Why business owners should stop taking cash on delivery

Some people prefer to pay in cash for goods on delivery.  - File photo by Faith Ayoung
Some people prefer to pay in cash for goods on delivery. - File photo by Faith Ayoung

In the age of digital commerce, relying on cash on delivery can be a risky business strategy. Business owners who continue to use cash on delivery expose themselves to unnecessary risks and inefficiencies.

Instead, embracing digital payment solutions can streamline operations, secure payments upfront, and enhance customer satisfaction.

Here's why and how you should shift away from cash on delivery.

Risks of cash on delivery

Sending products without receiving payment first is a gamble that no modern business should take. It increases the risk of non-payment and fraud, puts a strain on cash flow, and can lead to wasted resources, especially if dealing with customised products. Moreover, it forces businesses to bear the brunt of delivery logistics without any assurance of payment. Over the past couple of weeks, we have seen many business owners taking to social media to rant online about customers and why they do not offer cash on delivery, then going into their situations with customers.

On the flip side, there are many customers who talk about not trusting businesses to deliver their goods and that’s why they prefer cash on delivery. To me this is probably the silliest point of view because why are you doing business with anybody who you don’t trust? I won’t support any business that seems shady and if I feel like you wouldn’t deliver my product after I have paid for it, my thoughts are that I would probably have other issues with your business and therefore only conduct business with organisations I trust.

We shop online on Amazon, Walmart, e-Bay, etc and pay ahead of time because of trust, so local businesses need to do better at building trust, if they want more people to pay ahead of time.

Digital payment solutions: Secure and efficient

Businesses can utilise various digital payment platforms that allow customers to pay before products are dispatched. Services like Figaro offer packages where businesses can send payment buttons via social media or email. Customers click on these links and complete their purchases securely online. Similarly, banking solutions such as Scotiabank eCommerce Plus and Republic Bank ePay offer comparable features, FCB Easy Biz enabling businesses to send out payment links effectively.


Digital payment solutions are not just limited to businesses with websites; they can be easily implemented via social media or email. Platforms like WiPay allow business owners to create digital invoices, choose the currency, and decide who bears the transaction fees. This flexibility ensures that businesses can cater to diverse customer needs while maintaining control over their payment processes.

Leveraging courier services for enhanced delivery

Incorporating reliable courier services can further streamline the delivery process. Companies like CSF Couriers and O-Deliver take charge of collecting and delivering packages. As a business, you can pass the delivery fee to the customer, who would gladly be willing to pay the fee fort the convenience or you can designate a free location for pickup. This setup not only optimises delivery operations but also ensures that businesses do not incur additional expenses.

Raising business standards

The move to pre-payment systems is about more than just efficiency; it's about setting higher standards and teaching customers how to engage with your business. Implementing such systems shows professionalism and commitment to quality service, potentially weeding out non-serious customers and reducing the headache of follow-ups and disputes. If you have a brick and mortar store, you can still accept cash in your store but this article is for those specifically engaging in cash on delivery.

Solutions for cash-preferring customers

For customers still preferring cash transactions, solutions like Zoho Invoice and PayWise can facilitate cash payments securely before dispatch. Zoho Invoice allows businesses to send digital invoices with banking details included, enabling customers to make deposits directly at banks. PayWise expands this functionality by allowing cash payments at designated agents nationwide, which are then transferred to the business’s bank account.

By setting up these systems, businesses can accommodate traditional payment preferences while securing funds in advance. This approach not only mitigates risks but also respects customer habits without compromising business integrity.

Transitioning from cash on delivery to advanced payment methods is crucial for modern businesses aiming to thrive in a competitive marketplace. By adopting digital payment solutions and integrating efficient courier services, businesses can enhance their operational efficiency, secure payments upfront, and set a standard of professionalism that attracts serious customers. While this shift may initially seem daunting, the long-term benefits of stability, security, and customer satisfaction far outweigh the temporary challenges of adjustment. If you are a customer and don’t trust a business to deliver your goods with pre-payment, your solution is simple...Only do business with those you trust!

Keron Rose is a digital strategist who works with businesses to build their digital presence and monetise their platforms. Learn more at KeronRose.com or listen to the Digipreneur FM podcast on Apple podcast, Spotify, or Google podcasts.


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