November 2017
Cash on Delivery Stats
We know you like a thing or two about internal data. Brace yourself, because you are about to know what happens when an online, cashless transactions company (yours truly) realises customers want to pay with Cash on Delivery.
Quick background. Here are some Pros and Cons of why we didn't do COD at launch time—
Pros:
- Build more customer confidence
- Reach more customers
Cons:
- FedEx charges a fee
- Can't track or refund easily
- Rejections cost two-way shipping and fees
Prep work to avoid forseen problems:
- Each order needs email verfication
- Limit first time customers to one order
- Keep a hawk-eye view of abusers who reject orders
Here’s what COD looks like so far—
| Best Cities by Success Rate | |
|---|---|
| Pune | 100% |
| Mumbai | 92% |
| Delhi | 88% |
| Worst Cities by Rejection Rate | |
|---|---|
| Chennai | 67% |
| Hyderabad | 43% |
| Gurgaon & Bangalore | 25% |
| COD Stats (per 1000 orders) | |
|---|---|
| Orders using COD | 32% |
| Rejections | 12% |
| COD fees collected | None19,600 |
| COD fees paid | -None14,000 |
| Rejection cost | -None6,300 |
| Net COD fee income | -None700 |
| Revenue from COD orders | +23% |
To summarize:
- A new set of customers experienced a March Tee
- They came back and paid online more confidently
- Rejection rate needs to be under 10%—ideally 3%
- We may increase COD fees to cover rejections
- We're working on tech to reduce rejection rates
- A few bad apples hurt everyone. An abuse system is being built so these customers aren’t welcome again
How does this compare to your data? This is still work in progress. We're expecting new announcements later this year which should give us (and you) more interesting insight.
Have a great weekend everyone! 😄
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