Infographic with the advantages and disadvantages of cash on delivery.
There are advantages and disadvantages to cash on delivery , so it is essential to analyze the main aspects. With them, you will be able to evaluate whether this alternative is ideal for your business. Take note!
Advantages Disadvantages
Build trust with potential customers. Increases processes in case of returns.
Helps to increase sales rate. Commission payment for collection of products (collection).
Increase the variety of payment methods. Increase in shipping costs.
Increase the level of satisfaction. Risk of fraud.
Improve the shopping experience. Lack of control over the delivery process (when done with third parties)
Allows payment by card and cash. Increased shipping costs if not completed on the first attempt.
Obtain steady cash flow. Last-minute number library cancellations due to product dissatisfaction or problems during the delivery process.
Why is cash on delivery important for a business?
This payment method has become popular in many Latin American countries due to the acceleration of electronic commerce and the lack of trust that still exists in making purchases online.
According to Infobae data , Colombia is the country that most uses cash on delivery ( COD ) in Latin America, followed by Peru and Argentina. The distribution of participation by country was as follows:
Colombia 12%
Peru 10%
Argentina 4%
Mexico 3%
Chile 2%
In these countries, cash on delivery has been a useful tool to reach segments of unbanked buyers or those who are wary of making online payments, making this method a differentiating element when making a purchasing decision.