The story of eCommerce in Nigeria would never be complete without recognising Pay on Delivery (PoD), a payment option which over the years has proven to be one of the major pillars of the sector.
Trust has been identified as one of the reasons why shoppers would keep opting to pay cash on delivery of goods purchased online. Some online stores have swayed to adapt to shoppers’ choice while others do otherwise.
Konga over the week revealed that it’s relaunching PoD, starting with Lagos State by August 1, 2018. This is coming barely seven months after the payment option was stopped under the leadership of the former CEO, Shola Adekoya.
This move by Konga.com to reverse its previous position on PoD proves that there’s a future for the option in the eCommerce sector.
Konga.com claims to have had 97% of all orders in major cities delivered on the same day over the last 30 days. Is this enough reason to bring back Pay on Delivery?
According to Konga online division CEO, Nick Imudia, the store has invested in capacities that would allow the company do more than 85% same day delivery of major product categories across Nigeria within the next one year.
This move will definitely increase orders on the platform as well as returned and cancelled orders.
A couple of eCommerce stores in Nigeria still stick to their policy of payment before delivery, considering PoD as a monster that needs to be tamed. As from August 1, there will only be 3 of those — Drinks.ng, PayPorte and Supermart.
Jumia appears not to be putting an end to the payment option in the near future. Jumia Nigeria CEO, Juliet Anamah earlier in the year affirmed the online store’s stand on the payment option, saying that PoD can only be terminated by the shoppers.
Whether the Pay on Delivery option was started as a means to capture the market by early entrants or not, it appears to have come to stay.
Following the killing of a Jumia Nigeria deliveryman in Port Harcourt last year, many have condemned the Pay on Delivery model. But players in the sector can still stick to non-cash-based payment on delivery options in order to safeguard the lives of their staff while also building trust with their shoppers.
Whether Nigeria is a tough market or not, for as long as there’s a trust issue in the nation’s eCommerce space, the future remains bright for Pay on Delivery and irrespective of the excuses for it, it remains a means to increase sales.
Nigerian startups raised $377m in 2019, more than twice what they did in 2018. Find out more when you download the full report.