This means that clients can pay for the merchandise at their door. They can inspect the goods before paying for them in this instance, their credit cards. There are a number of benefits for both the merchant and the customer. As an example, the customer can be sure that the goods are real and the merchant is legitimate. The merchant can likewise be confident that the customer is actual, that the goods are delivered safely, nothing is damaged or lost in transit, and the customer has accepted the goods and therefore are not as likely to return .
Small retailers can do themselves in a local area by scheduling a delivery run a few times each week and reserving delivery appointments with clients. I guess that delivery companies may begin offering this service — processing a charge card on a mobile device — and larger retailers may likewise begin doing this. This is an extension of a”click and collect” service which has a growing popularity in the U.K., wherein consumers buy products online and pick them up in a physical store.
Payment on delivery will be more attractive for those merchants that sell high value items which traditionally have a higher delivery reduction rate, like tablets tablet computers, and computers. It may also be used to increase earnings for products which don’t traditionally sell well on the world wide web, such as jewelry, which shoppers want to see and feel before they purchase.
Another substantial target market for a payment-on-delivery service is clothes. This region of internet retailing suffers from a high return rate as a result of people buying several things, trying them , and then returning those they don’t want. Payment on delivery can eliminate this reduction if the merchant is prepared to wait until the client attempts the clothes on.
The service could remove transit losses, and reduces yields overall (and badly packed returns, specifically ). Additionally, it offers the precious opportunity to speak with clients, to establish a better connection and collect invaluable intelligence, like what they like and do not like, what they’re searching for, what else they may purchase, etc. It could increase your odds of repeat business.
Clearly payment on delivery isn’t acceptable for many businesses and several goods. But do not dismiss it out of hand. You don’t need to deliver daily. You could collect several days worth of orders, to minimize delivery costs. Most clients, properly educated, will be happy to wait a few times in return for a guaranteed, pre-booked delivery slot. For those customers in a hurry, you can always charge a premium for more prompt shipping.
By offering this service for local clients, you have a special offering that may help you sell more.