eCommerce

COD Shipping (Cash on Delivery)

A delivery method where the recipient pays for goods upon receipt.

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Updated 2025-10-01

Definition

COD allows customers to pay in cash or electronically at the time of delivery instead of paying upfront.

Overview

Overview

COD shipping is popular in eCommerce, especially in regions with low online payment adoption.

Advantages

  • Encourages purchase from hesitant customers
  • Reduces fraud risk
  • Flexible payment for consumers

Challenges

  • Increased handling and risk for delivery companies
  • Higher return rates if payment is refused

Example

A courier delivers a package to a customer, who pays the delivery agent in cash upon receipt.

Tags

#COD#Cash on Delivery#eCommerce#Payment

Related Terms

Delivery management
Order fulfillment
Courier Shipping