At first glance, cash-on-delivery (COD) may not look as a relevant payment method for international online stores. Returns and management costs, which can be affordable to e-commerce companies operating domestically, could be out of reach for those operating from abroad, as detailed in our study.
The first experiments in this field, however, have shown promising results. While confirming that the returns rate will jump after the introduction of the COD option, they have also shown a dramatic increase in sales volume. An international online retailer partnering with shipment company SPSR thus saw its sales more than double (from $320,000 to $800,000) in six months while the returns rate did not reach 9%.
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