Since the introduction of the Cash on Delivery option, online merchants have experienced increased opportunities for selling their products. Cash on Delivery allows buyers to choose to cancel the purchase when the item arrives at their address, giving them the assurance that the seller is not playing with the product they are about to sell.
This is particularly helpful in addressing buyer concerns about online purchases not matching the product photos due to the nature of online shopping, where the items cannot be physically seen or touched. As a result, Cash on Delivery quickly became popular as a method of payment.
With Cash On Delivery option, people living in remote areas in Indonesia can make online purchases on marketplaces, even if they don't have a bank account or other electronic payment methods, as payments can be made in cash. With marketplace apps installed on their gadgets, all they need to do is prepare the cash when the item arrives at their address.
However, there are some drawbacks that online merchants face when offering Cash on Delivery. One of them is the possibility of order cancellations after the item has been shipped, resulting in returns to the seller. Sellers also need to anticipate the possibility of the returned item being in a different condition from its original state or, worse, not being returned at all due to various factors.
Currently, selling with COD is possible on Lazada, typically using Lazada's own delivery service or Lazada Express, as well as on Shopee, which usually utilizes Shopee's own delivery service or Shopee Express and JNT. In both marketplaces, buyers and sellers cannot choose the delivery service as Lazada and Shopee decide it for them. For sales via Tiktok, COD service is available with JNT as the delivery partner.
What about online merchants who don't use marketplaces, for example, those who sell through Instagram, Facebook, or WhatsApp? There are several companies outside the marketplace that offer COD platforms, such as mengantar, kiriminaja, orderonline, Lincah, and others. This allows sellers to have more options for delivery services, as Cash On Delivery is also available through JNE, Sicepat, SAP Express, IDExpress, Tiki, and Pos Indonesia on these platforms.
Cash On Delivery Vectors by Vecteezy
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