Payment-on-delivery gives customers who may be wary of paying for goods online an alternative payment option that they may deem to be safer. It’s a business practice that’s common in Japan, apparently reducing return rates, and a move that Play.com’s Japanese owner, Rakuten, is keen to implement.
“Shipping issues are the most common reason for cart abandonment in Europe. We only offer a few shipping models. That’s alien to Rakuten. We’ve got to be more flexible to grow,” marketing director Adam Stewart told Retail Week.
The new plan is part of Play.com’s strategy in 2012 to increase its customer service offerings, starting with the introduction of new categories on its website and better optimisation for customers browsing with their smartphones.
“The original strategy was to increase the categories Play sells in at a phenomenal pace but the Rakuten model is focused on the market place. We will increase categories through what our merchants choose to sell through us rather than creating our own categories,” said Stewart.
Source: Retail Week