Parcel carrier DPD Romania has launched a new charge on delivery (COD) service for Romanian ecommerce companies selling products to Hungary and Bulgaria.
The company, part of La Poste’s DPD network, said its new COD International service was the only one of its kind available.
It has invested EUR 50,000 in setting up the venture, where online purchases can be delivered within two days, and payment for the goods taken when items are delivered.
The COD International service can transfer payments directly into a customer’s online shopping account, and also offers financial reports and customised shipping status reports, as well as automatic insurance for up to 10 times the item value.
Tracking and proof of delivery is also available with the service.
Charge on delivery systems are a key way to expand ecommerce business where consumers do not have access to credit cards for payment online, or do not trust online payment systems.
DPD Romania marketing manager Alin Gherman said there had been a real boom in online shopping in recent years in Bulgaria and Hungary, making the new service a “natural choice” for DPD to grow its business in the region.
“The service is initially being offered for shipments to Hungary and Bulgaria, countries with a pronounced interest for Romanian online shopping offers,” said Gherman.
“In future, when the Romanian online shopping offer starts to attract other countries, we will extend this service to other emerging markets such as Poland, the Czech Republic or Slovakia.”
DPD said the new service is now being used by around 5% of DPD Romania’s online shopping customers, and expectations are that this will grow to 15% by the end of the year.
DPD Romania had a turnover of RON 36m (EUR 7.9m) last year – up 20% on the previous year – and currently has a market share of about 7% in Romania.