The “cash on delivery” (COD) service, or cash on delivery, is very popular among online shoppers. Did you know that according to 51% of Internet users making regular online purchases, the safest payment method is actually cash on delivery? Opting out of this delivery option can discourage customers from ordering, as well as reduce trust in your brand. See how much you’ll gain by opting for cash on delivery and what we can offer you in terms of handling cash on delivery amounts.
What is cash on delivery?
This is a special type of shipment that is paid for by the addressee at the time of collection. This means that the customer pays the specified amount only when the package is delivered and not at the time of ordering from the online store. The cash-on-delivery parcel is mainly opted for by people who want to eliminate the risk of fraud, but not only. For many people, this is the only acceptable form of delivery, so if you don’t offer them this option, you will lose potential customers.
What does it look like to send a COD package? The whole procedure is very simple. The customer places an order in the online store, choosing the payment option on delivery (cash on delivery). The seller then prepares the package for shipment and sends it through the selected company. The courier delivers the package to the recipient and collects the agreed amount of collection. After payment and release of the package to the recipient, the amount reduced by the commission is transferred to the bank account number of the seller.
Cash on delivery parcel service – what does this service consist of?
Do you use the services of several courier companies? We, as owners of the contract with postal and logistics operators, will provide you with a weekly summary statement of the amount of collections for orders. We cooperate with the largest carriers in Poland: GLS, InPost, Orlen Paczka, Geis Logistics, Pocztex, DPD, DHL and Raben.
How does it work?
All money from COD shipments goes to a separate sub-account for the customer. Couriers deposit the funds in the bank account number, and then send a report for a specific order. We consolidate this into one aggregate transfer and send it to the customer along with a report that lists specific shipments along with information on the courier companies that processed the order. Sending a shipment by courier has never been so easy. The recipient of a COD shipment can choose to pay by card or cash, which is a very great convenience and speeds up the transaction.
Cash on delivery – it pays off!
Until recently, the cash on delivery service was standard in most Polish e-shops. Today, however, many sellers have phased out this form of delivery. This is a big mistake! The reason why stores are reluctant to send COD shipments is that they have to bear the cost if the customer fails to pick up the package. Of course, the seller has the right to seek payment for the goods, nevertheless this is a rather time-consuming process that generally requires going to court.
However, consider the benefits associated with this form of delivery. The biggest advantage of paying cash on delivery is the ability to check the contents of the COD shipment. At the time of receipt of the package, the customer can check the condition of the package with the courier, thus gaining confidence that he received exactly what he ordered.
Who is most likely to choose cash on delivery?
It may seem that the prepaid shipping option is mainly chosen by older people. However, it turns out that the main group is 25-34 year olds. Gemius’ report: E-commerce in Poland 2023 shows that cash-on-delivery parcel pickup is very often chosen by people who place orders via social media. This may suggest that selling through social media, such as Facebook, Instagram and Tik Tok, is still considered quite risky.
Advantages of cash on delivery – what can you gain?
The introduction of cash on delivery to an online store has many benefits. See what you can gain by expanding your delivery options to include cash on delivery:
- Greater customer confidence – the ability to pay for the ordered goods on delivery of the package makes customers more willing to place orders. This is because they do not have to fear that they are dealing with a scammer who will not send the goods.
- Security of the transaction – the customer can pay for the ordered goods only after receiving them. It does not have to be limited to only one payment option – collection of payments can be done in cash or using a payment card.
- Reduce the number of abandoned shopping carts – some customers abandon the purchase of goods if the store does not provide a preferred delivery option. Sending a package on delivery is, for some people, the only possible form of payment processing for goods ordered online.
- Fast shipment of the package – COD package can be sent as early as the next business day, or even the same day. This is because the seller does not have to wait for the payment to be credited.
- Short turnaround time – the turnaround time of the download may vary, nevertheless, in most cases it does not exceed 5 days, starting from the business day after the day of delivery.
By giving customers a choice of payment methods, you show that you care about their convenience and security, which can result in greater trust and brand loyalty.
Shipping a package on delivery – what do you need to know?
Not all courier companies offer cash on delivery. We only work with the best operators who have experience with this type of service and charge a low commission on the amount taken. With us, sending COD will be easy and customers will receive their ordered goods on time.
How to send a package on delivery?
Not sure how to send a package COD? Nothing wrong with that! We will do it for you. See what is included in our services. Remember that we take an individual approach to each customer, so you can be sure that we will provide you with a comprehensive cash on delivery service.
Preparing the package for shipment
We will fill out an intuitive shipment form with the indication of the sender of the shipment, the amount of collection and instructions on how to pay. We will take care of the proper protection to make sure that the package survives transportation intact.
Monitoring of cash on delivery
We will provide you with the tracking number provided by the courier company. You will be able to check the status of a COD package in real time, so you will know immediately that it has been received by the customer.
Transfer of funds
We will pay the collection amount to your individual subaccount. The time of transfer of funds may vary depending on the courier company, but we will ensure that you receive the money in the shortest possible time. In case of complaints or returns, we will help you with the entire procedure.
Summary
Cash on delivery is a safe option for online customers who are ordering from a store for the first time and want to make sure they don’t fall victim to fraud. Shipping a package on delivery is a convenient option for both sellers and buyers. If you want to increase customer confidence and build a reliable brand image, don’t give up on this form of delivery. Of course, this is not the only option we can offer you. In addition to prepaid shipping, we also offer traditional shipping by courier, Parcel Post and Parcel Service. Take advantage of our services today. Call or write and we will work out a customized quote for services.
