Hi everyone, recently some buyers ask me whether I can reduce my price if COD at his/her convenience? and then ask me for discount coz minus shipping cost. (But obviously I can't COD for nuts as I m not in boleh-land). It seems like it is a common practice that people reduce price when COD?

Now the question is: What is the cost of COD of buyer and seller?

(in my humble opinion)

Seller point of view:

1. Need to arrange time to meet up (must be convenient to both, but mostly cater to buyer), and this is opportunity cost.
2. Travel cost, whether by driving or public transport to certain location (even if it is on the way), it is still cost.
3. Time cost, now you have to add in all the arranging time, travel time, and time to wait if the buyer is late.
4. Potential loss, what if your buyer take a look then say, "sorry, i don't think it is good for me!", then just walk away, and seller just lost all the effort and time.
5. Some buyers know that the seller incur cost to meet him/her to somewhere, so he/she will purposely get the seller out to meet, and then bargain for lower price on the spot, else threaten not to buy (it happens in kiasu land).

Buyer point of view:

1. Need to arrange time to meet up (must be convenient to both, but mostly at buyers' convenient), and this is opportunity cost because a buyer has limited time to meet all the other sellers, so he/she has to be selective.
2. Travel cost, whether by driving or public transport to certain location (even if it is on the way), it is still cost.
3. Time cost, now you have to add in all the arranging time, travel time, and time to wait if the buyer is late.
4. Buyers' potential gain as (4) above, if he/she didn't like it then don't have to buy.
5. Buyers' optional gain as (5) above, the buyer's choice to bargain.
6. Afraid the post will lost if by postage.
7. Can get the thing instantly.

Analysis:

1. I assume that most of the sellers' and buyers' time worth is higher than the postage on hourly basis. Example, if one person hourly pay is actually RM15, together with travelling cost RM5 plus opportunity cost at RMx, then to COD is good if only postage cost higher than 2 times (RM15+RM5+RMx) minus (potential loss of item + satisfaction of getting the item instantly).
2. However, there could be some moral hazard problem that people choose to cheat, or not selling the same thing as posted.
3. Because of problem (2), the seller and buyer actually prefer to incur higher cost to COD rather than post.

Solution suggested:
1. Better post service, reduce the probability of loss.
2. Seller accept return of good, if it is not suitable for the buyer, but of course, the good must be in good condition for sale, and buyer has to bear the cost of shipping both way.

Conclusion:
I think COD is very costly and inefficient

This post has been edited by huangyong: Nov 30 2010, 07:29 PM

aduh!!!

COD doesn't not meant you have to lower your price!!!
COD actually more efficient for both party...seller and buyer!!!
and you forget one thing from point of buyer views in this you called "kiasu land"

I've been buying stuff on the Internet and so far, have never performed COD. IMO, postage is more convenient for me... so long as I verify the seller has good feedback, etc.

Want COD then direct go shop buy better. COD is for 2nd hand stuffs or the price cheaper than shop alot.
Other than this, i don't understand what is the reason of COD.
Some is even worst, RM5 value of thing also want to COD.
We can't deny that online shopping is just a very early stage in malaysia. So most of the buyer doesn't really know how to buy online.

For me, COD is totally waste of time and money if you are full-time seller.
U have to travel all the way in the bad traffic condition. u have to know how bad the traffic is in KL, (U have to wait alot traffic light, u have to pay alot toll and get jam also, u have to find parking)

And sometime u have to wait half an hour to few hours just because ur buyer is late.

This post has been edited by Renee: Dec 2 2010, 01:44 PM

totally agree!!!
but of coz there must be some way to verify seller la...
what do you suggest?

that happened becoz a lot of scammer out there, and people don't know know how to differentiate who is seller who is cheater....

normally i will less rm5 if COD
if seller don`t say any word just sell at actual price

p/s:COD also must use money like sms/call buyer

Justifying your points for COD is a waste of time is fine.

What if ?

i) Your RM5 or even RM5K item does not arrive at the right time ?
ii) Or the seller is not able to be contacted?
iii) Will the seller ensure the item comes into 1 piece while sending through post?
iv) Possibilities of item lost during transition?
v) Willing to take the risk of returning items using your own cash if the item arrive damaged / dented / broken etc..??

COD is always the best practice of dealing although taking into consideration the fact of traffic, toll conditions here in KL (these are excuses).
Why do you need to COD during work hours or during peak traffic hours? You always have the weekends or after peak hours to choose.

I believe after 9pm onwards, its less trafffic and (of course depending on the location). Must be wise in choosing the right location for COD and its effective.



1. If your price is reasonable, why there's a question of need to reduce during COD? There's no reason why you need to reduce your price if you COD (depending on type of item you sell)
2. Better post service, reduce the probability of loss? Mate, this is the most dangerous risk you ever taking. Haven't you read the news and topics in LYN? There are many lost parcels and items during postage.
3. Incur higher cost to COD? Like wat cost , petrol ? toll? traffic? For goodness sake these are lame excuses!
4. Do you know if the items do not arrive in 1 piece to buyer, they gonna spend cash again to send back the item and you gonna do in return as well sending proper goods. Cost effective? NO...
5. Its not always the case of postage is bad, its buyers choice but COD better. Talking bout buyers from other states and locations only. If you are a seller within KL, why not COD..you tend get to know the seller better and you could have better relationship.
6. I personally think postage is a high risk deal. As there's a high risk at my sellers end if there's a loss of items. Its a loss in fact.


This post has been edited by sKyWiR3pT3lTd: Dec 3 2010, 02:19 AM

Thanks for sKyWiR3pT3lTd feedback, really appreciate it.

One thing I neeed to clarify is, the reduction of price is requested by the buyer, their reason being postage fees is free.

In my opinion, after looking those considerations from different parties, it is either the online prices become uncompetitive (taking account for COD), or those cost should be incur on buyer when they request for COD? since the benefit is very high to the buyer.

Once your thread is up and item is for sale, 2 fact here.

1. Price set as negotiable
2. Price set as firm

If your price is negotiable it should be done privately. This should not affect the price while you COD.
If your price is not negotiable , while you COD , its ok to accept or to reject the price reduction during delivery. Its a mutual understanding between buyer and seller. Its not a rules or procedure to follow strictly.

Its your decision and buyers choice purely

Like what i said, if new seller, is ok to start practice COD first in order to build up the reputation.
Maybe after half years when all the positive feedback u get, u can start with postage method.

I'm a handphone seller before, imagine u have to COD 10 buyers on 5 different places everyday, it is not a easy job.
And don't forget, ur buyer come from online since u are online seller, and by the time u wasted for the COD, u able to get another 1-2 potential buyer just because u are not sitting in front computer.

Postage is fine if you wrap properly, write the consignment slip properly and professionally.
Insert some of the waste paper into the handphone boxes and absorb the impact, wrap the box with bubble wrap and before that, wrap it with 1 layer plastic first in case there are rainning day so the chances of the box and HP get wet , buy the high quality brown paper which is very thick, and lastly get the fragile sticker.

Don't forget, Dell also using postage
Nowadays, Digi alo start using postage by sending iphone 4.

I do ship quite large of value of handphone before, some even reach 20K - 30K of parcel shipped by Poslaju.
4 years sending more than 1 million worth of handphone by Poslaju, glad to say nothing happened. 0% error or lost.

Like what i said, Malaysia is still early stage in online shopping, that's y most people want COD. In Taiwan, yes 20 years back still same like us, most people prefer COD. So maybe 5-10 years ahead, most people will choose postage.

This post has been edited by Renee: Dec 3 2010, 09:08 AM

I disagree.
For buyers, yes, but not always.
What if you only have to pay RM6 for Poslaju but instead, you drove all the way from KL to Shah Alam. Is that efficient? No it's not.
Most of my KL buyers just asked me to do postage instead of asking for COD.

It's also not efficient for me. Because I have to think about car fuel, tolls, parking spot & so on.

Make it as simple as this.
View the sales thread, check the seller's credibility, check the item pictures and if possible, ask for a clearer pictures.
Then if you're satisfied, deal with him through courier.
If not, then don't buy.

Courier is there for a reason. Though it has it's own risk, it's much easier for everyone.
Life is full of risk. If you're afraid of risks, then don't live your life.

I wish i can ask Dell to COD in mid valley after 9PM. kekeke

I prefer postage because it is more convenient .. as I'm a busy person..

but if customer insist to COD.. I'll have to charge some service fee.. this depend on them if they agrees.

Good to hear pros and cons of COD against Postage.

In fact i would say i prefer both. Like some of you commented it saves time, fuel, toll , parking , jam..

I have deal via COD with local buyers, and I could say most of them didn't meet up in time. I have to sit there more than 2 hours waiting for them.

To buy stuffs, I prefer postage since computer items here (sarawak) are quite expensive. But of course, I have to search for reputable seller that can offer good price

I think most buyer didn't care much about postage charges...

according to my customer, most of them prefer to COD because they don't have time to wait for the parcel at home or no ppl at home to wait and they lazy to go to post office take the parcel...

So for them COD is easier if the seller stay in near place..

if far then ofcourse postage is more prefarable

I dun tink it should be free for COD, + nowdays even RON95 oledi 1.8

If they prefer to COD near ur working place or home then should be ok to do it for free.

I always go for deposit+COD charges, prevent FFK n more understand buyer which make less problem.

For fresh buyer, i recommend to come over store.

if reputable seller, i prefer postage to my office...

good comments... thanks