What Is Cash On Delivery?

Cash on delivery or COD is a way of paying for items that have been ordered online. Some see it as a different style of eCommerce, a bit like DropShipping

 Living in the 21st century our world has transformed into a global village thanks to the internet.

We have been given the ability to buy anything from the comfort of our homes, rendering going to shopping malls as a waste of time and energy. 

With the freedom of the internet, so came the scammers that would lift our faith from online product buying because one would pay via credit card or bank transfer in advance and in some rare cases the supplier comes out to be a scam. In order to encounter such heinous businessmen came the revolutionary Cash on Delivery method of paying for an ordered product. 

Paying Cash On Delivery is not solely cash, you can also pay via check or credit card when the product is delivered. 

In order to avoid online trolls, companies who send their parcels confirm twice on the provided phone number before shipping so that the customer-seller trust is built. Cash on Delivery made paying by electronic funds as obsolete and provided people no reason to keep a credit card.

How COD works?

You will not be charged for buying the product until the product has been delivered to you; this is the base of Cash On Delivery. In this way, you're confident your product would always be delivered to your house.

Buying via cash-on-delivery always means you are free from scammers who profit from fraudulent online shopping. Several retailers take consumers ' money and will not deliver the products they have ordered. Fortunately, with cash on delivery; once the goods have been delivered, then the retailers are paid.

Many favour alternative payment forms, such as online transfer of money, since the consumer may not be trustworthy. After all, after acquiring the products, some customers do not pay and hold major inconvenience for the selling company, the seller and the courier company, not to mention it is a great waste of resources to deliver a product with no advance payment only to find that the address written at the time of buying was fake.

How old is COD?

The most common method of cash on delivery is food delivery because it has been going on since restaurants started delivering. Food home delivery is very popular across much of the world these days, through cash-on-delivery.

Thousands of food items are reportedly delivered every day to households. Although lots of people are keen on cash on delivery for their food delivery, so that they can double-check the receipt while also tip the delivery guy, some people still pay via card while ordering their food online or over the phone.

Moreover, it is not just pizza or other eateries that can be ordered cash on arrival. It is important even to chairs, appliances, devices and much more to be ordered from e-commerce websites or arbitrage.

COD; As a buyer:

You have to check the product before you give your money as a customer who likes to purchase through cash-on-delivery. Don't settle for fraud and make sure the product is the same as you ordered. Verify that the box is authorized and handled. See if the postage is appropriate and if it is correctly packaged. Ensure that no clear mail abuse signs are there. In addition, it is necessary to authenticate the distribution service while purchasing with cash-on-delivery. So, make sure you have a legal supplier.

Courier companies that accept this payment form need the user to be physically present to perform this transaction at the delivery location.

When the package Is not successfully received by the customer, the courier will attempt another delivery attempt. If the recipient is not present even the second time, the package may be deposited in a nearby warehouse or returned to the salesperson. This also applies to a scenario where the customer refuses to accept the delivery.

Furthermore, the maximum price for cash on delivery purchases from couriers may be capped, and this sum is typically around $1000 and can differ from business to business.

This means that the customer can choose cash on delivery method of payment on items worth less than $1000 (differing from business to business however every business has a cap) Therefore, if you wish to order an item worth a lot more, then this option may not be available to you to pay when you receive the items.

COD vs. Advance Payment:

From an e-commerce point of view, online payment is a better choice because of the following reasons:

You are free from the fear that the client won’t pay for the delivered product when paying by electronic advance payment of the product. If you are a trustworthy seller, then you have a fear that the client may not be so.

Funnel Genie - What Is Cash On Delivery

Funnel Genie - Cash On Delivery Funnel

Online payments are helpful to the seller as you get paid in advance and you can dispatch your product with the courier company at ease that you have been paid for your product.

Online payments call for security and you have the assurance that the client won’t be missing out on the delivery of their product since paying in advance is a method of securing your delivery that the client will for sure accept the delivered product.


Cash on Delivery has been a great way to make payments in most parts of the world, it has been a successful mode of delivery and although there is some risk for the seller that the client might have put in fake credentials in the ordering form. There are a few security advances taken by most sellers.

If you are in the e-commerce line of work and wish to attract your buyers with the facility of cash on delivery then you can call the provided number once after they order and one more time after shipping, this is because if the phone number provided is fake that the customer will fail to confirm the delivery and save you the hassle of delivering a product to nowhere.

Cash on Delivery is a great feature for customers while an anxious method for sellers, electronic transfer, on the other hand, is the exact opposite.

1 thought on “What Is Cash On Delivery?”

  1. This is awesome, I had never heard about this style before, do you know where it’s most domiment?

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