A Guide for Cash on Delivery Courier Services
TL;DR
- Cash on Delivery (COD) allows customers to pay upon receiving their order.
- COD offers security and flexibility but requires the buyer to be present at delivery.
- It’s not always available for high-value items or with all couriers.
- COD can benefit new businesses but carries the risk of refused deliveries.
Create an account for free!
Understanding cash on delivery courier services
You have maybe heard that you can pay for the items you ordered online, upon delivery. In the logistics and e-commerce sectors, cash on delivery (COD) courier services have emerged as a pivotal payment option, blending the convenience of online shopping with the trust and security of physical payment. But what is important to note is that not every seller or courier offers cash on delivery as a payment method.
This guide explains cash on delivery, more in detail why it’s key for cash on delivery courier services, and how it helps consumers and businesses.
What does cash on delivery mean?
Cash on delivery is a handy type of payment made on delivery rather than in advance via online payment or bank transfers. Unlike traditional payment methods that require upfront payment, cash on delivery allows customers to pay for their online purchases upon delivery.
This method isn’t limited to cash transactions; it also encompasses payments through credit or debit cards and other cashless options, making it a versatile choice for today’s diverse market needs. But, remember to check availability with the courier company first to see if they offer cash on delivery courier services to avoid potential issues upon delivery.
Pros and cons of opting for cash on delivery
When choosing a cash on delivery courier service, it’s helpful to weigh up the advantages and drawbacks. This payment method has grown popular for many reasons, but like anything, it has its downsides too.
Pros
- Trust and security: Paying when your parcel arrives offers peace of mind. Meaning, you do not have to leave your bank details online. You only part with your money once you’re sure the item has been delivered safely.
- Flexibility: It’s ideal for those who prefer not to use online payment methods or don’t have access to them. You can pay in cash or, in some cases, with a card at your doorstep.
- Simplicity: The process is straightforward. You order, receive, and then pay, without the need for online transactions or banking details.
- Smaller online purchases: Opting for cash on delivery is especially suitable for making smaller online purchases as couriers won’t accept cash on delivery payment for purchases of high value.
Cons
- Presence required: You must be at home to receive your delivery and make the payment, which might not be convenient for everyone.
- Payment limits: Some cash on delivery courier services have a maximum amount you can pay through cash on delivery, which could be a limitation for larger purchases.
- Availability: Not all courier services or sellers offer cash on delivery, limiting your options depending on what you want to buy or where you’re located.
- Control over expenses: Cash on delivery payment options can sometimes lead customers to make unwise decisions, and rash purchases as the payment are not due until the actual delivery date.
Using cash on delivery as a payment method suits many people, thanks to its security and simplicity. However, considering the need to be present for delivery and the payment limits can help you decide if it’s the right choice for you.
Furthermore, the trends have considerably shifted towards online payments, so this has become a prominent feature in our modernised and tech-savvy world, and we might just have to learn to accept that.
Read more about:
- Payment options for delivery services
- Best e-commerce shipping method
- Amazon fulfillment centers in Europe
Who offers and accepts cash on delivery?
Learning who accepts cash on delivery can give you a better understanding of how widespread and versatile this payment method is across different services. Here’s a closer look at the types of services that welcome this payment option, ensuring you can shop or order with ease, knowing you’ll pay only when your items arrive safely in your hands:
- Food delivery services: Many food delivery companies offer cash on delivery as a convenience to their customers.
- Courier companies: Certain courier companies offer cash on delivery courier services, ensuring secure payment upon delivery.
- Online shops: A big number of online shops provide cash on delivery to cater to customers who prefer it over digital payment methods.
Note: The following information is general; therefore, you would have to check with the selected store/restaurant/courier company as they vary in different countries.
How do cash on delivery courier services work?
Understanding how cash on delivery courier services operate can demystify the process for both sellers and buyers, making it a preferred choice for many. Here’s a simplified breakdown of the cash on delivery process from start to finish:
- Placing an order: The customer selects the cash on delivery option when making an online purchase, indicating their preference to pay upon delivery.
- Order processing: The seller prepares and hands over the goods to the courier, indicating that payment is due upon delivery.
- Shipment: The goods is dispatched. Both the seller and buyer can track its journey to the delivery address.
- Delivery and payment collection: The courier delivers the goods. The customer pays for their order at this point, which can be in cash or through other available cashless options provided by the courier.
Do logistics companies offer cash on delivery courier services?
Courier companies that allow cash on delivery as a payment method require that the receiver is physically present at the delivery address to finalise this transaction.
If no one is there to accept the parcel, the driver will have to make another delivery attempt. If the courier or driver repeatedly fails to deliver the package because the receiver was not present at the delivery address, the parcel will be stored in a local depot or sent back to the seller.
Moreover, courier companies limit the maximum amounts for cash on delivery shipments, and this number can vary from company to company but is usually around 1000€. If you’re buying something of a higher value, cash on delivery method might therefore not be possible in this case.
Read more about:
Does Eurosender offer cash on delivery for courier services?
Unfortunately, at the moment Eurosender does not offer cash on delivery for courier services. However, we offer different payment methods, starting from credit and debit cards, PayPal, bank transfers, Apple Pay, Google Pay and user credits.
Customers registered on our platform, whether businesses or individuals enjoy excellent benefits and discounts up to 10% when paying with user credits.
Common questions about cash on delivery courier services
Cash on delivery is a popular payment option for many, but it comes with questions about how it operates, its costs, and the policies around returns and checking products. Here are answers to some frequently asked questions about cash on delivery services.
Are there any extra fees associated with cash on delivery services?
Yes, some courier services may charge a small additional fee for cash on delivery transactions. This fee covers the extra service of handling cash payments and the process of collecting and transferring the payment to the seller. It’s always a good idea to check with the courier or the seller beforehand about any extra charges for choosing the cash on delivery option.
How do returns work if I pay with cash on delivery?
Returns for cash on delivery purchases generally follow the seller’s return policy. If you decide to return an item you purchased via cash on delivery, you’ll usually need to contact the seller directly to initiate the return process.
Refunds for cash on delivery transactions might be issued through bank transfers or store credits, depending on the seller’s policy. It’s important to note that the initial cash on delivery fee (if there was one) might not be refundable.
Can I check the products before paying?
This depends on the courier service’s policy and the agreement they have with the seller. Some courier services may allow you to open the package and check the contents for completeness and intactness before making payment.
However, this is not universally practised, and you might not always be allowed to fully check the product functionality until after payment is completed. It’s advisable to verify this aspect with the courier or seller before placing your order.
Online sellers: should you offer cash on delivery?
As a small e-commerce owner, working with the courier companies offering this option of payment could be a smart decision. Cash on delivery would especially make sense in two cases:
- If you’re a newly-established company that doesn’t have many online reviews or other proofs of credibility yet as offering a cash on delivery payment can make the buyer more confident in the reliability of the company. However, this method of payment is usually the choice of people who aren’t tech-savvy or, for some reason, tend not to trust online transactions. If such customers are among your target audience, choosing to offer cash on delivery payment could lead to more new customers and consequently to increased sales.
- Additionally, offering this payment option also gives the possibility of purchasing the customers without sufficient funds on their credit card or to the younger customers who don’t yet own one, so this could also target these types of audience.
However, sellers offering this type of payment should also take into consideration possible complications that may arise. As the buyer is not obliged to accept delivery, he or she can, therefore, refuse it and the seller might end up having to pay for additional costs of return delivery.
Clients choosing this type of payment are usually also less committed to the purchase than the ones who paid for it in advance, so refused shipments are really not such an uncommon case. Explore the ins and outs of cash on delivery courier services, including how they work, benefits, and common questions.
Read more about:
Why do online sellers prefer online payments over cash on delivery?
If you’re an e-commerce business or you run an online shop, online payment is a better choice because:
- You avoid the costs of a refused delivery– if you want to make sure that the charges of return delivery are not imposed on you if the buyer decides to refuse the package.
- You get paid for your service faster – online payment also means that the funds will be transferred to you more quickly than if you had to wait for the cash on delivery payment.
- You can enjoy increased security – not only for the buyer but also for you as a seller. You will know that you will get the money on your transaction, and you will, therefore, be more at peace.
- It’s available in every country– some countries (like Sweden) won’t even accept cash on delivery payments as they’re trying to distance themselves from cash payments and only encourage online or cashless payments. We believe this trend is here to stay and that cash payments are already on their way to become obsolete.
Still have questions?
Check our delivery guides for more information.
Create an account for free!
About the author
Marcel Nahtigal is Head of Marketing at Eurosender, specializing in digital strategies to enhance customer connections in logistics.
