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Cash On Delivery - Payment Method Fees Option or Fee Calculator
Hi BO team/@Lawrence,
I'm writing to request a function - CoD fee calculator.
Cash on Delivery is one of (if not THE) most popular payment option in most of Eastern Europe. Even international couriers in the region offer this option, as it is so prevalent in this part of Europe.
In Bulgaria, the post has a 3% market share of deliveries and the couriers are dominating the market, as only they allow CoD payment.
On my whitelabel, i have only received 2 local orders with a different payment method. Prior to enabling it, i barely received any local orders, as consumers in this part of the world are very skeptical of online payments.
This has lead us to a big issue - muuuch higher rate of returns. One of the main reasons for it is that a lot of the consumers are not aware that couriers charge a fee for this service. So when they select this payment option, they are hit with a 1.5-2.5% fee on their total order value, on top of the delivery fee. They cannot see this on our whitelabel or brickowl store, as there is no option to automatically calculate it prior to ordering.
I assume this not an option, as many stores use it on other competing platforms to add additional fees, which are against the ToS of Paypal, for example.
For these reasons, I'm asking the team to add the option 'Payment method fees' (or something similar), that allows %-based (based on payment method - cash or card, as cars payments cost 2.5% and cash costs 1.5% of order toral) and flat fees associated with a particular payment method, based on 'order total' and/or other options (not sure if it works in differently in other large markets where this is popular, such as Hungary, Poland, Czechia, Romania, Greece).
It benefits the end-consumer to know how much exactly they are going to pay upon receipt of the item and would lead to less cancelled orders/retuens, which would benefit both Brickowl and the sellers on Brickowl - overall win-win. Less returns=less environmental waste and polution.
I'm open to any and all questions you might have.
Thanks in advance for your time.
Sincerely,
Viktor
I'm writing to request a function - CoD fee calculator.
Cash on Delivery is one of (if not THE) most popular payment option in most of Eastern Europe. Even international couriers in the region offer this option, as it is so prevalent in this part of Europe.
In Bulgaria, the post has a 3% market share of deliveries and the couriers are dominating the market, as only they allow CoD payment.
On my whitelabel, i have only received 2 local orders with a different payment method. Prior to enabling it, i barely received any local orders, as consumers in this part of the world are very skeptical of online payments.
This has lead us to a big issue - muuuch higher rate of returns. One of the main reasons for it is that a lot of the consumers are not aware that couriers charge a fee for this service. So when they select this payment option, they are hit with a 1.5-2.5% fee on their total order value, on top of the delivery fee. They cannot see this on our whitelabel or brickowl store, as there is no option to automatically calculate it prior to ordering.
I assume this not an option, as many stores use it on other competing platforms to add additional fees, which are against the ToS of Paypal, for example.
For these reasons, I'm asking the team to add the option 'Payment method fees' (or something similar), that allows %-based (based on payment method - cash or card, as cars payments cost 2.5% and cash costs 1.5% of order toral) and flat fees associated with a particular payment method, based on 'order total' and/or other options (not sure if it works in differently in other large markets where this is popular, such as Hungary, Poland, Czechia, Romania, Greece).
It benefits the end-consumer to know how much exactly they are going to pay upon receipt of the item and would lead to less cancelled orders/retuens, which would benefit both Brickowl and the sellers on Brickowl - overall win-win. Less returns=less environmental waste and polution.
I'm open to any and all questions you might have.
Thanks in advance for your time.
Sincerely,
Viktor
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Comments
If a customer places an order for 10 bgn, with cash on delivery, they will pay upon receipt:
10 bgn + 6-8 bgn shipping + 0.15-0.25 bgn (1.5-2.5% of 10 bgn)
Whoever is paying the delivery fees also pays the cash on delivery fees.
Therefore, the customer pays nothing (you can see my store orders from Bulgaria) until they receive the package and inspect it.
I have not even bothered to add the courier shipping fees, as sometimes the CoD fees are higher than the delivery. I do note this when they select the shipping and payment method, but a lot of people don't read. People are also used to having this calculator on local websites.
For example, you can have a look at order 4923021 for 545 euro (just a single example of a higher value, as its most illustrative). Shipping was ~5 euro, but the the CoD fees were 13.62 euro, as the buyer chose to pay by card and delivery to an address (and not to a courier office).
I have started calling buyers to confirm their their total shipping fees prior to shipping, as i've had a lot of returns.
I cannot pay the delivery fees or the cash on delivery payment fees in advance, as this is done at the moment of payment - which is when the buyer accepts the delivery.
I also cannot calculate how much the cash on delivery fees will be prior to someone placing an order, as there is no automatic % based calculator or a flat fee so i can average it out (unless i accept 'manual invoice' and have to do them by hand, only for the customers to cancel).
The other solution is to integrate the Speedy shipping API (Bulgarian Branch of Adpd), but i think that's a big ask, as i think im the only BG store on BO, and the COD calculator would be needed for that anyways 😅
In case you want to have a look at their API:
https://api.speedy.bg/web-api.html
I'd understand if this is not a good idea to implement for every payment/shipping option, but i' be grateful if it can be added to CashOnDelivery at least