Cash on Delivery on Shopee: A boon to Sellers

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Shopee is a leading e-commerce platform in Southeast Asia, with a presence in Singapore, Malaysia, Thailand, Indonesia, Vietnam, the Philippines, Taiwan, and Brazil. It offers a wide variety of products, including electronics, fashion, homeware, and beauty. The region has a rising demographic that prefers cash on delivery as a payment method for e-commerce transactions. 

To tap into this large section of consumers, Shopee offers a cash-on-delivery (COD) option, allowing buyers to pay for their purchases after the order has been delivered. In this article, we will discuss the benefits of COD for Shopee sellers and how to activate COD on Shopee. We will also provide some tips for selling more on Shopee with COD.

What Is the Meaning of Cash on Delivery?

Cash on delivery (COD) is a popular payment method in Southeast Asia, where buyers pay for their purchases in cash upon delivery. This method offers convenience and flexibility for buyers, as it eliminates the need to provide upfront payment information or have a credit card. 

COD is particularly appealing in Southeast Asia due to the region’s unique buyer profile, where roughly 50% of the population prefers to use cash as their primary mode of payment.

For Shopee sellers, offering COD can be a valuable strategy to attract more buyers and boost sales. By enabling the COD option, sellers can cater to a wider range of customers, including those who are hesitant to provide online payment details or those who prefer the security and convenience of paying in cash.

In addition to convenience and flexibility, COD also offers a sense of security for buyers, as they can inspect the product before making the payment. This can be particularly reassuring for buyers purchasing high-value items or those who have had negative experiences with online payments in the past.

Overall, COD is a valuable payment option that Shopee sellers should consider offering to their customers. By enabling COD, sellers can expand their reach, attract new buyers, and boost sales.

How Does Cash on Delivery Work in Shopee?

Cash on delivery (COD) is a simple and convenient payment method widely used in Southeast Asia, including on Shopee. Sellers can activate COD for their products, allowing buyers to pay in cash upon delivery. This payment option eliminates the need for buyers to provide upfront payment information and offers a sense of security.

Here’s a breakdown of how COD works on Shopee:

  1. Order Placement and COD Selection: Buyers browse through Shopee’s extensive product catalogue, select their desired items, and proceed to checkout. During the checkout process, they choose COD as their preferred payment method.
  2. Order Processing and Shipping: Once the order is placed, Shopee’s efficient logistics partners or the seller’s 3PL pick up, package, and ship the items to the buyer’s specified address.
  3. Delivery and Payment Collection: Upon delivery, the buyer inspects the items to ensure they are as described and in good condition. If satisfied, they pay the total order amount in cash to the courier.
  4. Payment Processing and Seller Disbursement: Shopee receives the collected payment, processes it through its secure payment gateway, and transfers the funds to the seller’s account.
  5. Order Completion and Feedback: After receiving the payment, Shopee marks the order as complete, and buyers can provide feedback on their shopping experience.

Limits and exceptions for CoD orders

Shopee imposes certain limits and exceptions for COD orders to ensure smooth operations and minimise risks. These limitations may include:

  1. Order Value: COD orders are typically limited to a specific maximum order value. This will usually depend on the seller’s location and Shopee’s policies in that location.
  2. Product Categories: Certain product categories may be excluded from COD eligibility due to their nature or potential for higher return rates.

How to Activate COD on Shopee for Stores

Enabling cash on delivery (COD) for your entire Shopee store is a straightforward process that can be done through the Shopee app or Seller Center website. Here’s a step-by-step guide for both methods:

  1. Access Seller Center: Open the Shopee app and navigate to the “Seller Center” section.
  2. Select Shipping Settings: From the Seller Center menu, locate and select the “Shipping Settings” option.
  3. Choose COD-Supported Shipping Channels: Identify the shipping channels that support COD and enable the “Cash on Delivery” option for those channels.
  4. Save Changes: Once you’ve selected the desired shipping channels, click the “Save” button to apply the changes and activate COD for your store.

Enabling COD for specific products within your Shopee store allows you to tailor the payment method to individual products based on your preferences. Here’s how to do it:

  1. Access Seller Center: Log in to your Shopee Seller Center account using your credentials.
  2. Navigate to Settings: Click on the “Settings” option located in the top menu bar.
  3. Select Shipping Settings: From the dropdown menu under Settings, choose the “Shipping Settings” option.
  4. Enable COD for Specific Products: Locate the product listing for which you want to activate COD. Under the shipping settings for that product, enable the “Cash on Delivery” option.
  5. Save Changes: After enabling COD for the desired products, click the “Save” button to apply the changes and activate COD for those specific items.

Benefits of Cash on Delivery

Offering cash on delivery (COD) as a payment method for your Shopee store presents a plethora of advantages, not only for buyers but also for sellers. By enabling COD, you can open doors to a broader customer base, enhance buyer trust, and potentially boost your sales. Let’s delve into the specific benefits that COD brings to Shopee sellers:

Lowered Cost

COD eliminates the need for sellers to invest in online payment gateways or credit card processing fees, which can be costly, especially for new businesses. By accepting COD payments, sellers can save on these expenses and redirect their resources towards other aspects of their business.

Get Featured for Extra Exposure & Boost Sales

Shopee often features COD listings prominently on its platform, giving COD-enabled products greater visibility and exposure to potential buyers. This enhanced visibility can lead to increased traffic to your product listings and potentially boost sales.

Bigger Chance to Win Buyers Trust

COD offers a sense of security and convenience for buyers, as they can inspect the product before making the payment. This can be particularly reassuring for buyers purchasing high-value items when they shop from an e-commerce seller on the platform for the first time or those who have had negative experiences with online payments in the past. By offering COD, you can build trust with your customers and encourage them to make purchases with confidence.

Free Returns

Shopee offers free returns for COD orders, protecting buyers and potentially reducing return rates for sellers. This policy helps alleviate concerns about returns and encourages buyers to try new products without worrying about additional costs.

How Shopee Protects Sellers from COD-related Fraud or Non-Payment

Shopee prioritises the protection of its sellers and implements robust measures to mitigate COD-related fraud or non-payment. These measures aim to ensure fair transactions and safeguard sellers from financial losses.

When a buyer rejects the order after opening the parcel:

In instances where buyers reject the goods after opening the parcels, Shopee has a well-defined process to address such situations. Sellers can initiate a return request through the Seller Center, providing clear reasons for the return. Shopee will then review the request and, if valid, initiate the return process. The seller will be reimbursed for the shipping costs, and the returned product will be subjected to a thorough inspection.

When a buyer refuses to pay for the order:

If a buyer refuses to pay for a COD order upon delivery, the courier will return the item to the seller. The seller will not incur any additional shipping fees for the returned item. However, the seller will not receive the payment for the order.

How Shopee helps minimise non-fraudulent returns:

To minimise buyer rejection and non-fraudulent returns (NFR), Shopee encourages sellers to provide accurate product descriptions, high-quality images, and clear specifications. Sellers should also ensure that the products are packaged securely and arrive in good condition. Additionally, sellers can proactively communicate with buyers to address any concerns or questions before the order is shipped.

Moreover, when a buyer rejects a COD order or a return request is approved, Shopee will initiate the returns process. The courier will collect the returned item and deliver it back to the seller. Once the seller receives the returned item, Shopee will process the refund and credit the buyer’s account accordingly. For COD order refusals, the seller will not receive any payment, but they will not incur any additional shipping fees.

To Wrap Up

Cash on Delivery (COD) is a popular payment option in Southeast Asia, offering convenience and flexibility for buyers. Shopee sellers can capitalise on this preference for cash payments by enabling COD for their products, catering to a wider customer base, and potentially boosting sales. 

However, it is crucial to carefully evaluate the pros and cons of COD and implement appropriate strategies to mitigate risks and maximise the benefits of this payment method. By understanding the COD process, activating COD for stores and products, and leveraging Shopee’s seller protection measures, Shopee sellers can effectively harness the power of COD and achieve success in the e-commerce marketplace.

When is Cash-on-Delivery Available applicable?

COD is available for selected products and sellers on Shopee. Sellers must meet certain eligibility criteria, such as a good seller rating and a consistent order fulfilment record.

What is the difference between COD and other payment methods like credit cards or e-wallets?

COD allows buyers to pay for their orders in cash upon delivery, while credit cards and e-wallets require upfront payment information. COD offers convenience and flexibility for buyers who prefer to pay in cash.

What are the eligibility requirements for activating COD on Shopee?

To activate COD on Shopee, sellers must have a Shopee store in good standing, meet Shopee’s payment processing guidelines, and have a good seller rating.

Are there any additional fees for COD orders?

There are no additional fees for COD orders on Shopee. The seller receives the full order amount minus the standard Shopee commission.

What if a buyer refuses to pay for a COD order upon delivery?

If a buyer refuses to pay for a COD order upon delivery, the courier will return the item to the seller. The seller may incur additional shipping fees for the returned item.

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