Business in the Philippines
For business owners who conduct business online, Cash on Delivery is not a foreign concept. In fact, it’s a concept much preferred by a lot of customers forcing business owners to include it in their payment options. But what does it mean, and more importantly, how can it benefit your business? Cash on Delivery (COD) is a payment method where customers can pay for goods or services upon delivery by a courier service. It's often used for online shopping since it eliminates the need to pay upfront with a credit card or a debit card.
There are a few key benefits to using Cash on Delivery:
1. Customers feel more secure when they can pay for products after they've received them. This can help build trust and encourage repeat customers.
2. It's a convenient payment method for customers who don't have a credit card, a debit card, or don't want to use one online.
3. It can help to reduce the number of abandoned shopping carts, as customers are more likely to complete a purchase if they know they can pay for it later.
How does Cash on Delivery work and how do you get paid?
When a customer orders a product from any online store, the order is sent to the seller. The seller then packages and ships the product to the customer through a courier service. Once it arrives, the customer pays for both the product and shipping amount in cash which the courier will receive for the online seller.
After the courier receives the payment, the courier will then remit the money back to the online store. Payouts or remittances may vary depending on the courier. Some couriers payout on a monthly basis, but other platforms that provide courier services such as Shipmates do weekly payouts.
Has Cash on Delivery increased online shopping in the Philippines?
Due to the benefits listed above, it's no surprise that Cash on Delivery is becoming increasingly popular in the Philippines. A study by Paypal showed that 66% of online shoppers in the Philippines have used Cash on Delivery as a payment method. This number is likely to continue growing in the coming years as more and more businesses adopt this payment method, so if you're looking for a simple and convenient way to accept payments from your customers, Cash on Delivery may be the perfect solution for you.
If you aren't convinced that Cash on Delivery is an important payment option to have in the Philippines, consider this: A study by GlobalData Banking showed that the Philippines is one of the largest markets for online shopping, with a total value of ₱264.5 billion in 2021. This number is projected to grow by 5% annually in the coming years, so it's important to make sure your business is ready to take advantage of this growth.
With the increase of online shoppers, it's also important to have a variety of payment options available for the growing market. In addition to Cash on Delivery, you may also want to consider accepting payments through debit cards, credit cards, GCash, and Paymaya.
3 Steps to Start Using a Cash on Delivery option with Shipmates:
1. Sign up for a free Shipmates account
2. Add COD as a payment option on your website or e-commerce store. This will allow your customers to pay for products with cash when they're delivered.
3. Book a courier from our platform and click on the Cash on Delivery option. Our couriers will then pick up the product and deliver it to your customer.
With Shipmates, you can start accepting Cash on Delivery payments in a matter of minutes. It's that easy! So what are you waiting for? Sign up today!