Shipment Refusal By Customers

The usefulness of shipping via the COD model is something that has been under debate for many years now

. While some contend that shipping COD extends trust to the customer, enticing them to buy more often, others contend that the risk is great. Many LTL carriers feel that consumers have abused the COD shipping option over the years, which is partly why it is so difficult to find a courier that offers this option anymore.

It is always at least some kind of a possibility that your shipment could be refused. Any customer that has a COD shipment brought to their door legally has the right to refuse to take possession of that shipment. However, this isn't something that happens on a regular basis. Remember, that usually when someone orders something, they do so because they want it. There usually aren't enough mitigating circumstances in the small amount of time between when they placed their order and when it actually ships to make them change their mind about wanting the item at all.

They do have that right however, and are not even required to give a reason if they should choose to refuse it. As such, you need to be prepared that this may happen from time to time. When it does, the cost of the shipping is going to be amplified. You're going to have to pay to have the goods returned to you. On top of that shipping cost, you may also have to pay a penalty fee, as this is going to be out of the courier's planned route to have to make that return.

This is one reason that having an account with the shipping company is almost always required before they will agree to transport anything for you on a COD basis. Otherwise, they could have to return the shipment to you, but would not have already received payment from you for that part of the shipping. This represents a financial risk to the courier company that most of them would rather avoid, which is why this option is usually only going to be extended to account holders.

Even then, not all courier companies will allow you to ship COD. If you decide that making this option available to your customers is important to you, you will have to take some time and shop around for a delivery company that will allow you to do so.

by: Paul McDuffy

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