What is Cash on Delivery (COD)?
In a cash-on-delivery (COD) transaction, the recipient pays cash instead of using credit for the product at the time of delivery. COD doesn’t necessarily require physical cash; thus, it is also known as collect-on-delivery. In this system, depending on a business’s specific policies, cheques and cards are accepted as payment methods.
Cash on Delivery is a way of payment for goods purchased online. Customers can use COD while ordering items from e-commerce platforms and websites and can pay for them after they have received the item. Cash or Debit/Credit Card Payments can be made to the delivery agent. COD service increases the trust between buyers and sellers. For example, this service is provided by Amazon. In this process, sellers either deliver the products themselves or work with a delivery service. The delivery agencies are paid after fees have been deducted; however, this increases costs and lowers the profit of the seller.