Factors Affecting Retailers' Adoption of the Cash on Delivery (COD) Payment Model for e-Commerce Transactions: Case of Vietnam

Abstract

Along with the development of the commercial e-commerce market, Cash on Delivery has been increasingly used by many retailers. According to the International Finance Corporation in 2014, COD is accepted by 24 of the 33 (73%) of the surveyed e-commerce companies in Vietnam. Through the evaluation and analysis of retailers' opinions, the study has learned to clarify the factors that influence a retailers' intention to use the COD payment method and intention to use COD services. Research results show that perceived risks (TPR model) such as Financial risks, Performance risks, Time risks, and Psychological risks with Attitude towards behavior, Subjective Norms (TRA model) significantly affect the retailers' intentions in electronic trading transactions. Based on these results, our study gives an answer to the question of why COD is still a payment method with wide coverage despite many potential risks. Our work also points out solutions and recommendations towards the development of cash payment in particular and Vietnam's e-commerce market in general.