Konga has announced that it will become a prepay only platform in order to better satisfy their large customer base. This means Konga customers would now have to pay ahead of delivery.
“In recent years, we have explored several solutions for payment and ecommerce in Nigeria and concluded that prepay is the necessary approach for our business and the market,” Shola Adekoya the CEO said.
“Given the cost of inflation and increasing challenges managing payment-on-delivery, as well as the resulting level of order cancellations on the platform, we had to take this decision.”
He said Konga would continue to review other ways to provide payment-on-delivery to customers, but for the time being, it will remain a prepay only platform.
“We have enabled a contact seller button that allows open communication between and seller and buyer in cases where pay on delivery transactions still want to be carried out directly between the seller and the buyer.
“Konga.com transformed to a prepay only platform in mid-November 2017, and there has been a solid shift towards online payment by customers. “Since we switched over, we have seen a marked increase in online payment which is a much more seamless experience and we sincerely appreciate all our customers who have trusted us enough to begin paying online for their orders,” Adekoya added.
He went on further to explain the larger implication for the business when he said “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. In line with this new approach, today we are announcing an internal restructuring to align our operations with prepay only model and our intention to stop warehousing activities. Unfortunately, this will result in a headcount reduction. Letting go of colleagues and friends is not an easy decision, but one that naturally stems from these changes.”
He said customers, merchants and franchisees should expect to see an improvement in service quality, which continues to be the core of Konga business approach.
“We 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.”