QIWI payment service has conducted a research into the impact of Pay on Delivery on online store’s operating indicators, using izobility.com as a case study. The findings obtained over six months point to a twofold increase in turnover and conversion rate at the time of the first order.
QIWI offered izobility.com customers an option to pay on delivery in June 2017. Early results indicate that it has had a significant impact on the growth of online stores’ operating indicators and the development of the cross-border e-commerce segment as a whole.
Adding Pay on Delivery as a payment service on izobility.com has helped double the conversion rate at the time of the first order as well as the platform’s turnover. The average order size, in its turn, has grown by 15% and reached RUB 4,000 whereas the percentage of orders that remained unpaid has not gone above 5%.
Leonid Bessonov, a Managing Partner at izobility.com, thinks that, above all, the additional payment option helps engage buyers from places where a great many people still do not believe in online payments by cards.
In an earlier customer survey QIWI found out how the size of the order determined the choice of Pay on Delivery: 80% of the respondents said they would use it if their order was above RUB 3,000; and 69% if it was above RUB 1,000.
‘The QIWI – izobility case in cross-border e-commerce has demonstrated yet again the efficiency of having in place payment and logistic capabilities required for Pay on Delivery. We can see that this option has a significant impact on practically every operating indicator of an online store, whether it is conversion rate, average check or platform’s turnover. It has to be stressed that it puts no pressure on other payment options available from an online store. When rolled out by online stores that are offering products from abroad, it may help grow the market share of cross-border e-commerce because it fully meets payment preferences of the majority of Russians and helps reach an audience who has no experience in buying from foreign stores,’ said Stanislav Saveliev, Head of Payment on Delivery, QIWI.
As a reminder, QIWI’s unique Pay on Delivery for cross-border e-commerce went live on the World Shopping Festival (Singles’ Day) in 2016. It can be used to pay on delivery direct to the courier in cash or by card.
Pay on Delivery
– For orders above RUB 3,000
– For orders above RUB 1,000
– Unpaid orders
– Doubles online store’s conversion rate
– Average order size