Ecommerce Business owners can face literally anything that comes in their way but there's one thing where they lose their battles. Yes, it is Cash On Delivery Cancellations.
Almost 60% customers in India prefer cash on delivery as the mode of payment. So these order cancellations are a huge loss which has to be borne by the Ecommerce Business itself.
But in this post, I will guide you through how you can reduce this expense by converting your Cash On Delivery orders into Prepaid orders by using this WhatsApp Marketing Strategy.
Most of the customers opt for Cash On Delivery as their payment method because they don't have anything to lose. They haven't paid a single penny to your business so they often tend to cancel their orders. This happens due to various reasons. The best solution here is to make the customers switch their payment method from Cash On Delivery to Prepaid using your WhatsApp Business API.
Read this blog on How to Verify Cash On Delivery Orders Using Your WhatsApp Business API.
So let's first understand who are these customers and why do they choose COD as their payment method.
Customers have a certain philosophy here. People are used to buying from a specific brands, when you ask them to shift to another brand, trust issues do come up.
When the customers don't trust your brand, they would rather have you deliver first and pay later after having recieved their product on their doorstep.
Online business world can be a little scary. Many a times, there are cases when customers fall into the trap of scam and get their accounts hacked or passwords leaked.
These people may also have witnessed their friends or family become victims to online frauds. Factors like these induce a certain type of fear into the customer's mind where they simply don't feel comfortable exposing their bank account details.
These are type of people who choose COD as a payment method for worst reasons.These customers will want a particular product. They will order the similar product from multiple websites.
Then whichever is delivered the earliest to them, they keep it and then cancel all the other ones. This can be a fun game to them because they have nothing to lose but the shipping costs are borne by the businesses which leads to huge losses.
There are 2 ways on how this can be done effectively.
The main reason why customers choose Cash On Delivery is lack of trust in your band. Therefore it is essential to build your brand name.
Your product/ services have to be extremely good and exceptional which will allow your customers to put their trust in your brand.
The best example here is Apple. That company has managed to set up a strong business in a country like India where 60 - 70% people prefer Cash On Delivery for payments.
Apple does not provide its customers with the option of COD, just prepaid and still they have huge number of sales. That's the benchmark you need to set for your business!
Now if you are a new brand and not yet on the level of big businesses, there are options for you too, don't worry! You can persuade your customers into paying online with various offers and discounts.
This is further divided into 2 options.
As shown in the image above, many companies provide their customers with multiple discounts if they choose to pay online, where as anyone opting for Cash On Delivery won't be allowed to enjoy these offers and will need to pay extra money.
Offers attract people and persuades them into paying online. So this strategy is widely used by numerous companies today.
This is where WhatsApp Business API comes into the picture!
So here, you firstly need to verify your customer's phone number and send them a sort of Order Confirmation Message on WhatsApp. The customers will be sent messages like 'The product will be delivered in 5 to 6 days. If you want faster delivery and additional 5 - 10% discount, then you can upgrade to prepaid order.'
This way people click on the button provided which has a brief information about their order. This button will take them to the payment interface where they can purchase online. Once a prepaid order is confirmed, the cash on delivery order is automatically cancelled.
You can also Use Discount Coupons And Pop-Ups To Generate WhatsApp Leads.
My blog on Creating WhatsApp Links And WhatsApp QR Codes With Pre-Filled Custom Messages can also be helpful.
In this model, with the use of WhatsApp Business API, you can incentivize your customers and persuade them into paying online instead of Cash On Delivery. So, No COD, No Cancellations right?
Even though this method won't lead to 100% eradication of Cash On Delivery, it can still make an uptake of 3 to 5% of prepaid orders in your Ecommerce Business. This percentage looks small but can make a huge difference from company to company.
Hope this was an interesting read for you. Do implement this strategy for your business and let us know the incredible results!
Ecommerce Business owners can face literally anything that comes in their way but there's one thing where they lose their battles. Yes, it is Cash On Delivery Cancellations.
Almost 60% customers in India prefer cash on delivery as the mode of payment. So these order cancellations are a huge loss which has to be borne by the Ecommerce Business itself.
But in this post, I will guide you through how you can reduce this expense by converting your Cash On Delivery orders into Prepaid orders by using this WhatsApp Marketing Strategy.
Most of the customers opt for Cash On Delivery as their payment method because they don't have anything to lose. They haven't paid a single penny to your business so they often tend to cancel their orders. This happens due to various reasons. The best solution here is to make the customers switch their payment method from Cash On Delivery to Prepaid using your WhatsApp Business API.
Read this blog on How to Verify Cash On Delivery Orders Using Your WhatsApp Business API.
So let's first understand who are these customers and why do they choose COD as their payment method.
Customers have a certain philosophy here. People are used to buying from a specific brands, when you ask them to shift to another brand, trust issues do come up.
When the customers don't trust your brand, they would rather have you deliver first and pay later after having recieved their product on their doorstep.
Online business world can be a little scary. Many a times, there are cases when customers fall into the trap of scam and get their accounts hacked or passwords leaked.
These people may also have witnessed their friends or family become victims to online frauds. Factors like these induce a certain type of fear into the customer's mind where they simply don't feel comfortable exposing their bank account details.
These are type of people who choose COD as a payment method for worst reasons.These customers will want a particular product. They will order the similar product from multiple websites.
Then whichever is delivered the earliest to them, they keep it and then cancel all the other ones. This can be a fun game to them because they have nothing to lose but the shipping costs are borne by the businesses which leads to huge losses.
There are 2 ways on how this can be done effectively.
The main reason why customers choose Cash On Delivery is lack of trust in your band. Therefore it is essential to build your brand name.
Your product/ services have to be extremely good and exceptional which will allow your customers to put their trust in your brand.
The best example here is Apple. That company has managed to set up a strong business in a country like India where 60 - 70% people prefer Cash On Delivery for payments.
Apple does not provide its customers with the option of COD, just prepaid and still they have huge number of sales. That's the benchmark you need to set for your business!
Now if you are a new brand and not yet on the level of big businesses, there are options for you too, don't worry! You can persuade your customers into paying online with various offers and discounts.
This is further divided into 2 options.
As shown in the image above, many companies provide their customers with multiple discounts if they choose to pay online, where as anyone opting for Cash On Delivery won't be allowed to enjoy these offers and will need to pay extra money.
Offers attract people and persuades them into paying online. So this strategy is widely used by numerous companies today.
This is where WhatsApp Business API comes into the picture!
So here, you firstly need to verify your customer's phone number and send them a sort of Order Confirmation Message on WhatsApp. The customers will be sent messages like 'The product will be delivered in 5 to 6 days. If you want faster delivery and additional 5 - 10% discount, then you can upgrade to prepaid order.'
This way people click on the button provided which has a brief information about their order. This button will take them to the payment interface where they can purchase online. Once a prepaid order is confirmed, the cash on delivery order is automatically cancelled.
You can also Use Discount Coupons And Pop-Ups To Generate WhatsApp Leads.
My blog on Creating WhatsApp Links And WhatsApp QR Codes With Pre-Filled Custom Messages can also be helpful.
In this model, with the use of WhatsApp Business API, you can incentivize your customers and persuade them into paying online instead of Cash On Delivery. So, No COD, No Cancellations right?
Even though this method won't lead to 100% eradication of Cash On Delivery, it can still make an uptake of 3 to 5% of prepaid orders in your Ecommerce Business. This percentage looks small but can make a huge difference from company to company.
Hope this was an interesting read for you. Do implement this strategy for your business and let us know the incredible results!
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Pallikaranai Chennai 600100
© Alpha Marketer. All Rights Reserved.
Plot no.7, Chittibabu Nagar,
Pallikaranai Chennai 600100
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© Alpha Marketer. All Rights Reserved.
