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Shiprocket encyclopedia

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COD – Cash on Delivery and its Importance

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. 

The cash amount collected by the courier is submitted at the regional office of the courier company, after which it is remitted to the seller’s bank account upon a minimal COD fee. 


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Most of us into an eCommerce business and online shopping may be quite familiar with the term cash on delivery or COD.

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