In Central and Southeastern Europe, where tradition and modern technology coexist, cash-on-delivery remains one of the most preferred payment methods for online shoppers. Despite the rapid rise of digital payments, many consumers continue to choose this method, whether due to distrust of online transactions or the desire to inspect products before paying for them.

In this article, we explore the impact of cash-on-delivery on online businesses and analyze regional trends surrounding this payment method.

What is Cash-on-Delivery?

Cash-on-delivery is a payment option where customers pay for their products directly to the courier upon delivery. This system provides a sense of security, particularly for customers who are skeptical of online transactions, lack access to digital payment methods, or prefer to verify the product before completing the payment.

Benefits and Impact of Cash-on-Delivery

Despite the growing popularity of digital payments, cash-on-delivery offers significant advantages for both customers and online retailers.

Increased Conversion Rates

For skeptical consumers, cash-on-delivery removes barriers related to trust. Retailers offering this option often observe a significant increase in conversion rates, especially in emerging markets. A Statista study shows that over 40% of consumers in Eastern Europe prefer traditional payment methods.

Reduced Cart Abandonment

Many customers abandon their carts at the payment stage. By offering cash-on-delivery, online stores can significantly reduce this issue and attract customers who don’t have a bank card.

Accessibility in Rural Areas

In regions where access to Internet banking or credit cards is limited, cash-on-delivery becomes the only viable option. This expands the customer base for retailers seeking to reach rural areas.

Impact on Returns

Returns are more frequent with cash-on-delivery, as customers are more likely to refuse a package upon delivery. However, this flexibility is appreciated by customers and can lead to increased long-term loyalty.

Regional Trends Analysis

Cash-on-Delivery in Romania

In Romania, cash-on-delivery is still one of the primary payment methods, accounting for 49% of online orders. Consumers in rural areas and first-time online shoppers particularly favor this option.

Cash-on-Delivery in Hungary

In Hungary, cash-on-delivery accounts for approximately 30% of online transactions, particularly popular among individuals over 40.

Cash-on-Delivery in Bulgaria

Bulgarians continue to opt for cash-on-delivery in nearly 60% of cases. Statistics show that retailers offering this method enjoy 25% higher conversion rates than those who do not.

Cash-on-Delivery in Croatia

Although Croatia boasts a well-developed digital infrastructure, cash-on-delivery remains the choice for 38% of customers, especially for high-value purchases.

Cash-on-Delivery in Slovenia

In Slovenia, 40% of shoppers prefer cash-on-delivery, particularly in rural areas or for orders from international merchants.

Cash-on-Delivery in Slovakia and Czechia

In Slovakia and Czechia, cash-on-delivery is used for around 50% of transactions and is considered a safe and convenient method.

Altexpress: The Ideal Solution for Cash-on-Delivery

Altexpress offers scalable and flexible logistics solutions for retailers looking to implement or optimize cash-on-delivery in international markets.

With strategically located warehouses in Romania and Southeastern Europe, Altexpress ensures fast deliveries, even during peak seasons. Advanced Warehouse Management Systems (WMS) provide real-time order tracking and process adjustments to meet demand.

Altexpress integrates seamlessly with marketplaces and eCommerce platforms, offering automated reporting and dedicated support for returns processes. This allows retailers to reduce costs while improving customer experience.

Conclusion

Although digital payment methods are on the rise, cash-on-delivery remains a cornerstone of eCommerce in Central and Southeastern Europe. Retailers incorporating this option enjoy a broader customer base and higher conversion rates. With a reliable logistics partner like Altexpress, implementing and managing cash-on-delivery becomes simple and efficient, providing a competitive edge in international markets.