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What's Cash on Delivery?

Have you ever had a situation where someone wanted you to ship something to them and said that they would cover the postage fees but finally didn't do it and you had to pay for it from your own pocket? Hopefully not, but unfortunately, such things happen - and most people find asking for getting their money back quite awkward.

However, there's a way to avoid such moments that most people nowadays don't even remember about - and it's called cash on delivery. Below, you will find all the information you need to know about what cash on delivery payment is, how COD service works, if it is a good idea and whether Packlink offers such a service.

Cash on Delivery - What Is It

Let's start from the basics - what's cash on delivery? Cash on delivery, also simply known as COD, is a delivery service with which the delivery payment is done by the recipient once the courier brings the package to them and they accept delivery rather than before the parcel is sent. The term is often used interchangeably with 'collect on delivery', as nowadays most companies allow you to pay with a payment method of your choice (usually a debit or credit card, or online payments) rather than specifically with cash.

One thing worth mentioning is that most courier companies offering cash on delivery payment have a limit of the maximum amount the customer receiving the parcel is to pay. This amount can vary depending on the company you use, so if you're planning to send a package with payment being collected on delivery, you should check what that amount is beforehand.

Is COD a Better Option than Online Payments?

The truth is that the answer to this question depends solely on someone's personal preferences. There are definitely advantages to it - mainly for the person receiving the parcel - but there are also disadvantages, just like with everything. Here are a few most significant ones.

COD payment option is a good idea in case the recipient of the package doesn't have enough money to cover the cost of shipping at the moment - they can just do it at the moment of the delivery, when they have sufficient funds. It also is a great option for those who don't feel comfortable with putting their bank details online - online stores and small businesses offering such an option can expand their client pools. For instance, many young people who don't yet have a debit or a credit card might want to purchase your products or service.

Lastly, if you own an e-commerce company that is quite new and doesn't yet have many online reviews or other things that can guarantee its reliability, adding a cash on delivery payment method can help in building trust and making people more willing to buy with you.

When it comes to the disadvantages, the biggest one is probably the increased possibility of delivery refusal, in which case the package will be returned to the sender, who will most likely have to cover the costs.

Does Packlink Offer Cash on Delivery Service?

The answer is yes, but not always. Whether you'll be able to take advantage of the COD courier service depends on the company you decide to ship your package with. If cash on delivery is available with a particular service, it will be stated on the page with the possible shipping options, in the bottom part of the offer.

How Does Packlink's Cash on Delivery Work?

Cash on delivery service is slightly different at Packlink, as you will have to initially cover the cost of the shipping during the ordering process on our website. However, don't worry - the money will be refunded to you once the recipient of your package pays for it. So, how exactly does it work at Packlink?

Well, the first step is choosing a delivery service for which COD payments are available. Then, when filling out the shipping form, you will be asked to provide the amount of cash the courier is supposed to ask the recipient for during the delivery, as well as the IBAN bank account to which you want us to make a payment.

Once the recipient gives the courier the cash, the amount they paid will be transferred to your bank account within 15 days - however, keep in mind that if you forgot to add the bank account number during the filling out process and provided it later, then the payment might be delayed.

Another thing is that the package you want to send with cash on delivery needs to have a Packlink label. If the package isn't properly labelled, then Packlink isn't able to guarantee the collection and the reimbursement. We will, however, refund you a percentage of what you paid.

Cash on Delivery Courier Services

Cash on delivery, or simply COD, is a delivery service in which the recipient is responsible for paying the postage rather than the sender. COD postpones the payment for the delivery until the recipient receives the parcel instead of having to pay for it before the package is shipped.

Packlink offers such a service as well, although not in all cases - and the process differs slightly. At Packlink, the sender is required to pay for the shipping when ordering the service but is reimbursed after the recipient pays the courier.

Is COD a good solution for delivery payments? It depends on the customer. Does it have some benefits and allow for a reliable cash flow? Yes. Does it also have some disadvantages? Of course, just like any other transactions.

Remember that if you don't like the idea of a COD payment option, there are plenty of other courier services that you can choose from - all of them can be compared thanks to Packlink's comparison tool so that you get the best deal. All you have to do is insert the "from" and "to" locations, as well as measurements of the parcel.

And if you want the recipient to pay for postage, there's always the option of them being the one ordering the shipping.

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