GudangAda's E-Commerce Company Calls The COD System Doubled Buyer Transactions

Photo: Doc. WarehouseAda

JAKARTA - The cash on delivery (COD) payment system is increasingly in demand by e-commerce-based companies. One of them, GudangAda.

GudangAda Chief Commercial Officer Budianto Hariadi said the pay-in-place feature was here to accommodate the requests of traders, most of whom still use cash when making transactions even though the order has been made online. This is based on GudangAda data which shows that the use of the COD system is very high in the Jabodetabek area, around 50 percent-70 percent of orders.

"The launch of the COD payment system answers the needs of traders who prefer offline payment transactions," Budianto said in his statement, Friday, June 24.

Not only that, GudangAda Logistik also provides a free shipping promo package with a minimum transaction of Rp. 200,000 and same-day delivery for orders up to 11.00, as well as delivery guarantees and product protection that make transactions even more convenient for traders.

Delivery of goods will be delivered by drivers from partner vendors of GudangAda Logistics who are trusted and verified when registering as a partner. GudangAda Logistik provides a 100 percent replacement guarantee if there is a shortage or damage to goods caused by driver negligence which is reported within 1 x 24 hours.

The COD feature has been proven to encourage merchants to be more confident in placing orders into the cart, reducing the number of orders left in the cart, increasing purchase confirmations, and completing COD payments. This COD payment system boosts demand because merchants and sellers both benefit from the flexibility of this transaction.

From the purchasing side, the COD feature doubles new buyer transactions. The number of purchase transactions also increased by 105 percent. Likewise, transactions with old buyers also increased by 26.65 percent. Repeat orders increased 38.73 percent due to the COD feature.

This COD feature produces a multiplier effect, namely increasing customer reach because it offers buyers a safe and easy payment method, increasing the trust and convenience of traders, encouraging buyers to make repeat orders.

"This feature can show positive results due to the increasing support for complete product assortment and delivery services on the GudangAda platform," Budianto added.

Budianto explained, GudangAda wants to pamper merchants by providing the convenience of conventional cash payment systems. It is hoped that the COD feature will become a mainstay for traders to transact using the GudangAda platform which connects producers, wholesalers, and retail traders.

“This COD payment system is a feature of integrating multimodal payment systems, both with digital payment services and conventional cash payments in the shopping ecosystem. This is an innovation that we present in order to meet the needs of merchants to shop online with cash payments," he said.

Going forward, GudangAda will continue to listen to and pay attention to the direct needs of traders for product development and implementation of the go to market strategy on the GudangAda platform.

Budianto added that the COD payment option is part of GudangAda's strategy to score consistent growth. In addition to adding payment features, GudangAda will continue to expand to build a digital ecosystem that includes transaction services (procurement, search and purchase), logistics (shipping and warehousing), store management systems (transaction/POS systems, inventory, and accounting), financial services ( payment and credit systems), and marketing services.

Currently, the GudangAda application is recorded to have experienced more than 1 million downloads (downloads) on the Google Store as of the end of April 2022, growing 33.33 percent from the previous 750,000 at the end of 2021.