What is Cash On Delivery?

What is Cash On Delivery

What is Cash On Delivery?

Find out what is Cash on Delivery and how it can help you out!


Online shopping is great. There is nothing better than shopping from anywhere in the world, and wait for your items to reach wherever you want it to arrive. Since online shopping has become our lifestyle nowadays, it has also opened up various flexibility so customers can enjoy online shopping to its fullest. Besides offering a variety of shipping options, customers also have a variety of choices in payment methods.

One of these convenient and safe payment methods is Cash On Delivery (COD). The internet is vast and also full of scammers trying to make a quick buck. Putting any bank information online can be a risk, and Cash On Delivery ensures your bank information is safe and secured from online hackers or scammers. Although the term is Cash On Delivery, most services now also accept card transactions.

How does COD work?

The term is called Cash On Delivery because you will only pay when your item reaches you. This way, you can ensure that your product safely arrives at your house before paying for it.

By using Cash On Delivery, you will be free from scammers who weren’t going to send you the legitimate product in the first place. Yes, there are people like this on the internet, and you should always be careful. On the other hand, retailers prefer online money transfer as it ensures that a product has sold.

Retailers also prefer this because sometimes customers are the unreliable ones who do not pay for their goods even though they have received it.

How long has Cash On Delivery been around?

Food delivery service was the very first type of service that really used Cash On Delivery.

Everyone uses a food delivery service at least once in their lifetime. There is a mixed feeling in terms of who prefers Cash On Delivery or online transfer. Some feel that Cash On Delivery is better because you can always ensure your order is correct before paying for it. Also, many things can happen along the journey of your item arriving at your doorstep.

Sometimes, your item could take longer than expected, or there are unexpected delays. If you did not want your item in the first place, you can still easily cancel it without worrying about getting a refund.

On the other hand, some people think Cash On Delivery is inconvenient because you always either need to have cash, or you need to wait to complete the transaction when all you want to do is dig into your order.

People who prefer using online money transfer enjoy seamlessness and simplicity. Of course, this does not just apply to food delivery services, as now almost every delivery service also offers Cash On Delivery to provide more payment options to customers.

Cash On Delivery for Buyers

As a buyer, it is your responsibility to check if the right item has been delivered to you. Ensure the box is handled correctly, including all the postage prices, and details are the same as your order. You should also check to see if there are any damages. If there are, you should claim compensation.

This form of payment is secure because delivery companies also usually ensure that the actual buyer is present and signs for the package. If the delivery man does not successfully deliver the item, a few more attempts will be made.

If the buyer is unreachable and the issue can’t be addressed, it will be held in a nearby warehouse or returned to the sender. If a customer refuses a delivery for any reason, the item will also either be sent to the warehouse or back to the sender.

Also, Cash On Delivery payment options are usually capped, but this varies from service to service. What this means is that the choice is only available for items below a certain amount.

Which is better? Cash On Delivery or Advanced Payment?

If you ask someone from an eCommerce viewpoint, online payment is, of course, the better option for several reasons.

Firstly, retailers won’t have to worry about customers not paying for the products they receive.

This scenario applies to trustworthy sellers with not so reliable customers.

Online payments are preferable for sellers as it protects them from having to cover any unreceived payments. Having said that, you do have to ensure that your payment gateways are safe for customers.

Wrap Up

Cash On Delivery has been around for a very long time already. It can offer a safe and easy payment option for those you prefer.

This mode of payment has been successful in helping both parties so far, except in some particular cases where you might get either unreliable buyers or sellers. Sadly, this is inevitable. If you have an online store or any delivery service for that matter, offering Cash On Delivery is a great way to attract customers.

Customers will be glad for the options and flexibility that they can choose this option whenever they want. You might have customers who are really wary about online shopping or insecure about saving their bank details.

If you do not offer Cash On Delivery, you will be missing out on this whole customer base. Sometimes, a customer might buy an item for a minimal price, for example, between $1 to $5. Customers will usually have this lying around the house for convenient Cash On Delivery transactions.

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