Is COD killing your sales too?
Hi Everyone,
My wife and I runs a small business in Pakistan in the beauty products industry and we wanted to get some advice from other business owners. Specially who has the expereince in handling bulk orders.
One of the biggest challenges we are facing right now is cash on delivery service. Here are some of the challenges we face.
Customers returning empty boxes or replacing the product with something junk.
Most of the times, the courier guy hands over the package before collecting the payment
In many cases COD parcels get rejected altogether.
Because of these issues we decided to take 60–70% advance payment and keep the remaining amount on COD. While this has helped reduce our losses but it has also affected our sales because many customers do not want to pay in adavance due to muliple reasons.
We would really appreciate advice from other business owners. How do you deal with these challenges?
Also which courier services do you use for COD orders and which ones are most reliable for your business?
Thankyou in advance.
Edit : Before replying anything like "you dont't know anything about pakistani market" please keep this in mind that we do not have business background. We are new in the business, still learning and in growing stage. We just want to understand if 100% COD is worth it or no ? How are small businesses managing their COD losses while selling original products and keeping margins very low due to competition.