WearYouWant: cash on delivery is secret to success for e-commerce startups

Bangkok-based B2B2C fashion e-commerce site WearYouWant, backed by DMP and Asia Venture Group, has just discovered a business model that could just puts its books in the black: offering a cash on delivery (COD) service.

Last time we talked to the startup, it was skeptical about COD and was afraid that it could be a loophole for customers to return merchandise, yet it wanted to try as it saw the high potential for sales growth. Last month, the company made it happen by working with aCommerce, an end-to-end e-commerce solutions company.

Growing fast

In the last three months, WearYouWant’s revenue grew more than 100 percent. According to the startup, October was the best month without comparison. It’s purely organic growth, as the company didn’t put any more money into marketing.

The site conversion rate is also growing. Martin believes that this is a result of partnerships with several banks to create trust for the brand.

The COD model is doing quite well so far. Martin Toft Sørensen, WearYouWant’s co-founder commented on the company’s exciting numbers:

The conversion rate on COD is higher than bank transfer and bank service combined. The pay ratio, which is people who add the item to the cart and actually pay for it, for COD is 90 percent With bank services, sometimes customers pick the products, but they never go to the bank to pay.

Better branding and logistics

Being an aCommerce customer allows WearYouWant to have a better logistic flow without creating any more trouble for the startup’s merchants. Martin seems very happy with his decision on the new venture:

Working with aCommerce also allows us to have our branded packaging. It means a lot to us since we’re still a young company. It helps us when people see our name. Just like how Amazon boxes are recognized. Plus aCommerce allows us to do target marketing, which helps a lot.

With the pace the startup is growing, Martin told Tech in Asia we can expect a series A funding announcement by the end of the year.

(Editing by Paul Bischoff)