Cash on Delivery is a built-in manual payment method that allows buyers to pay for their orders at the time of delivery. Though the name implies cash, buyers can pay for their orders with their preferred payment methods, such as card, check, or bank transfer.

Advantages of Cash on Delivery

• No transaction fees: It is free from any transaction charges.

• Building trust for brands: Enhances customer trust in the brand.

• Attracting new customers: Provides an opportunity to reach more customers.

• Reducing cart abandonment: Increases the likelihood of customers completing their purchases.

• Enhancing user experience: Offers a more user-friendly payment process.

• Ideal for businesses with limited digital payments: Suitable for businesses that are limited to digital payment methods.

• Reducing risks associated with third-party payment providers: Provides a reliable payment process.

• Preferred option for local pickup shipping: The preferred payment method for local delivery scenarios.

Disadvantages of Cash on Delivery

• Possibility of stockouts and waitlists: May lead to stock issues.

• Risk for retailers: Can lead to order cancellations and other issues.

• Increased return rates: Higher likelihood of customers returning products.

How Cash on Delivery Works

When enabled, Cash on Delivery is displayed as one of the payment methods on the checkout page of an online store.

• The buyer places an order by selecting Cash on Delivery at checkout.

• The seller accepts the order on the admin panel, prepares, and ships the item to the customer’s address.

• At the time of delivery, the carrier receives cash, a check, or a money order from the buyer and then passes the payment back to the seller.

How to Enable Cash on Delivery for Your Online Store

As the easiest eCommerce platform, Nevuto provides Cash on Delivery as a built-in payment method. To use Cash on Delivery in your online store, simply add the COD (Cash on Delivery) terms. Learn how to enable Cash on Delivery on your Nevuto store.