A New Approach to COD
As we illustrated in Part 1 of this blog series, ‘What’s Wrong with Cash on Delivery’, facilitating transactions through traditional Cash-on-Delivery (COD) remains a popular collections method for suppliers, but it’s not without its downsides. But what other option is there for suppliers who wish to maximize the benefits of traditional COD, without sacrificing anything from their current collections process? Enter ‘Electronic Cash on Delivery’, or eCOD.
eCOD is a fundamentally new approach to cash-on-delivery which, among other advantages, enables suppliers to move their COD customers online. Electronic COD customers are presented with a self-service portal where they can access all of their account and billing information, and invoices and statements, in one centralized, configurable, and secure location.
At the heart of eCOD is ‘AutoPay’, which can be synced with a supplier’s order fulfilment process, regardless of whether they operate according to a just-in-time inventory model, or if they receive payments after delivery. Payments can be processed on receipt (when invoices are published or delivered), on a due date, or at a specific time. eCOD, with its AutoPay functionality, delivers a streamlined order intake process for suppliers and facilitates faster payment processing with reduced cash application errors.
With eCOD, suppliers eliminate the need for cash and checks while gaining greater visibility into their customers’ accounts. Customers using eCOD benefit by gaining access to a portal that puts them in control. The portal enables these customers to add or update their preferred payment method, view past invoices and payment activity, apply existing credits to new invoices, and collaborate with their suppliers in real time.
Why Suppliers Should Adopt eCOD Today
Here are 6 of the primary reasons why suppliers currently offering traditional COD should explore eCOD options today:
- Greater Visibility Into Customer Accounts
- Faster Payment Processing
- Reduced Safety Risk & Better Dispute Management
- Real-Time Collaboration with Suppliers
- Payment Experience that Suits Your Preferences
- Improved Path to Becoming Credit Customers
More than ever, being able to offer your customers a customized user experience that meets their needs is critical to maintaining business continuity and enabling business growth. At Versapay, we’ve designed our platform around the principles of customer-centric AR. We’ll help you empower your customers with an intuitive self-service, online payment experience, for credit and COD customers alike.