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Cash on delivery process

What Is the Meaning of Cash on Delivery?

Cash on delivery is when a buyer pays for goods or services once they are received. Cash in advance, on the other hand, is when payment is made before the goods or services are shipped—for example, an e-commerce credit transaction

How Does Cash on Delivery Work?

Buyers place an order, for example, on a website, and request delivery. The customer does not make payment while ordering the item and chooses cash on delivery as a payment method. Once the order is placed, an invoice is prepared by the seller, which is attached to the parcel. The parcel is shipped from the seller to the address provided by the customer. The customer pays the deliverer or shipper using cash or card. The COD amount is then deposited into the account of the logistics partner or shipper. The logistics company remits the amount to the seller’s account after deducting the handling charges.

What Are Examples of Cash on Delivery?

Examples of cash on delivery are when customers pay for a pizza that is delivered to their home, when a courier delivers something that a customer has agreed to pay for when it is delivered, or when a customer picks up clothing from the dry cleaning store. Some online stores will allow cash on delivery.

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