Cash On Delivery Project StoryDRI: James Fernando

Rationale

Lazada and Zalora, the two most legit and successful, e-commerce stores in the Philippines were able to crack the code of e-commerce PH by offering Cash on Delivery (COD). A study made Pesopay and Paycard has proved this (infographic below).

73.4% of Filipinos are unbanked while 40.4% of Filipinos are online shoppers

89% of online shoppers are concerned about security, 88.5% about payment methods while 88.5% about speed of transaction

33% of online shoppers prefer cash payments, while only 8% prefer other payment methods which include bank deposits and cash remittances

While most Teetank shoppers are based in the provinces, we believe that offering COD in Metro Manila would boost sales exponentially. I believe that there are less shoppers in MM because t-shirts are available everywhere (malls, Divi, Baclaran, GH, etc). Because of the ease of going to these places, paying online to buy t-shirts is on a disadvantage.

These are the reasons why I think COD will propel Teetank to another level.

Recruiting Personnel

In recruting our first Teetank Rider, his experience and knowledge in delivery could be one of the most important factor to make daily operations as smooth as possible. We thought that we would have to buy our own vehicle, but it appears that Xend hires riders who have their own motorcycles. I’m currently asking help from friends, Kuya Danny and Kuya Jess to be introduced to some riders who are thinking of moving out of Xend. I have already created a recruitment material that offers benefits better than Xend’s (Update as of June 3 17:32)

It turns out that we could use another way. An old DOTA-mate of mine is looking for a job. He was a former jeepney driver and former food chain staff. The advantages of getting him are young looks and possession of professional driver’s license. Another is that we won’t have to rely on others’ motorcycle vehicles. The disadvantages, on the other hand, are lack of experience and lack of skills in Metro Manila delivery. I am going to conduct our first interview with him tomorrow,

June 8 4PM, at Teetank HQ. This is my first ever experience of interviewing a candidate for employment. I have already prepared the materials and questions that reflect what Teetank is all about. I am trying to sound and talk like a formal person, hope it goes smooth. As of now, I am undecided but ready for the two options. (Update as of June 8 22:00)

My old DOTA-mate refused the job but his friend got it. He’s a graduate of criminology and he already has a student’s license. He’s okay with the terms. (Update as of June 9 19:00)

Vehicle

My brother’s sideline is a buy-and-sell business. Today, a Rusi motorcycle arrived at home. I am planning to buy it for 16,000 PHP. (Update as of June 8 22:10)

System

There are many factors that have to be considered in our system. As of now, all I have done is randomly list them down. (Update as of June 8 23:00)

Schedulingo Assignment of route could be done on an every-other-day

routine. MW could be north while TTH could be south. Friday is flexible while Saturday is both.

o Shoppers could schedule their COD process on Saturdays only (?) During weekdays, they would have to be physically present or leave cash at home.

Mappingo Must buy a detailed map of Metro Manila by street

Organizationo COD Head must always carry his daily route. It will be

printed at Teetank HQ, and has to be signed by the receiver of the package.

Content

Packaging

In creating the best packaging material, we focused on what we want shoppers to feel when they open the package. We cannot make a

normal plastic (sando) bag because it does not make shoppers feel anything. To establish that we are a legit E-commerce Store / Art Label, we could create a Xend-like Pouch without adhesive. We cannot put adhesive because shoppers would ask for multiple sizes for fitting purposes. We decided we could print stickers instead to seal the pouch.

The challenge now is to maximize the purpose and uses of the pouch at the most affordable price. There could be some branding and call-to-action elements on its design. We first have to talk to determine how to optimize costs (Update as of June 3 17:40)

Now I’m starting to think, do we really need a pouch? What are other options? (Update as of June 3 18:16) We need a good one because soon we shall be removing free Teebags to increase our margins.

Adrielle and I have decided that we are sticking to the Teebag as of now. We could have third parties print our waybill-stickers. Soon enough, we are going to look for a new supplier of Teebags in order to increase our profit margin. However, we could consider printing a delivery pouch instead when the time comes. Next in line is designing and printing stickers. (Update as of June 8 22:15)

Budget

CAPITALMaterial Amount

Motorcycle 16,000 PHPMotorcycle Registration 1,000 PHP

Stickers 2,000 PHPCompany Tees 9,000 PHP (180 x 50 pcs)

Training 1,500 PHPDelivery Bag & Rain Coat 1,000 PHP

Dual Sim Phone 1,000 PHPTOTAL 31,500 PHP

MONTHLY EXPENSEMaterial Amount

Salary (Probationary) 9,120 PHPInsurance 300 PHP

Gas 2,000 PHPCall & Text Load 600 PHP

TOTAL 12,020 PHP