Why Kenyan E-Commerce Stores Should Offer "Pay on Delivery" (Even Though It's Risky)

The Fear That Blocks Sales

Many Kenyan online shoppers are hesitant to pay upfront for a product they haven't seen, from a seller they don't know. They've heard too many stories of scams. So they abandon their carts. Offering Pay on Delivery (POD) —also known as Cash on Delivery—can unlock this trust-deficient market segment. Yes, it's risky: you might deliver and the customer refuses to pay, or they might return the item. But the upside can be significant.

When POD Makes Sense

• First-time customers: POD gives them a risk-free way to try your business.
• High-ticket items: Paying KSh 50,000 upfront is a hard ask; paying upon inspection is easier.
• Customers outside major cities: Trust is even lower in areas with less e-commerce penetration.

How to Offer POD Safely

1. Set a "POD Fee" (Optional)

To offset the risk, you can charge a small premium for POD: "Pay on Delivery: KSh 200 extra (to cover the risk of returns)." Many customers are willing to pay this for the peace of mind.

2. Require a Partial Deposit for High-Value Items

For items over KSh 10,000, require a 20-30% deposit via STK Push to cover your dispatch cost. This ensures the customer is serious and reduces your loss if they refuse delivery.

3. Use a "Digital Confirmation" Before Dispatch

Before dispatching a POD order, send an SMS/WhatsApp: "Confirm your order and agree to pay KSh X on delivery. Reply YES to confirm." This creates a record of consent and reduces frivolous orders.

4. Enforce a Clear Return Policy

Clearly state: "If you refuse delivery without a valid reason, you will be charged a restocking fee of KSh 300." This deters serial returners.

The Trust Dividend

Offering POD builds trust with a segment of the market that would otherwise never buy from you. Once they experience your quality and reliability, many will switch to prepaid for future orders, especially if you incentivise it: "Prepay and get 5% off."

Don't let fear of risk block you from a whole market segment. Offer POD with the right controls, and expand your customer base.

Set Up Pay on Delivery →