What Is Cash on Delivery and How to Offer It?

If you sell products, you've probably wondered what cash on delivery is and whether it's worth offering it as a payment option for your business. It's one of the preferred methods among buyers in Latin America, since it lets them pay in cash right up until they receive their order.

In this guide, we'll explain what cash on delivery is, how it works, what its benefits are, what you should keep in mind, and how to implement it easily in your business.

What is cash on delivery and how does it work?

Cash on delivery, also known as COD, is a payment method that lets your customers pay in cash directly to the courier when they receive their package.

It's one of the most requested options among buyers who don't yet fully trust digital payments, or who simply prefer to pay only after confirming their order arrived in good condition.

Benefits and points to consider

Offering this payment method has clear advantages, but also some important considerations you should keep in mind.

Benefits

• Builds trust: the customer pays only after receiving their product, which reduces the mistrust of buying from a new store.
• Reaches more customers: adding more payment methods to your business expands your reach to buyers who prefer to pay in cash or who don't have access to digital financial services.
• Increases sales: by reducing checkout friction, cart abandonment goes down and the likelihood of completing the sale goes up.

Important considerations

• Sender's responsibility: if the customer doesn't pay upon receiving the package, you won't receive the sale amount, and if the package has to be returned to its origin, you'll have to cover any additional cost.
• Cash payment only: this method doesn't accept transfers or card payments at the time of delivery.
• Confirm the delivery in advance: sending a confirmation message to your customers before delivery helps reduce refusals and returns.

Offer cash on delivery with Envia.com

With Envia.com, you can manage shipments with cash on delivery (COD) and offer your customers a more flexible payment option. Once the service is enabled on your account, you just need to indicate the amount to be charged at the time of delivery; the courier will collect the cash payment when delivering the order.

Once the payment is completed, the collected money is settled to your account, minus the corresponding commission. To reduce refusals and return-to-origin costs, you can also implement tools that help you confirm with the customer that they'll be there to receive the order before delivery.

If you'd like to know the requirements, service availability, and setup process, check the complete guide in our Help Center.

Available carriers

Cash on delivery remains one of the most effective payment methods for earning the trust of new customers and increasing your sales. While it does involve certain considerations, having the right tools will let you manage it simply and securely.

With Envia.com, you can offer cash on delivery and manage all of your business's shipments from a single platform.