Cash on delivery: why you should ask for a deposit

Cash on delivery is, by far, the way your customers prefer to pay. They do not know your shop yet, they have already heard a story about a parcel that never arrived, and they want to see the goods before handing over the money. That is a reasonable request.

The problem is what it costs you. A courier paid for a trip that goes nowhere. An item tied up for two days while another customer wanted it. And, in the end, the temptation to stop offering this way of paying altogether.

What a deposit changes

Asking for part of the amount online, before delivery, is not mainly about getting paid sooner. It is about knowing who is serious. A customer who has paid 20 % by Mobile Money picks up when the courier calls.

• The customer keeps what reassures them: they pay most of it on receipt.
• You at least cover the trip if delivery fails.
• Your stock is no longer held up by orders that only existed on paper.

What percentage to ask for

Enough to cover delivery and discourage careless orders, not so much that the customer feels they are paying up front. In practice, aim for 10 to 30 %. Start low, watch your successful delivery rate, adjust.

How to present it

Say it plainly, at checkout: the amount to pay now, the amount the courier will collect, and what happens if the delivery does not take place. A customer who is told the rule beforehand accepts it. A customer who discovers it afterwards feels trapped.

A deposit is not a sign of mistrust. It is what lets you keep offering cash on delivery.

In Komerxe

1. Switch on cash on delivery in the payment settings, and choose the deposit percentage.
2. Allow it zone by zone: your city, yes; the other end of the country, perhaps not.
3. The customer pays the deposit online. The order can go out as soon as it arrives.
4. The delivery note tells the courier the exact amount to collect.
5. If delivery fails, one click releases the stock and cancels the order. You keep the deposit.