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Lazada is removing Cash on Delivery as a payment option

Lazada is always known for offering an array of payment methods for greater shopping convenience. For those who don’t have access to online banking, credit cards or debit cards, the e-commerce platform has been offering the Cash on Delivery option for years. If you’ve been shopping on Lazada using this method, it’s time for you to go cashless as the platform is gradually phasing out this cash option.

In an email sent to sellers, Lazada has announced that they have started to remove the Cash on Delivery option in phases across these few months. They added that this move will help to reduce cancellation of orders as well as failed deliveries which is said to be more common for COD transactions.

As an alternative, Lazada is encouraging buyers to use their Lazada Wallet which can be topped up via online banking or at 7-Eleven outlets. At the moment, only selected items allow Cash on Delivery and it will be stated clearly in the product listing. Below is a copy of the email announcement:

The COD option offers greater convenience for buyers and it certainly helped sellers to reach out to a wider consumer base. It provides consumers with greater confidence to shop especially for those who don’t trust online banking.

Unfortunately, COD has its own set of problems as well. Since consumers are free to place an order with zero payment upfront, they have the right to reject the item upon delivery or when they changed their mind. Buyers could potentially abuse the system by placing multiple orders from various stores and only pay for the item that arrives first or has the lowest price. Rejected orders are not just a waste of time but it also costs money for delivery.

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What do you think of COD? If you prefer COD over online banking, do let us why in the comments below.

Alexander Wong