What is shipment cod or cod in shipping? COD is an acronym used for logistics, meaning ‘Changing destination’. Once you have made a booking, there may still be a change of destination if you need to. This is what we call destination change.

shipment cod

What Is Cash on Delivery (COD)?

Cash on delivery (COD) is a type of transaction in which the recipient pays the best at the time of delivery. The terms and conditions of payment accepted vary depending on the payment terms of the purchase agreement. Cash on delivery can also be called a collection on delivery because delivery can allow for cash, check, or electronic payments.

cash on delivery is a form of payment made on delivery rather than in advance by online payment or by bank transfer. It is replaced by the word “collect on delivery” as it nowadays also includes credit or bank card transactions and other forms of payment without charge. So, the word does not mean that you should have money in the form of tangible money. However, you should look at the company you expect the goods to come from whether this payment method is available or not.

Understanding Cash on Delivery (COD)

A cash on delivery transaction may take different forms and may affect the company’s accounting in different ways. Public companies are required to use an additional accounting system under generally accepted accounting system (GAAP). In the calculation of additional funds, the company recognizes revenue at the time of the transaction and records payments in the accounts available if the payment is deferred. Private companies can use accrual or accounting. In accounting, a company must wait for a record to be made as a profit until payment is received.

If the customer deals with the seller in person and the customer buys from an easily accessible list, payment is collected at the time of sale and this can be a form of cash when it is delivered. Under the additional calculation method, this results in an acceptable time for short accounts and high efficiency.

With agreements received for long-term accounts, companies can set up COD shipping that allows the customer to postpone payment until delivery time. On some email order platforms such as eBay, COD can be used to reduce the risk of fraud between buyers and sellers. Overall, COD does not require payment from the buyer until they have received their purchase.

COD Considerations

For many businesses, in-person COD can provide immediate payment for goods and services. This is an important financial benefit because it can significantly reduce the number of business days earned.

COD simply has a shorter delivery time than standard invoices. This is advantageous because the customer is required by the consultant to pay upon delivery. COD shipping gives customers a profit while saving to make a full payment. Alternatively, it also increases the risk of a customer not planning to pay, leaving the purchase refundable. Returned purchases forego intended profits and may require shipping return fees which are both disadvantages for the merchant.

For merchant, offering a COD payment option can boost consumer confidence in a new company that does not yet have a solid product vision. In general, established companies are not willing to take the risk of COD shipping, opting for more interest rates and late payment programs. In some cases, however, COD may be more profitable than debt because the seller receives full payment upon delivery. COD can also help merchants by avoiding further risks of consumer fraud, suspension payments, or electronic card disputes.

In some countries like India, cash on delivery sales increases online trading. COD transactions can also appeal to consumers who do not have credit or other payment methods.

Important: If a company allows for COD shipping, it is willingly giving the customer more time to make a payment with somewhat less risk than a credit purchase.

Who accepts cash on delivery (COD)?

Following are the general information about who accepts cash on delivery (COD);

  • The delivery of many food allows you to pay on delivery

  • Some postal companies allow for this payment method

  • some online stores

The COD Methodology

:diamond_shape_with_a_dot_inside: The process of COD ordering mode is simple. Delivery agents collect the invoice amount of cargo from the sender in the form of cash at the time of delivery. Money is collected and deposited in the local office of the eCommerce company that sold it. With this payment method, buyer and seller are satisfied.

:diamond_shape_with_a_dot_inside: From a merchant’s point of view, managing money is easy and does not involve any complicated procedures. Revenue from the sale is available immediately, and the chances of failure to pay are eliminated. COD can only cause problems if the order value is too high.

:diamond_shape_with_a_dot_inside: Shiprocket offers an Early COD feature that you can use to control your cash flow and receive payments without holding back. With the Early COD option, we guarantee the release of COD within two days.

:diamond_shape_with_a_dot_inside: From a buyer’s point of view, money in delivery mode is recommended as payments are made only after the goods arrive. In addition, in cases of defective or improper delivery, the buyer may refuse to accept the parcel. There are a few risks as payment is made only after delivery of the ordered product. Payments can be suspended until delivery of the required item.

:diamond_shape_with_a_dot_inside: The COD payment method is popular in India, and there are many reasons for this. Also, Indians are more comfortable spending money than using bank or credit cards to make payments.

Do courier companies accept cash on delivery (COD)?

Courier companies that allow this payment method require the recipient to be present at the delivery address to complete the transaction.

If no one will receive the package, the driver will have to make another effort to deliver. If he repeatedly fails to deliver the package because the recipient was not present, the parcel will be stored at the local depot or returned to the seller. In addition, courier companies limit the maximum amount of money in delivery, and this number may vary from company to company but usually around € 1000. If you buy something of high value, cash on delivery (COD) method may not be possible in this case.

Is making an online payment a better alternative for the buyers?

For the buyer, online payment is better for many reasons:

:arrow_right: It gives you better expenses control

cash on delivery (COD) payment options can sometimes lead customers to make unwise decisions, and buy in haste as payment is not paid until the actual delivery date.

:arrow_right: The buyer needs to be physically present to pay

This means that the parcel cannot, for example, be left in a safe location or in the neighborhood if the recipient is not at home.

:arrow_right: Increased security

Banks and developers are working on technology to ensure greater security and online payments remain available.

:arrow_right: Easy, fast and reliable

payments made online are sometimes scary for some people. However, everyone should agree that it is easy to do and very understanding. Shopping online should only take a few minutes.

:arrow_right: COD is the future of payment methods

Trends have changed dramatically in online payments, so this has become a prominent in our modern world and technology, and we may need to learn to embrace that.

When is it common to pay cash on delivery (COD) as an end-user?

Some of the reasons for choosing cash on delivery (COD) payments could be:

:small_blue_diamond: The ability to attend the address provided on the day of delivery - is therefore determined by those who have retired or have flexible working hours.

:small_blue_diamond: It is worth making small purchases online - couriers will not accept cash on delivery (COD) payment of high value purchases.

:small_blue_diamond: You do not need to leave your banking details online

Should sellers be in favour of online payments?

if you are e-commerce, online payment is a better option because:

:small_blue_diamond: You avoid the cost of refused delivery - if you want to make sure the cost of delivery is not set on you if the buyer decides to refuse the package.

:small_blue_diamond: You get paid for your service faster - paying online also means the money will be transferred to you much faster than you should be waiting for money in delivery payment.

:small_blue_diamond: You can enjoy increased security - not only for the buyer but also for you as the seller. You will know that you will earn money from your transaction, so you will have peace.

:small_blue_diamond: Available in all countries - some countries (such as Sweden) will not accept cash on delivery (COD) payments as they try to distance themselves from cash payments and only promote online or cashless payments. We believe that this practice will continue and that cash payments are on the verge of becoming obsolete.

Should sellers look for services offering this option?

As a small e-commerce owner, working with mail companies that offer this payment method would be a good decision. COD can make sense especially in two cases:

:one: If you are a newly established company that does not have many online reviews or other proof of loyalty at the moment as you are offering money on delivery payments it can make the consumer more confident in the company’s credibility. However, this payment method is often preferred by people who are not tech-savvy or, for some reason, often distrust online transactions. If such customers are among your target audience, the choice to give money in delivery payments can lead to more new customers and as a result increase sale.

:two: In addition, offering this payment method also offers the opportunity to buy customers without enough money on their credit card or for small customers who do not have one, so this can also target the type of audience.

However, merchants who offer this type of payment should also consider potential problems. As the buyer is not obliged to accept the delivery, so he can refuse and the seller may end up paying additional shipping delivery costs. Customers who choose this form of payment usually have less commitment to the purchase than those who have paid in advance, so rejected referrals are not uncommon.

Frequently Asked Questions

Following are some frequently asked questions by people related to shipping COD;

1. Does UPS ship COD?

The COD service is available in individual packages at any level of service. UPS submits COD. You may request that UPS only accept cash orders, cashier checks, official bank checks, or similar instrument for a specific COD amount.

2. Which Courier provides cash on delivery?

There are couriers from DTDC, Com Express, GoJavas, Gati and Professionals, which also offer COD services. Please note that these rates are highly negotiated and flexible.

3. How do I pay cash on delivery?

Pay for delivery orders can be paid using Cash or other digital payment methods using the Amazon SMS Pay link option. Please check with your service provider if you can pay using the Amazon SMS Pay link. With this payment method, we accept Visa, MasterCard, Maestro and Rupay cards as well as credit cards from all banks.


With Collect-on-Delivery, popularly known as COD, you can arrange for your customer to pay when you deliver goods, USPS collects payment in cash or by check. If you are paid in cash, you will be sent a USPS Money Order for payment.

With Collect-on-Delivery, more commonly known as COD, you can arrange for your customer to pay upon delivery of the merchandise, with the USPS collecting payment in either cash or check. If paid by check, the USPS will forward the check on to you. If paid in cash, you’ll be sent a USPS Money Order for the value of the payment. And, all packages are insured automatically against loss, breakage or theft to up to $1,000, automatically.

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