cod
- Customer places an order and selects “Cash on Delivery” at checkout.
- Seller confirms the order, prepares the package, and attaches an invoice.
- Delivery agent picks up the package and delivers it to the customer.
- Customer pays cash upon receiving the order.
- Seller receives the funds after the agent deposits the cash (minus applicable fees).
- No upfront payment is required, which builds customer trust.
- Customers don’t need cards or UPI—COD is convenient and accessible.
- Sellers experience higher conversion rates in cash-preferred markets.
- Over 60% of Indian e-commerce orders used COD in 2023.
- Fake orders or cancellations are risks, but can be reduced by blacklisting users or taking partial prepayment (e.g., 10%).
- COD fees usually include delivery charges plus a cash handling fee (2–5%).
- Example: For a ₹1,000 order with a 3% COD fee, the total payable becomes ₹1,030.