COD (cash on delivery) can be expensive for businesses due to high fees and potential fraud. Converting COD orders to prepaid orders can reduce costs and streamline the process. Businesses can incentivize customers to pre-pay by offering a discount. This benefits both the customer and the business by improving cash flow, reducing fraud, and providing a smoother process. In this article, we cover the four parts of the COD orders to prepaid flow that will help you better understand:
WHY SHOULD YOU USE THIS FLOW?

BENEFITS OF THIS FLOW

HOW DOES THIS FLOW WORK

HOW TO ENABLE THE FLOW

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WHY SHOULD YOU USE THIS FLOW?

As a merchant, push for prepaid order whenever you can. 

→ It can reduce the risk of fraud: Prepayments can help to reduce the risk of fraud, as the merchant can verify the customer's payment information and ensure that the order is legitimate.

→ It can improve cash flow: Receiving payment in advance can help merchants improve their cash flow, as they will have the funds available to cover the cost of fulfilling the order.

→ It can reduce the risk of non-payment: Customers who prepay for COD orders are more likely to follow through with their purchase, which can help to reduce the risk of non-payment. Did you know that the return rates of COD orders are 300% to 500% higher than prepaid orders?

→ It can improve the customer experience: Incentivizing customers to prepay for COD orders can make the purchasing process more convenient for customers, as they will not need to pay for the order when it is delivered.

Every avoided return has a positive ripple effect of saving cost by

→ Avoiding unnecessary Forward & reverse logistics.

→ Avoiding unnecessary Blocked Inventory (Items stuck in transit).

→ Avoiding unnecessary Physical quality check and re-packaging of returned items.

→ Avoiding unnecessary damage to fragile items.

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BENEFITS OF THIS FLOW

The convert COD orders to prepaid flow has several benefits:

• Cost savings: COD orders can be costly due to additional delivery and handling fees. By incentivizing customers to pre-pay for their orders, businesses can save money and allocate those resources to other areas of the business.
• Improved cash flow: Prepaid orders ensure that the business receives payment upfront, reducing the risk of unpaid orders and improving cash flow.
• Reduced fraud and returns: Prepaid orders reduce the risk of fraudulent orders and returns as customers have already committed to the purchase.
• Streamlined process: Converting COD orders to prepaid orders streamlines the order fulfillment process, making it easier for businesses to manage their orders.

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HOW DOES THIS FLOW WORK

• When a customer places a confirmed COD order on your store, an automated WhatsApp message will be sent to them offering a discount of 5% to 10% if they pre-pay for their order.
• By offering a discount, businesses can incentivize customers to pre-pay for their orders, reducing the cost of handling COD orders.
• Depending on the discount offered, businesses can expect to convert 5% to 10% of COD orders to prepaid orders.
• If the customer agrees to pre-pay, they will be taken to a payment page on your store where they can choose from different payment options.
• Once the payment is received, the order status will be updated to "prepaid" and the appropriate tags will be added to the order so the fulfillment team will know the status of the order at your store backend.
  

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HOW TO ENABLE THE FLOW

To enable the COD orders to prepaid, you need to follow these steps:

1. Log in to your FlowHippo Account.

2. Go to Playbooks, search for "Prepaid" and click on “Convert COD Orders to Prepaid”.

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3. Click "Use this Playbook".

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4. Click "Publish" to make the flow live.

Note: If you wish to customize the flow, click "Edit Flow" to modify it to your needs.

That's it! You've successfully enabled the convert COD to prepaid flow.

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Keywords: COD orders, Prepaid orders, Discounts, Tags, Cost saving, Send notifications, Payment options, FlowHippo.

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