How to add cash on delivery feature to a small business?


The e-commerce industry is booming, and the competition is increasing every day. Being one of the most optimistic business sectors, the e-commerce and logistics industry is coming up with new ideas every day. One of them being the option of cash on delivery. Be it a small or large scale business, different companies are making the option of COD available to their customers. This is not only helping them widen their territory but is also helping them establish their presence in this virtual space.

What is Cash on Delivery?

Cash on delivery is one of the most popular forms of payment that is usually opted for by the customer while purchasing something online. Through this, you don’t need to enter any card details, and nor do you need to own one. You can place the order any time you want and make the payment in cash after you receive the product in your hand. This form of payment is extremely popular as it develops the customer’s trust and allows them to stay confident about their purchase. Thus cash on delivery is an extremely effective option if you want to increase your sales online.

How does this process work?

The process of Cash on Delivery work in a very simple way. Whenever an order is placed with the option of cash on delivery, the logistics takes care of the entire shipment process. The delivery boys collect the invoices of the consignment and go out for delivery. At the end of the day, the collected cash is deposited to their local office branch.

Benefits of the COD

Cash on delivery is an extremely favourable method for both the buyer and the seller. The process makes cash handling simple for the retailers and makes it easier for the customers to make purchases as well. It also allows a physical verification of the product which is extremely important for the customers. Therefore it becomes convenient for all the customers to return or replace the products during any sort of defect.

The process of adding cash on delivery to a small business

The option of cash on delivery can also be considered good if you are delivering products in bulk. So if you have got multiple drop-offs, even then also your customers will be willing to wait, since their money is secure. Through this blog, we are going to walk your way through the ways you can set up cash on delivery options for small businesses. Read on…

Make a list

Whenever you get your orders from your clients, collect them and make a proper document, where you have the list of the customers who have chosen the option of cash on delivery. This way, there will be less confusion and you won’t miss out on anyone.

Label it

Once the order is placed, you as a logistics company are supposed to box it properly and label them the right way. This will help the drivers to get familiar with the proper address. Add your pick up and drop location to avoid internal logistics confusion.

Make forms for your consignments

Make proper forms and labels of the items which are ordered with the option of cash on delivery. This will ease cash handling. Also, make sure you schedule your delivery timings to avoid any delays.

Do it according to the location

Segregate your products based on the delivery location. Along with marking them in your box, also keep a correct record to make sure that the item has boarded the right truck. Else, the product might get misrouted and you might have to compensate for the loss.

Write a note

Make proper notes for the drivers, to ensure the right delivery. Ask them to keep you updated with the location and the delivery status. Track them en route via your company’s app.

Make a proper delivery

After the product reaches its target location, let your delivery boy take care of it from there. Once they deliver the order and receive the payment, ask them to update it for you. Then ask your delivery guy to deposit the money to their nearby office branch and collect their delivery fee.

Efficient working with cash on delivery

Now that it is clear how to set up your cash on delivery for small businesses, let’s talk about the work process involved behind the same. Every e-commerce company either has its own logistics or hires a third party logistics for its product delivery. These logistics are the most important people in the entire process, as the successful order completion depends on them. After being sourced, the invoice or challan to brought back to the retailer after the delivery along with the money received. The delivery boy who is authorized to get the cash for you is properly trained. After collecting the invoice amount, he deposits it in his office. The logistics company, in turn, hand over the cash to the supplier or e-Commerce company after deducting handling charges. Finally, at the end of the entire process, the money reaches the seller.

Thus to elucidate further, it can be said that cash on delivery is a pretty fair and trustworthy form of payment. It is extremely suitable for first time buyers. So whether your business is big or small, you can always keep it as an option in order to gain bigger popularity in this business industry.

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