CASH ON DELIVERY RISK MITIGATION CMRR MODEL

Abstract

This research paper is an explorative investigation of cash payment on the delivery of electronic commerce transaction to identify the risks and losses incurred by merchants in an unsuccessful transaction using questionnaire instrument on major e-commerce shops in Nigeria (Jumia, Konga, PayPorte, Slot.ng, Jiji Nigeria etc. The study suggested that the risk incurred are associated from return shipment of items, packaging and unpacking of products from unfulfilled transactions, logistics, theft in carrying huge amount of money on transit, fraudulent orders and chargeback in an unsuccessful cash on delivery of electronic commerce transaction. Hence the development of a centralized merchant registration retrieval (CMRR) model to mitigating the identified risk and allied loses, through a post billing mechanism that post-debit a customer, to ensure that a nominal fee for covering the cost associated with unsuccessful transactions are covered. The model was further evaluated from the major electronic commerce shops in Nigeria and their customers for acceptability. The result indicated 70% acceptability by merchants, as a solution that guarantees the effectiveness of cash on delivery electronic commerce transaction, while 30% of customers accepted the model, citing the need for further trust that post-debit bills for cash on delivery transaction will not be affected on successful transactions.