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Mastering Cash on Delivery: Setting Up a COD Store with GemPages and Releasit COD
eCommerce in Latin America is experiencing unprecedented growth. According to Statista, online retail sales were $272 billion US dollars in 2023, and the number of digital shoppers is forecasted to soar 44 percent by 2029.
This boom is being fueled by countries like Colombia, Brazil, Mexico, and Argentina, where the number of online shoppers is skyrocketing. Thus, online shopping is becoming more accessible and convenient due to improvements in internet access and the efficiency of logistics and payment options.
When it comes to payment methods, the landscape is shifting. Though credit and debit cards are becoming more popular for online transactions, Cash on Delivery (COD) is still a go-to choice for many.
That’s where Releasit COD Form and Upsells comes in - a Shopify app that allows customers to place COD orders with just one click. With 5,000 active users, it’s already making waves.
This blog post will cover an overview of the COD payment and show you how to create COD order forms using Releasit and GemPages.
Let’s delve in!
What is Cash on Delivery (COD)?
Cash on Delivery (COD), also known as collect on delivery, is a payment method in which customers pay for their purchase when it is delivered rather than upfront during the online checkout process.
This method is popular in regions where trust in online payments is low or where access to banking services is limited.
The estimated transactional value of Cash on Delivery (COD) varies by country. (Source: eHub)
The popularity of COD is expected to keep growing, especially in emerging markets. According to Asendia, the global COD market will reach $578.4 billion by 2025, up from $267.5 billion in 2020. The report also indicates that the COD market is expected to grow at a compound annual growth rate (CAGR) of 16.2% between 2020 and 2025.
Learn more: What is Shop Pay and Is It Safe?
How Cash on Delivery Works
- Place an Order: The customer orders products online, over the phone, or in-store. They might pay for shipping or a deposit upfront, but the cost of the goods isn’t charged yet.
- Accept or Return Delivery: When the shipment arrives, the customer decides whether to accept the delivery or return it. They can keep all, some, or none of the items.
- Make or Decline COD Payment: If the customer chooses to keep the items, they then make the payment. Some merchants give a specific time frame for customers to make this decision.
- Select Payment Method: To finalize the purchase, the customer selects a payment method. Depending on the merchant, this could be a credit or debit card, cash, check, or even a mobile wallet. Payment options vary so that customers may have different choices.
- Complete the Sale: After the customer pays for the items they decide to keep, usually through the eCommerce platform, the sale is finalized.
Pro Tip: Using different systems for your online and retail stores can lead to inventory discrepancies. Regular inventory checks help ensure that stock levels match across all platforms, preventing potential issues.
Cash on Delivery (COD) and Its Advantages
COD offers many benefits, making it an appealing option for both consumers and sellers. Let’s take a detailed look at COD payment and its benefits.
For Consumers
“For Indian consumers, COD is the most preferred payment method for online shopping. It allows consumers to pay when the correct order is received”. Moreover, COD also:
- Reduced Risk of Fraud: Consumers don't have to provide payment details online, reducing the risk of credit card fraud or identity theft.
- Increased Trust: COD can build trust, especially for new or less-known online retailers, as customers can inspect the product before making payment.
- No Upfront Payment: Consumers can avoid pre-paying for items, which is particularly appealing if they are unsure about the seller's reliability or the quality of the product.
- Budget Management: COD allows customers to manage their cash flow better, as they can pay at delivery time rather than having a payment deducted from their account immediately.
For Businesses
- Increased Conversion Rates: Offering COD can lead to higher conversion rates, as it reduces the barriers to completing a purchase. Consumers may be more likely to finalize their order if they know they can pay upon delivery.
- Reduced Cart Abandonment: COD can help reduce cart abandonment rates. Shoppers might abandon their cart if they are uncomfortable with online payment methods, so COD can make the purchase more appealing.
- Competitive Edge: Businesses that offer COD can stand out from competitors who only accept online payments, potentially attracting more customers.
- Access to a Larger Market: COD is especially useful in regions where online payment methods are less common or trusted. It allows businesses to tap into these markets and cater to a broader audience.
- Lower Transaction Fees: Unlike online payments, which often involve transaction fees from payment gateways, COD doesn't have these associated costs, which can be beneficial for businesses.
- Improved Customer Relations: By offering a payment method that aligns with customers' preferences and trust levels, businesses can enhance customer satisfaction and loyalty.
Learn more:
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Releasit COD and GemPages: A Perfect Shopify App Stack for Launch
Use Releasit COD Forms and Upsell with GemPages
Using Releasit’s COD Form and Upsells along with GemPages creates a powerful combination for launching eCommerce businesses, effectively catering to various consumer payment preferences.
About Releasit’s COD Form and Upsells
Releasit COD Form and Upsells is an application designed to streamline the Cash on Delivery process for eCommerce businesses. It integrates seamlessly with Shopify stores, allowing sellers to manage COD orders efficiently. With a 5-star rating from 4,402 reviews, Releasit is clearly a favorite in the Shopify community. Users seem to appreciate its customization options and the ease of placing COD orders, which greatly enhances the shopping experience.
Key Features:
- Fully customizable order form and layout (Popup or Embedded) with custom fields
- Add Upsells (Pre/Post-purchase and One-Tick), Quantity Offers and Downsells
- Track events automatically with Facebook, TikTok, Google, Pinterest, Snapchat
- Use Google Sheets, Google Autocomplete, discounts and abandoned checkouts
- Verify phone numbers with OTP, limit postal codes, block IP addresses
Selling COD with GemPages and Releasit COD
Combining GemPages with Releasit COD allows you to create a seamless and attractive checkout experience for your customers opting for COD. Here’s a general guide to help you through the process:
Install Releasit App:
Go to the Shopify App Store and install Releasit COD Form & Upsells if you haven’t already.
Set up Releasit COD Form & Upsells with GemPages V7
Step 1: Once you have installed the app, click “Open theme” to enable the app on your Shopify store.
Step 2: Activate the app embed by clicking the turn-on button as shown below.
Step 3: Open the app and edit COD form in the Form Designer session
Step 4: Go to GemPages Editor, drag and drop Releasit COD Form & Upsells element to the desired position.
Step 5: Save and Publish the page
Before:
After:
- Custom Fields: If you need custom fields (e.g., for COD instructions), ensure they are included in your GemPages form and are passed correctly to Shopify.
- Tracking and Analytics: Use Shopify's analytics and any additional tracking features in GemPages to monitor the performance of your landing pages and COD orders.
Learn from the Best: Flipkart
Meet Flipkart - one of India’s leading eCommerce platforms. They offer a wide range of products, from electronics and fashion to home essentials and groceries.
Launched in 2007, Flipkart has become a household name in India, thanks in part to its customer-friendly policies, diverse product range, and innovative payment options, including Cash on Delivery (COD).
Learn how Flipkart - Leading eCommerce platform succeeds with their COD payment. (Source: Flipkart)
Flipkart recognized early on that COD would be a crucial payment method for the Indian market, where a significant portion of the population was either unbanked or wary of online transactions. The company has continually optimized its COD process to enhance customer convenience and trust.
Steps Taken:
- Simplified Checkout Process: Flipkart streamlined its checkout process to make COD a prominent and easily selectable option. Customers could choose COD at the payment stage with a simple click.
- Automatic Order Confirmation: Orders placed with COD were automatically confirmed to ensure prompt processing and delivery.
- Flexible Delivery Scheduling: Flipkart allowed customers to choose their preferred delivery times, enhancing convenience.
- Real-Time Order Tracking: Customers could track their orders in real-time, providing transparency and building trust in the delivery process.
- Wide Geographic Coverage: Flipkart extended its COD option to most pin codes across India, ensuring that even customers in remote areas could benefit from this payment method.
Says Sachin Bansal: “Retail spending leans heavily towards cash, and in India the online payment systems are not very mature. This deters people who are more comfortable with paying cash on delivery.” And with COD, Flipkart has hit jackpot.
When the company introduced Cash on Delivery (CoD), it quickly attracted customers from rural areas, driving 30 percent of sales within just two months. Fast forward five years, and COD has become a powerhouse, accounting for 80 percent of Flipkart's total orders.
As online payment methods become more secure and widespread, there is an ongoing debate about the future of COD. However, it is unlikely that COD will be entirely phased out.
In regions with a significant number of unbanked individuals or where trust in online payments is low, COD will continue to be a crucial payment method.
Learn more: 10+ Top Trending Niches in eCommerce [with Statistics] - 2024
Wrapping Up
In today's eCommerce landscape, offering a Cash on Delivery (COD) option can be a game-changer, especially for customers who prefer or rely on paying in cash. By incorporating COD into your payment options, you can reach a broader audience and reduce cart abandonment, helping to boost your sales.
Using Releasit COD Form & Upsells and GemPages together, you're not just adding a payment option - you're enhancing the overall shopping experience, building trust, and making your store more accessible to everyone. Embrace the COD payment method, and watch as it helps your business grow.
If you encounter any issues, don't hesitate to contact us via Live chat or email @support@gempages.help
FAQs about Cash on Delivery (COD)
