Discover the power of skyrocketing your eCommerce sales – Talk to an expert

Cash on Delivery

Cash on delivery (COD) is a payment method where customers pay for purchases in cash upon delivery of the goods or services. Cash on delivery (COD) is a type of transaction where the recipient pays for a good at the time of delivery rather than using credit. Cash on Delivery is the mode of payment where an agent of the courier company delivers an order to the customer and in return the collects the money for that order in cash. This cash is then deposited at the courier office, which is then remitted back to the seller’s bank account.

COD also known as cash on delivery is a method of payment for orders received by the customers at the comfort of their homes. The advent of eCommerce has made things pretty convenient around the world. This means customers can order anything online and get it delivered to their doorstep. These orders can be either paid for through online modes of payment such as card, wallet, UPI or through cash on delivery. In cash on delivery, when a parcel arrives at the customers’ doorstep, they have to pay the amount of the order in cash to the courier delivery agent, after which the courier delivery agent hands over the order to them. 

In academia, COD is studied within the fields of e-commerce payment systems, fraud detection, and risk management. Researchers investigate the advantages and challenges of COD, including convenience for customers, increased order acceptance rates, and potential risks such as payment fraud, order returns, and delivery disputes. Organizations implement risk management strategies for COD transactions, such as verification procedures, order tracking, and delivery confirmation, to minimize losses and ensure successful order fulfillment. By balancing customer convenience with risk mitigation measures, organizations can offer COD as a payment option while maintaining financial security and operational efficiency in e-commerce operations. Academic studies on COD also explore its impact on customer satisfaction, conversion rates, and strategies for optimizing payment processing workflows and fraud prevention mechanisms in online retail environments.

In addition, content marketing is a marketing strategy used to attract, engage, and retain an audience by creating and sharing relevant articles, videos, podcasts, and other media. Content marketing involves creating, distributing, and measuring the impact of your content on your audience and business goals. This approach establishes expertise, promotes brand awareness, and keeps your business top of mind when it’s time to buy what you sell. 

Explore other related terms only on

What are the rules for Cash on Delivery?

Delivery agents collect the invoice amount of a consignment from its consignee in the form of cash at the time of delivery. The collected cash is then deposited at the local office of the eCommerce company that made the sale. In this method of payment, both the buyer and seller are satisfied.

What are the disadvantages of COD payment?

The cons of COD for businesses are that there is a greater risk that goods will be refused on delivery, and there are costs involved in returning items. For buyers, it may be more difficult to return items if they have already paid for them at delivery.

What is the benefit of cash on delivery?

Cash on Delivery (COD) allows the customer to make the payment after receiving the product in hand- which is the most substantial advantage of this mode of payment. In other words, with Cash on Delivery (COD), there is no risk of losing money.

Related Glossary

Request A Demo