Cash on delivery (COD), also known as collect on delivery or payment on demand, is a method of shipment that allows customers to pay for products or services only once they’ve received them. It’s often used by retailers that offer home or office deliveries, such as grocery stores, couriers, and laundry services. Customers can pay for their goods in cash, through a mobile card reader, or with checks, money orders, and credit cards.
The benefits of COD are that it offers more flexibility to customers and helps them manage their cash flow. However, a drawback of COD is that it can be more difficult for businesses to keep track of transactions as they pass through the supply chain. For example, if a customer makes a COD purchase with a check or money order, the delivery person must record the payment and then file it in an accounting system to ensure the payments are recorded correctly. This can lead to discrepancies between your ecommerce platform and point-of-sale (POS) system inventory quantities, which can cause delays in delivering merchandise and ultimately result in unhappy customers.
To help alleviate this problem, some eCommerce retailers use a cash on delivery feature that allows customers to select the items they want in their online shopping cart without paying for them until they receive them. Stitch Fix, for example, offers a COD option where customers can choose what they want to keep and return what they don’t. These arrangements help customers avoid the high cost of shipping, and can be a great way to increase customer engagement and boost sales. Отчитане на онлайн продажби с наложен платеж