What Happens If A Customer Refuses A Cod Order?

If you have chosen to use your Chicago messenger service to deliver packages to your

customers on a COD basis, then you have to acknowledge the fact that you are exposing yourself to a slightly higher level of risk in your shipping. There are laws in place which are designed to protect customers when they order products and wish to pay COD. These allow for a refusal of any package that the customer does not wish to pay for at delivery. Although this doesn't happen much, when you're shipping COD, this is a risk that you have to be prepared to face.

When a customer does decide to refuse an order, you are going to be faced with somewhat of a problem. Number one, you won't have made the sale that you thought that you were going to have made. Next though, you will also be responsible for the price of shipping the goods to the customers, as well as the price of shipping the cargo back to your location since it will be unable to be delivered.

The fear of this additional cost is something that keeps many companies from pursuing COD as a shipping option. This isn't necessarily logical though, and is based on largely unfounded fears. The majority of orders that are shipped COD are definitely not refused. Only a few will be turned away, and the cost that you face because of this might be made up for by the number of customers that you can gain by shipping COD.

Yes, you can in fact gain customers by shipping COD. This doesn't make sense to some people, but it is in fact a matter of increasing the trust that a potential consumer has in your company. People want to buy from companies that they feel they can trust. Trust, begets trust, people that have been in marketing a long time know this. So by extending the trust of a COD shipment to a customer, you in turn make them more likely to trust in your product. You are showing them that you have faith that they will see your product and still want to pay for it, which makes them feel that they have no reason to doubt the way that you represent your products.

There are certainly pros and cons to COD shipping. The reemergence of it as a preferred shipping method seems to suggest that the benefits outweigh the risks.

by: Corey Michaels

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