Cash on Delivery
Cash on delivery (COD) means customers pay for an item after arriving at their home or business.
Updated: November 4, 2023
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Cash on delivery (COD) means customers pay for an item after arriving at their home or business.
The customer selects COD instead of paying through credit card or other electronic methods during the e-commerce checkout process. Payment must be provided when the shipment arrives. Cash and check are accepted by most delivery services, but some also take debit and credit cards.
The concept of cash on delivery is useful when segments of the population don't have bank accounts or if there is a general distrust of online payment. Shipping software are used by sellers to find couriers and delivery services to use for COD services worldwide. The packages can be tracked at all stages of the shipping process and integrations can be created with various e-commerce sites and payment methods.
Cash on delivery is often integrated into the existing payment systems by retailers along with methods such as credit cards, debit cards, bank transfers, and digital wallet payments. Extended customer reach, Increased order completion, Improved trust and Shorter payment cycles are benefits of cash on delivery.
Companies should find a trustworthy delivery partner, track customer behavior and communicate effectively when using cash on delivery as a payment option.