Should I offer pay on delivery for imported goods in Nigeria?
Updated · By the Import2Sales team
Short answer
Offer pay on delivery (POD) to win trust and more orders, but protect yourself: it carries a real risk of failed deliveries and tied-up cash. Most Nigerian sellers do best with a middle path, taking a small deposit or the delivery fee upfront and confirming every order on WhatsApp before dispatch, rather than full POD with no commitment.
What does pay on delivery mean for a mini importer?
Pay on delivery (POD, also called cash on delivery or COD) means your customer pays only when the goods reach them, usually in cash or a transfer to the dispatch rider. You or your courier front the delivery, and you get your money after the handover.
For imported goods this helps because many Nigerian buyers have been burned by sellers who collected money and vanished. POD removes that fear, so your 'Order on WhatsApp' button converts more first-time buyers. The trade-off is that the risk shifts from the buyer to you.
What are the pros and cons of POD?
The main pro is trust and conversion. Buyers who would never prepay a stranger will happily accept a package and pay the rider, so POD typically lifts orders for new or small WhatsApp sellers who have no track record yet.
The main cons are failed deliveries and cash flow. When a buyer refuses or is unreachable, you pay the return trip and your stock sits in a van instead of earning. You also wait days to be paid even on successful orders, because the courier remits in batches.
- Pro: higher trust and more first-time orders
- Pro: lower barrier for buyers outside Lagos who fear online fraud
- Con: failed deliveries cost you the round-trip fee and tie up stock
- Con: you wait days for the courier to remit your money
- Con: cash exposure if you use an informal rider who disappears with the cash
Why do POD deliveries fail?
POD deliveries fail mostly because the buyer was never fully committed when they placed the order. Failure rates vary widely from seller to seller and city to city, and most of the numbers you see online come from courier or vendor marketing rather than audited studies, so track your own rate instead of trusting a headline figure.
The common reasons are impulse orders the buyer regrets by delivery day, wrong or vague addresses, a phone that is switched off when the rider calls, and 'price shock' when the buyer sees the full amount in cash for the first time. Every one of these is something you can screen for before the item leaves your hands.
How do I cut failed deliveries?
The single biggest lever is a small commitment before dispatch. Sellers who pair a WhatsApp confirmation with an upfront delivery fee or part-deposit usually see most no-shows disappear, because a buyer who has already paid something rarely rejects the package. Treat the exact split as something to test against your own numbers.
- 1Confirm every order on WhatsApp before dispatch. Send a short message restating the item, colour, price and address, and ask the buyer to reply 'confirmed'. A written yes filters out impulse orders.
- 2Make a quick confirmation call or voice note for higher-value items, so you hear a real, committed buyer.
- 3Collect the delivery fee upfront by transfer. A buyer who has paid even ₦2,000-₦3,000 rarely rejects the package.
- 4For expensive items, take a part-deposit (for example 20-30%) and let the balance be paid on delivery. This keeps trust high while giving the buyer skin in the game.
- 5Confirm the exact address and a landmark in chat, and agree a delivery window so the buyer expects the rider's call.
- 6Use a courier that gives you a tracking link and remits reliably, so a failed drop is logged and you are not chasing cash.
POD vs part-deposit vs prepaid: which should I use?
There is no single right answer; it depends on the price of the item and how much you trust the buyer. Cheap, light items can tolerate full POD because a failed drop costs little. Expensive items should carry a deposit or be prepaid, because one failed delivery can wipe out the profit on several good orders.
Use the table below to match the method to the order. Many sellers offer full POD only to repeat buyers and ask new buyers for at least the delivery fee or a part-deposit.
Choosing between full POD, part-deposit and prepaid for imported goods
| Method | Risk to you | Conversion (orders won) | Cash flow | Best for |
|---|---|---|---|---|
| Full pay on delivery | High: you fund delivery and carry return cost on every failed drop | Highest: lowest barrier for nervous buyers | Slow: paid only after courier remits | Cheap, light items; trusted repeat buyers |
| Part-deposit (e.g. 20-30% upfront, balance on delivery) | Medium: deposit covers your delivery/return cost if they bail | High: buyer still feels protected | Mixed: some cash now, rest after delivery | Mid-to-high value items; new buyers |
| Prepaid (full payment before dispatch) | Low: money is in hand before stock leaves | Lower: needs an established, trusted brand | Fast: cash upfront funds restock | Established sellers; pre-orders; very high-value items |
Which couriers handle POD and remit the cash?
Several Nigerian couriers will collect payment on your behalf and remit it, but the timelines and fees differ, so confirm in writing before you ship. GIG Logistics lets merchants create cash-on-delivery and transfer-on-delivery shipments in the GIGGo app, and its FAQ states sellers are paid within 3-4 business days after payment is processed, with zero COD charges on its ₦4,500/month CLASS plan GIG Logistics.
Remittance speed is the thing to check. Sellers using GIG and Sendbox have reported inconsistent COD remittance timelines, a real cash-flow risk for small sellers, so ask any courier for its written remittance cycle and plan your restocking around that delay rather than around the day of delivery Brands.ng.
- Ask each courier for its written remittance cycle (daily, per dispatch or weekly) and any COD fee
- Ask what share of COD orders they actually collect versus returns
- Prefer a courier that logs failed drops and gives you a tracking link
- Where you receive goods and deliver differs by state, so check local options on the /mini-importation hub
How does this fit my pricing and sales page?
Build the delivery and failed-delivery risk into your price before you offer POD. Factor in landed cost (the air-freight default is around ₦13,000/kg as an Import2Sales default assumption; confirm with your agent), the courier's fee, and a small buffer for the orders that fail. You can run the numbers quickly with the free Product Opportunity Checker at /check to see your profit and margin before you commit.
On your sales page, state your terms plainly, for example 'Pay on delivery available, small delivery fee paid upfront'. When you paste a product link into Import2Sales it builds the mobile page and the pre-filled 'Order on WhatsApp' button, and you simply confirm the order and payment terms in that first chat, which is also where you screen out the no-shows.
Frequently asked questions
Is pay on delivery safe for a new seller?
It is safe if you screen orders. Confirm every order on WhatsApp, collect the delivery fee or a small deposit upfront, and use a courier that remits reliably. The danger is full POD with no commitment and an informal rider, where a failed drop or a vanished rider costs you both the goods and the trip.
How much deposit should I ask for on an imported item?
For mid-to-high value items, 20-30% upfront is common. It usually covers your delivery and return cost if the buyer backs out, while still letting them pay the balance on delivery so they feel protected. For cheap items, just collecting the delivery fee upfront is often enough.
How long before a courier pays me for a POD order?
It varies by courier. GIG Logistics states sellers are paid within 3-4 business days after payment is processed, but some sellers report inconsistent timelines across providers. Always ask for the written remittance cycle before you ship, and plan your restocking cash around that delay, not around the day of delivery.
Should I offer POD or ask buyers to prepay?
Offer POD to win trust from new buyers, but protect yourself with a part-deposit or upfront delivery fee. Move trusted repeat buyers toward prepaid for faster cash flow, and prefer prepaid or a larger deposit on high-value items where one failed delivery can wipe out several orders' profit.
What do I do when a buyer refuses the package at the door?
If you took a deposit or the delivery fee upfront, that covers your round-trip cost, so the loss is small. Log the refusal, keep a note of unreliable buyers, and arrange return of the goods with your courier. This is exactly why screening on WhatsApp and a small upfront payment matter before dispatch.
Does offering POD change how I price my goods?
Yes. Build the courier fee and a buffer for failed deliveries into your selling price, on top of your landed cost. Run the figures on the free checker at /check first so you know your margin survives a few failed drops before you promise pay on delivery.
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