For nearly all nations that rely on the internet, the concept of cash on delivery has become the norm when it comes to shopping online. In this payment method, customers pay the vendor/courier directly with cash or credit card after they receive the product. In India, about 83% of consumers prefer cash on delivery to pay for their online purchases.
The advantages of Cash on Delivery (CoD)
Cash on Delivery has become the preferred method of payment in India for a number of reasons. For customers, one benefit of COD is the ability to pay only after receiving their products. This eliminates the risk of losing money. As an example, if you pay online in advance and then the seller fails to deliver, your money remains stuck with the seller. In the case of cash on delivery, there is no such risk.
It is possible to test the product before paying so that everything works correctly. In the event that the product is defective or the outcome is not as expected, the product can always be returned.
Problems with Cash on Delivery (Cod) -
Although Cash on Delivery is great for buyers, it can be problematic for e-commerce businesses and can add to their workload and reduce their profit margins. Sellers can lose margins due to high transaction costs and third-party courier charges when selling online.
Also, there have been cases of fraud with cash on delivery. As a result of the lack of authenticity of the available customer information, frauds are more likely to occur.
Another issue with cash on delivery is that it leaves the seller vulnerable to losses in the event that customers return products without paying. As a seller, you spent all your money and effort delivering the product, but it was eventually replaced. This results in a revenue loss.
The solution to all the CoD problems:
A "Release on Delivery" (ROD) payment service is an alternative to "cash on delivery," as it protects the interests of the merchant and safeguards the rights of the customer.
How does it work? - As part of this system, buyers can choose the RoD payment method and make payments using credit cards, debit cards, or net banking. In turn, the RoD method ensures that the money of the buyer will be totally safe in an escrow account. In this way, the seller becomes confident that the buyer will pay. Only after the buyer gives instruction to the escrow company to release the money upon delivery of the product is the payment released. There is also a dispute resolution team that deals with all product and delivery issues.
It appears that this is a great service that not only protects buyers, but also makes it easy for merchants to convert those who choose cash on delivery due to trust issues to try out online payments safely.
Although Cash on Delivery is great for buyers, it can be problematic for e-commerce businesses and can add to their workload and reduce their profit margins. A "Release on Delivery" (ROD) payment service is an alternative to "cash on delivery," as it protects the interests of the merchant and safeguards the rights of the customer. The RoD method ensures that the money of the buyer will be totally safe in an escrow account. In this way, the seller also becomes confident that the buyer will pay. Only after the buyer specifically orders the escrow company to release the money upon delivery of the product is the payment released.
Digital Escrow Service In India.
Digital escrow services are offered by many companies in India. Among the most trusted is Vouch.
Vouch’s Digital Escrow service is a transparent way for buyers and sellers to build trust and secure a clean transfer of product and payment. Sellers can feel assured that they will be fairly compensated promptly, and buyers will feel confident that their order will be delivered as expected and on schedule. Vouch Digital Escrow keeps you updated and informed at every step of the transaction process till the end. Vouch’s professionals are always available to assist you with all queries that you may have during the entire transaction process.
There is no scope for deceit or fraud since the payments, shipping, delivery, and execution are carried out under the honest and watchful eyes of the Vouch’s professionals. With Vouch, any business transaction becomes transparent, uncomplicated, and hassle-free.
Check back here to learn more about Escrow and how to protect yourself from fraud.
Safety is not just about protecting your credit, debit card number, and UPI accounts. It's about having control of your money till you've received the product or service you bought online!
As you're now aware of the importance of online safety, let's get your transactions secure on Vouch. It's just a click away.