Konga ends Pay on Delivery, Transitioning to Prepay only Model

Konga ends Pay on Delivery, Transitioning to Prepay only Model

In mid-November, Konga.com made a bold step and became a prepay only platform. In recent years, we have explored several solutions for payment and e-commerce in Nigeria and concluded that prepay is a necessary approach for our business and the market.

Given the cost of inflation and increasing challenges of managing payment-on-delivery, as well as the resulting level of order cancellations on the platform, we had to take this decision. We will continue to review other ways to provide payment-on-delivery to customers, but for the time being, we are prepay only. We have enabled a contact seller button that allows open communication between and seller and buyer in cases where pay on delivery transactions still need to be carried out directly between the seller and the buyer.

This decision means that we can run a more efficient business and focus our energies on orders that we are sure customers want. It also means that our operating costs will be lower, putting us on a better track where we can solve deeper issues that paying customers face on the platform.

In line with this new approach, today we announced an internal restructuring to align our operations with a prepay only model and our intention to stop warehousing activities. Unfortunately, this resulted in a headcount reduction. Letting go of colleagues and friends is not an easy decision, but one that naturally stems from these changes. With the support of our investors, those impacted will be duly compensated.

Our Customers, Merchants and Franchisees should expect to see an improvement in service quality, which continues to be the core of our business approach and we are now better shaped to look into other issues other than cash handling.

A big thank you to all our customers who have trusted us enough to begin paying online for their orders. Since we switched over, we have seen a strong shift toward online payment which is a much more seamless experience (insights to be shared later as it will benefit the industry).

We also hope that the financial industry, which has made significant improvements since when we started in 2012, will work with us to find simpler solutions for customers to make payments online and also enable quicker refunds.

This is no way an easy decision but it leads us to a path that we feel is best for us.

This article first appeared on Shola Adekoya’s Medium Page

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