Benefits Of Providing Cash On Delivery to Your Customer in 2022

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    Cash on Delivery (COD) is an online payment method that requires payment to be done online. The orders made using Cash on Delivery will be set to processing until the payment is made on delivery of the package or by your shipping method.

    As the store owner, I want to verify that payment was received before marking orders in WooCommerce.

    cash on delivery
    cash on delivery orders

    Reasons your ecommerce businesses should provide Cash On Delivery?

    Although they have quick online payment options and bank transfers, many companies offer COD services to their customers. This is because new businesses can benefit from COD because it can allow them to demonstrate more trust to the customer by ensuring that the order will be delivered and payment will be accepted after that.

    It permits suppliers to target customers who do not have credit cards. It can also target customers with no money in their bank account. Therefore, if the client has cash but does not have the position to make online payments, COD can convert them also. Many customers are also skeptical of the convenience of online payment; therefore, they can all be converted using COD cash on delivery.

    Sometimes some customers require COD for various reasons, such as those who don’t have enough funds; however, they know they could receive some money at the time of delivery; also, some consider the COD cash-on-delivery method the most reliable and rewarding one. Also, it safeguards businesses from fraud involving the identity of their buyers.

    How Does Cash on Delivery Work?

    Customers place their order, for instance, on the internet and ask for delivery. The customer doesn’t make a payment when purchasing the item and instead chooses to pay cash-on-delivery as a payment method. When the order is made, the invoice is created by the seller. It is then attached to the parcel. The vendor will deliver the parcel to an address supplied by the purchaser. The customer has to pay the delivery person or shipper with money or a credit card. Then, the COD amount is transferred to the accounts of the logistics partner or the shipper. The logistics company transfers the funds to the seller’s account after subtracting the handling fees.

    Benefits of providing Cash on Delivery to your customer

    Customer satisfaction and loyalty improved.

    cash on delivery services

    COD lowers the risk for those who would rather test products to see if they like them before investing their hard-earned money, especially if the item purchased must be tested in various sizes and shades. The option of COD is particularly helpful for companies that haven’t yet established an impressive brand name or reputation since customers can experience the product without spending money in advance. Since many well-known corporations don’t permit COD, providing this option could improve the odds of happy customers remaining loyal to your company.

    May increase the rate of order completion.

    If your company often faces abandoned carts or unfinished order processing, a COD option may be the perfect solution to encourage customers to finish the order successfully. In addition, because they don’t need to commit to spending money upfront, they could be more inclined to go through the checkout procedure.

    May shorten payment cycles.

    If COD is offered in contrast to the traditional 30 or 60-day terms for invoicing, the result is typically shorter delivery times and fewer days of outstanding sales, which is known as DSO. This could increase the cash flow of a company.

    Different types of cash on delivery payment

    • Cash
    • Check
    • Online card payments
    • Mobile payments

    Mobile payments

    Mobile payments
    cash on delivery example

    If a postal worker or delivery person is carrying an electronic card reader for mobile on their device, they can pay for goods delivered in a matter of minutes. Mobile payments can be used for deliveries from restaurants and service on demand.


    Delivery drivers and couriers may accept cash payments. But, this payment method can pose a security risk because it could cause couriers to be targets of crimes.


    Checks are an excellent alternative to mobile payments when you require items that need to be paid immediately after delivery. However, this payment method isn’t the best option for security as you won’t be able to tell whether a check bounced until the goods are delivered to the buyer.

    Online card payments

    If you wish to allow customers a few days to decide whether or not to purchase your products online, card payment is the ideal solution for all concerned.

    Alternatives to COD

    Cash-on-delivery is a way of payment that is still popular across many countries; however, there are some disadvantages for both the buyer and the seller. One of the main negatives is that the product can be returned or refunded. Cash on delivery, or COD, is an uneasy method to conduct business. It’s a pain to locate a local post office or bank to change your cash in exchange for cash.

    Certain businesses provide alternative payment options like paying using PayPal so that you can avoid the drawbacks. Pay by card is also available to make purchasing on the internet easier and give customers more freedom to pay. This is also advantageous for sellers since it helps them save the stress of getting payments from buyers. The most well-known methods are bank transfer checks, credit card, electronic funds transfers, and money orders. Other options.

    With the advancement of technology, it is possible to find new ways to make faster purchases. One option that remains is cash-on-delivery as a method of payment. Cash on delivery is an option for those in markets where people aren’t able to have access to credit card transactions. 

    In the past, retailers were not willing to offer cash-on-delivery as an alternative payment option due to the possibility of fraud and the lack of trust from customers. It is nevertheless important to recognize the inherent risks mentioned above. It’s also important to know that numerous websites provide cash-on-delivery with the use of technology to spot fraud before it happens.

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