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The Advantages and Disadvantages of COD

The Advantages and Disadvantages of COD


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What is COD

The term “Cash on Delivery,” or “COD,” refers to a payment method where cash is sent to the recipient after they have made a purchase using a single-page ordering system or by talking on the platform. The seller’s social media, product landing sites, and Videos, posts, and group topics advertise the site. Customers click ads to buy products immediately. The supplier ships the items, the buyer pays, and the seller’s sales model follows. Southeast Asian online shopping uses this method.

COD mode’s benefits and drawbacks

(1) Positives

A bigger audience

With the COD mode, clients who exchange money and commodities but are unsure about the security of online buying can still do so, considerably increasing the pool of prospective customers.

Reduced operating costs

COD requires no complicated website design and is inexpensive. A good landing page can expand the market. The cost of advertising is significantly lower than in the European and American markets. Southeast Asia has more people per advertising dollar.

Limited constraints and high freedom

One page In COD mode, which is exempt from third-party electronic commerce platform requirements, Facebook and other social media platforms drive traffic. If the website is attacked or blocked, a single product’s page reduces the loss and makes the game more adaptive.

2) Negatives

High return percentage

Profit for the seller is mostly based on sign-in rate. The client rejection rate in the COD option is about 50%, which is significantly higher than the prevalent pre-payment mode. Many buyers’ receiving addresses are unknown, resulting in low delivery and high return rates.

Low repurchase percentage

The single-page style is brief, bland, and quick, and it is challenging to build a following. The repurchase rate is typically low since the page display effect of a single-page COD is typically less than that of the actual goods.

High risk and difficult to establish on a bigger scale

If the social media platform’s restrictions change, it may be impossible to register an advertising account or the Pixel may cease working, creating a large single-page COD model.

Prolonged payback term

The COD model has an average payment period of roughly 30 days, regardless of whether it is Taiwan or the six Southeast Asian nations.

How Fulfillmen Can Help You

If you’re looking for ways to enhance your e-commerce solutions, we can help you here at Fulfillmen.

Fulfillmen is the best Chinese fulfillment center. We help e-commerce entrepreneurs from China and all around the world.

We work with e-commerce solutions, logistics, dropshipping, product sourcing, and many more. Just reach us out and we’ll help you with your needs! You can reach us out here.

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