Cash on delivery as the name suggests, is basically waiting for your purchase to be delivered to your door-step before paying any sort of cash for said purchase. It is seen as an alternative to paying for goods online and is a very convenient method for some. It is used in various places worldwide but mostly in third-world and developing countries.
In Nigeria, one could argue that this is by far the most popular kind of online purchase payment method. It is seen as a suitable method for transactions especially from a client’s perspective. I have used it on numerous occasions and can attest to the good side of it. Having carried out several transactions via this method, it is safe to assume that this method is a lot more advantageous for the client than for the seller involved. To buttress my point, I will highlight some advantages and disadvantages of cash on delivery in Nigeria.

Advantages

• One major advantage is the buyer’s peace of mind. Nigeria has earned itself an infamous reputation as one of the more (if not the most) fraudulent countries in the world. As such, it should come as no surprise when its citizens second-guess online transactions that require them putting in their card details. Cash on delivery ensures that the buyer actually sees their purchase and is thoroughly satisfied with it before going through with any payment. It also ensures that their card details and the likes are safe from any fraudsters online who employ social engineering attacks blind to the majority.
• Another advantage of cash on delivery is the fact that one does not actually need to have a bank card for online purchases or even if a card is owned, there is no need to deal with “network” issues from banks. Most Nigerians have had those attempted online transactions that would never go through all because your bank claims that there are network issues. A lot of banks are also slow in delivering cards to the intended recipients and pretty much holds them to ransom regarding online card payments. Cash on delivery is a good work-around for those situations. Operating in a 3rd world country makes this a huge advantage as a significant chunk of the population would much rather carry cash in/at hand to avoid the so called network issues or any form of paperwork that might make the process arduous.

Disadvantages

• A well-known disadvantage is that every seller has to deal with the possibility of a buyer turning down an item brought to their door even if it met their exact specifications. In Nigeria, there is always the probability that the buyer does not believe in paying for an item they do not want, regardless of their commitment and you cannot be over eager in trying to coerce them as it may become an offence if wrongly perceived. This is one reason why some sellers only do cash on delivery to areas in close proximity, where transportation costs are minimum.
• It promotes impulsive spending on the part of the buyer because they believe they can save up to pay in time for delivery. The buyer ends up buying unnecessary items and in the case of them not being able to afford it by the delivery date, we go back to the earlier discussed disadvantage.
• One other problem is the presence of disorganised buyers that do not have cash at hand and keep the delivery drivers on hold to go to the ATM or those who know they will not be home in a short time and still insist that the driver waits for them. This is mostly disadvantageous to the drivers involved in the delivery but it can also be disadvantageous to the buyer especially due to uncertainty of the exact time of delivery meaning that you have to ensure that somebody is present at all times with cash to accept the delivery.
• Finally, taking the country’s current security situation into account, it’s safe to say that cash transactions are no longer as safe as they once were. I have heard of cases where the delivery driver is a robber in disguise or people paying for their goods and then sending thugs to ambush the driver and collect the recently paid cash and other items they can manage to get to. Until the security improves, there is no guarantee that such occurrences will stop. We also have cases where counterfeit money is paid and before it is discovered, it might be too late. In cases like this, even if you get the police involved, there is a chance that nothing will come of it and you might even lose more than the money involved.

Based on the above, It can be seen that the people gaining the most from cash on delivery are the buyers. The sellers maybe only gain satisfaction from the customer’s satisfaction/happiness and thus might recommend them to others. Besides that, the sellers normally get the short end of the stick in that regard.
From my point of view, there has to be balance involved in cash on delivery so both parties can be satisfied and not one party always having to sacrifice peace of mind.
A possible way to achieve this is a method already in use by some online retailers which involved having receiving centres in secure areas where customers can come and pay for their purchases during pick-up akin to buying from a shop. However, this defeats the purpose of doorstep deliveries involved in buying goods online. Also, depending on the location of these centres, there is a chance that with all expenses involved in getting there you can actually spend more than going to a nearby shop and buying at a standard price.
Another way to create balance could be adding a commitment when purchasing online. For example, paying the delivery fee only online and paying the outstanding balance on delivery. Even though there are chances of scams involved, it ensures that the seller does not incur unnecessary delivery costs and reduces any impulse buying or the chances of an item being turned down by the buyer because a monetary commitment has been made.
My advice for anyone involved in online purchases in Nigeria (or anywhere else to be honest) would be:
As a buyer, try to read reviews of the seller or research the business’ legitimacy. One of the key aims of UdobizNG is to make this a possibility as people can currently leave reviews on businesses and as we grow our database, we hope to have all Nigerian businesses registered on here someday so you can easily identify fraudulent businesses.
As a seller, try to research the areas involved in the transaction before accepting to deliver. You can make an excuse that the item is out of stock if you do not feel comfortable doing a cash delivery to certain areas or people. Also advice your delivery driver to take alternate routes if they stumble upon a place or person they are not comfortable with. I am also of the opinion that transactions should be made in the compound but not within the house for safety purposes.
Once more, thank you for reading. Please endeavour to share to/with your friends online.