While running an online eCommerce store in Pakistan, Pre and Post Payment Scenario plays a vital role. More than 80% of sales are settle through COD ie Cash on Delivery which has many adverse effects such as chances of return delivery, double confirmation process to ensure the order was booked, documenting for order made and order delivered to records, etc. This is called Post Payment method. This is costly too as the payment is collected by courier company who charges 2% or so as their services charges and make payment after 15 days to 30 days which blocks the payment cycle for quite a long time which is not feasible for small retailers.

On other hand Pre payment method is a better option which could be made through credit card, bank transfer and mobile payment (easy paisa, mobicasy and so on). This could boost retailer’s confidence to sale at mark down prices as there are low chances of returns, can document each sales with payment sources and so on.

Perhaps, it will take some time to change the sentiments of buyers to switch from Post payment to Prepayment.  And, for this retailer has to try out various options which would encourage to buy products with prepayments.

Apparently if we study early days ecommerce they were mostly through Prepayment. Post payment option came into existence when brands like Daraz and Homeshopping aggressively offered various flexibility to promote online buying. There could be also some third payment options which could be next model in Pakistan such as Escrow Payment which could increase the trust level on both the end.

Retailers have to consider various possibilities inorder to jump into Post Payment Method option and promote customers to pay in advance and get the product without any risk.



Amin Lalani is a subject matter specialist in Internet Retailer with several articles and research paper published so far. He has done M.Phil from IoBM in Marketing with emphasis on Internet Retailing. Besides academia he has various other certification like SAP, Google Analytic, Microsoft Small Business Solution Provider and more.

Write A Comment