Cash on delivery is the method of payment
that allows customers to purchase products on a company’s website or make
orders via phone and pay for them upon delivery on their doorstep or office,
this form of business is as old as 1635 in England but in Kenya, it has only
began taking shape and could possibly be the recipe of Kenyan businesses.
According to JUMIA,
Kenya’s No. 1 online retailer Cash on delivery accounts for over 55% of its
transactions in Nairobi and Mombasa, the two cities the company offers the mode
of payment. Parinaz Firozi, MD Jumia Kenya says Cash on delivery has helped the
company acquire new customers.
“Over 60% of our customer acquisition has
been through cash on delivery. There is zero risk for the customer since they
only pay for the product if they like it, there are no cost implications if
they reject the product, the delivery man just takes it back. Its stress free,”
Firozi adds.
In a country where credit card penetration
remains a major headache for financial institutions and the government with
several flopped initiatives, Mobile money transfer remains the alternative.
