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Advantages and Disadvantages of Cash on Delivery Application

The cash on delivery system, introduced by e-commerce sites to eliminate insecurity and ensure convenient shopping, has become a catalyst for potential customers concerned about the security of their credit card information. As with any payment system, cash on delivery offers both advantages and disadvantages. In this article, we will discuss the advantages and disadvantages of cash on delivery, a crucial step in establishing trust with customers and used by e-commerce companies.

CONTENTS

Advantages of Cash on Delivery Method

- Advantages for the Seller

Since e-commerce entered our lives, the most difficult obstacle for e-commerce companies to overcome is undoubtedly trust. While e-commerce companies have tried various methods to overcome this problem over time, none have been able to replace cash on delivery. In this context, the biggest advantage of cash on delivery for sellers is that it both eliminates customer concerns about the security of their credit card information and allows potential customers without credit cards to use this service to join the e-commerce ecosystem. In other articles, we've discussed how e-commerce companies are working to encourage repeat customers. Integrating potential customers who haven't shopped on e-commerce sites due to trust issues into the ecosystem and offering them the option of cash on delivery will pave the way for people to purchase their next purchases the same way.

- Advantages for the Buyer

There are many factors that distinguish e-commerce from physical stores. In a physical store, you can see and touch a product, and then make a decision based on that, making a secure purchase. In e-commerce, however, because products are available digitally, the selection process is based on website photos. Seeing or touching the product up close is not possible on e-commerce platforms. The security of the credit card information used during payment is also a concern for customers. With cash on delivery, the product is delivered to the customer's door. The customer has the opportunity to inspect, check, and securely pay, or not. This eliminates customer security concerns and encourages them to shop.

Disadvantages of Cash on Delivery

- Disadvantages for the Seller

Cash on delivery is a more advantageous practice for the customer. However, its disadvantages for the seller are generally:

- Cancellation of the order without reason,

- The orderer is a minor and orders for entertainment purposes,

- The ordered product is delivered to the wrong person and therefore cancelled,

- Undeliverable cargo problems due to incorrect delivery information,

- Order cancellation due to non-payment of the amount due for the product delivered to your door,

- Cancellation of the order due to the customer not being satisfied with the product sent,

And due to many similar problems, the seller may suffer serious losses.

- Disadvantages for the Buyer

Cash on delivery is typically managed by carriers. These companies, acting as intermediaries, charge an additional fee for cash on delivery, which is then passed on to the buyer. The buyer sees and confirms the cost of this transaction on the order screen.

Regardless of the payment method, if the ordered product arrives at the address via courier and the person in charge is not available, it will be taken to a branch. Depending on each courier company's policy, the product will be held at the branch and returned to the seller if it still isn't picked up. In this case, the buyer will be forced to reorder the product they need and endure the additional time.

Comwize, Türkiye's first and only e-commerce ERP software, supports payment at the door application in addition to the various payment infrastructures it offers.

We've tried to share the information you might need about the advantages and disadvantages of cash on delivery. If you'd like to learn more about Comwize, please contact us.

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