If you have been following the news about our CPA offers (which we hope you did through our website and weekly newsletters), you must have noticed that we started adding cash-on-delivery offers. How will you benefit from cash-on-delivery as compared to straight sale? What are the peculiarities of COD offers? In this short post, we will try to answer these questions as succinctly and informatively as possible.
Cash-on-delivery (also referred to as collection-on-delivery) is a product purchase scheme where a customer pays for the product after it has been delivered. To order, a customer has to submit only a phone number, and then a call center agent will call to confirm the order. Even though there is a “cash” part in the name, the payment can in fact be made using a few options including certified checks or money orders.
The COD has been created to allow ordering without providing credit card details and to add security, which is its primary benefit. We all know the sequence – fewer form fields means fewer abandoned carts, which in turn means more sales.
But there is also another major benefit – the COD option is available for countries where there is no infrastructure for credit card payments. In other words, Tier-2 countries that are less competitive markets. Lower competition means more opportunities for you as a performance marketer, especially if you are only starting out.
Here is the tricky part: the conversion occurs when a customer confirms the order via phone, which allows for some time between ordering and confirming to change their mind. This removes impulse buyers from your target audience.
On the other hand, when there are multiple form fields to fill out, what kind of spontaneity in buying can we be talking about?
On the security end, customers are more inclined to buy from a company, especially one they know nothing about, when there is a possibility to check the product before paying. The lack of online transaction also means no possibility of identity theft and other credit card manipulations.
As always, the choice will depend on your traffic, goals, and offers. If you are going strong on the Tier-1 market, then there is no reason to use COD offers. If, however, you are targeting less competitive geos (Latin America, Asia, etc.), cash-on-delivery might be just what you need to have a stable flow of orders.
For your convenience, here are a few of the COD offers we currently have:
And of course – don’t hesitate to ask your affiliate manager for support!