How does

cash on delivery

work in eCommerce business?

is the most popular form of payment for online purchases. It allows the buyers to pay for the product via cash or card at the time of product delivery.

Cash on delivery

The delivery agent collects the cash from the buyer as per the invoice amount at the time of delivery.

COD payment is a simple process.

COD Methodology

The collected cash is later deposited at the local office of the online seller that made the sale.

payment can only be a problem if the order amount is high. However,

COD

offers early COD remittance and guaranteed payment within 2 days to the sellers.

C O D Flow

– Placement of order – Invoice-cum-delivery challan is prepared – Order and invoice are handed over to logistics company

Delivery boy is authorized to collect cash

The delivery boy collects cash and deposits it in the office

Delivery boy is authorized to collect cash

Logistics company hands over the cash to the supplier

COD

is a risk-free process

of buying online,

especially for first-time online buyers