Why Payment on Delivery is Crucial for African eCommerce

Kay Kathambi

— 2 min read
Why Payment on Delivery is Crucial for African eCommerce

Kenya's e-commerce sector is growing rapidly, with revenue of around USD 103 million. While digital shopping is on the rise, payment on delivery (POD) remains a preferred option for many African consumers.

Why Cash on Delivery is Popular in Africa

In Kenya and other parts of Africa, cash is not just common, it's often the most trusted payment method. Consumers prefer POD because it allows them to:

  • Online security concerns.
  • Ensure the product delivered is the one they ordered.
  • Inspect product quality before making a payment.
  • Avoid risks associated with online payments or receiving incorrect goods.
  • Limited access to credit cards.

In regions where card protections are limited, POD offers peace of mind, especially for first-time shoppers who feel more secure paying after receiving their goods.

How ShipShap is Transforming Payment on Delivery

For merchants, managing POD can be complex due to logistical challenges, delayed payments, reconciliation issues, and the risk of failed deliveries. ShipShap simplifies this process by providing a platform that empowers African e-commerce businesses to assign orders, track deliveries in real-time, and reconcile payments effortlessly all through a single, self-serve system.

Here's how it works: The customer orders an item on the website, and the merchant confirms availability of the product then assigns a driver. Drivers can mark orders as picked up, in transit, or delivered. For POD orders, drivers can prompt payment requests, which trigger real-time payment

Benefits of ShipShap’s POD System

By using ShipShap, businesses gain:

  • Improved Cash Flow: With real-time payment updates, merchants can reconcile accounts more efficiently.
  • Enhanced Security: Tracking payments reduces risks like theft or fraud during the delivery process.
  • Increased Transparency: Both merchants and customers can track orders and payments in real time, building trust.
  • Customer Satisfaction: POD offers a risk-free shopping option for African customers, boosting convenience and loyalty.
  • Cost selection: The merchant selects how much a customer is to pay before the delivery is fulfilled.

Building a Customer-Centric E-commerce Experience

As more African consumers embrace online shopping, businesses that offer flexible payment options like POD will attract a larger audience. 

By partnering with ShipShap, merchants can create a smooth, secure, and transparent delivery experience, increasing customer satisfaction and loyalty.

 

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