As part of the @eComAward of Pakistan with @Profitpk we conducted a nationwide survey of the overall eCommerce landscape. Over 14 thousand people answered the survey and the results are as follows:
79% of consumers prefer CoD and when asked why they do so they said --->
Trust was the major issue with 49% (options 2, 3, 5). Followed by accessibility 33% and finally knowing how to pay online at 10%.
63% of eConsumers are willing to do online payments however if they get the first 3-5 deliveries from a online store without any issues.
65% of potential shoppers also check social media before deciding whether to buy from a new shop or not.
64% of the consumers have never purchased anything greater than Rs10k online and 83% of those surveyed placed less than 10 online orders (non-food) every month.
82% of the respondents were between the ages of 18-39 with 53% of those from Karachi or Lahore.
Finally the 44.5% of the respondent had an average household income of 30-150k per month.
I examined the true cost of Cash on Delivery (COD) and found that for a standard 1kg parcel delivered within city it can be as high as 26% (of order value) while credit cards and mobile wallets only cost upto 20% and 18%.
Lets examine the main causes 1/6
At the first step at the time of transaction there are no upfront costs to COD, whereas both credit cards and mobile wallets have your standard MDR
2/6
We have to go further than this though by taking into account the logistics costs. COD deliveries are more expensive than standard deliveries. We assume a standard 1kg parcel delivered within city.
This is the primary reason for COD being more expensive than prepayment