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Brendan Considine

By Brendan Considine

04 Nov 2016

Is Payment After Delivery Now Something Your Customers Expect?

Is Payment After Delivery Now Something Your Customers Expect?

Are today’s retailers brave enough to follow the next trend we are seeing in the marketplace, to go one step further to gain market share and to offer a service whereby they only take payment after delivery, often some days after the goods have arrived.

PayPal Setting the Standard

PayPal were one of the front-runners to offer the Pay After Delivery service. This is available to those retailers with a confirmed bank account and offers your customers the luxury of ordering goods, receiving said goods and then only paying for them 14 days later. This is a fantastic service for the consumer as it makes shopping completely risk-free, you get the goods in a day or two and if it doesn’t meet with your expectations it can be returned to the retailer before payment is taken thereby eradicating any need to request a refund.

This service has proved to be particularly popular with clothing retailers as this now makes it even easier for their customers to shop. They can order the size above and the size below their normal size ‘just in case’…this is particularly useful if you’ve just came off a strict detox and are unsure the effect this has had and even better if you’ve not been particularly good over a weekend and may have gone up a size or two!

Some of the larger retailers have adopted this service (Zara, Monsoon. Collectif, Superdrug, Fat Face) and this has seen them grow from strength to strength, once again increasing the gap between the smaller and larger retailers due to what can only be described as ultimate flexibility in their processes and systems to be able to react to the continuing demands of their customers. These retailers are clearly using the PayPal After Delivery service but other retailers such as Chain Reaction Cycles are advertising this through their Facebook channel and are using other means, it is not unique to PayPal.

Offering Payment After Delivery Without PayPal

Retailers who sell on eBay or Amazon normally have the backing of PayPal but those who are trading online only or via bricks-and-mortar often don’t have the luxury. Having the backing of PayPal is one thing but deciding to do this off your own bat and taking the risk yourself is another thing and some retailers (such as Chain Reaction Cycles) are doing just this. This is truly putting the customer at the forefront of their business and they are doing their level best to take away as much risk as possible from the shopping experience thereby increasing their exposure and sales volumes. Bearing in mind that they have seen a compound annual growth rate of 69% over 12 years and are set to exceed £170m turnover in 2016, a service such as taking payment after the goods arrive even in tough trading is what sets businesses like these apart.



Looking at the growth of a retailers such as Chain Reaction Cycles, the question arises –  why isn’t everyone doing this?

Firstly, not every retailer is able to take such a risk but, equally many retailers do not possess back-office systems or processes that would allow such a switch. For many this would entail a great deal of manpower and for others their systems may only offer the ability to take payments up-front.

How Khaos Control can help with Payment After Delivery

Fortunately solutions like Khaos Control had the foresight to realise a while back that the market would move in such a direction and that it would be imperative to allow retailers the ability to take payments at a variety of points in their customers’ journey:

  • up-front,
  • after picking,
  • after packing,
  • after shipping
  • and even taking payment a number of days after delivery.

Khaos Control was designed with this kind of flexibility up front. Allowing retailers to adopt change quickly, and to adapt their business processes at a rapid rate with minimal upheaval.

This is why the Authorise Payment feature can be dragged and dropped before or after other processes easily within Khaos Control. Those retailers who have a flexible ERP system in place that allows the taking of payments many days after the goods arrive will see a significant increase in sales volume in the coming months particularly in the lead up to Black Friday, Cyber Monday and especially over the holiday season.

Contact one of our solutions specialists and we will happily introduce you to the concept of ‘payment after the goods arrive’ and discuss the flexibility your business needs in order to cater for anticipated growth in sales and order volumes.  My colleague Andy Richley has also written a follow-up blog post on one way of implementing this offering in Khaos Control.



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