subject: Having Deliveries Made Cod [print this page] There aren't many companies that ship COD anymore, and as such, when considering your options on how to bill your customers you might not even stop to consider this shipping option which used to be so popular in the past. Typically, when a customer places an order with your company you will require immediate payment, such as cash in a store, a check by mail, a credit card or PayPal over the internet. COD stands for collect on delivery, and this is a method of shipping whereby the customer doesn't actually pay until the item is brought to them. There are risks associated with this type of shipping and billing model to be sure, but if you can find a fulfillment company that will ship out your orders and take this kind of payment there may also be some potential advantages for you to consider.
When a courier driver for your fulfillment company takes your product out to the customer, they will then be required to collect the total billed amount that you were going to charge the customer for the product, including any shipping costs most likely. They will typically collect this in the form of a certified check or money order, cash is not typically accepted, although some will also now have portable units to bill a credit card electronically if that is the customers preferred method of payment.
The benefit of shipping something COD to a customer is the trust that it shows that you are extending to the customer, as well as trying to invite them to have trust in you. You are showing that you have enough faith in your product to put it in their hands and receive payment, and that you are a company of your word and that you are going to ship what has been paid for, or you won't receive payment. You are also extending the trust to them that you believe that they are good on their word that they will pay when the product is received.
The problem comes because any customer is legally allowed to refuse to accept any product which is shipped to them COD. Otherwise, anyone could ship anything to anyone and require payment for something that was never ordered. The risk here is that if you ship something and it is refused you will still have to pay for the cost of shipping that product to the customer and back to your warehouse.
