Here's how Pay on Delivery (cash on delivery) works

All you need to know about Pay on Delivery and how it affects you as a seller

by Ayesha Siddiqa on 08/06/2017
How cash on delivery works
Pay on delivery (Cash on Delivery or CoD) is one of the most prominent modes of payment in India. Customers love to see the product before paying for it and CoD has made that possible. It has changed the way Indians shop, mainly because they don’t have to pay for the item before it is delivered to them. Additionally, factors like not having access to a digital payment option, lack of trust in retailers, dissatisfaction with the product quality also make CoD a more popular option among Indians.

As an Amazon seller, you have the option of enabling cash on delivery to your customers. What’s more is, while Amazon collects the cash on delivery, the money is sent directly to your bank account. By providing the choice of Pay on Delivery to your customers, you surpass your competitors who may not have the same option.

How it works:

- Customer places an order on the website and requests for a delivery at their postal address.
- A delivery executive picks the product from the merchant/fulfillment centre and delivers it to the customer’s address.
- Customer makes the payment via cash or card to the delivery executive.
- Payment is recieved by the marketplace, which in turn directly makes the payment to the seller's bank account in a timely manner.

How this affects you as a seller?

Pay on Delivery orders are not very different from the pre-paid orders, except for the mode of payment. There is no loss to the seller as the cost of the product and the way you receive your payment from the e-commerce site remains the same.

Amazon's easy ship service provides an option, wherein you need to pack the item and an Amazon logistics executive will pick the product from you and deliver it to the customer. After the delivery is made, the customer makes a cash payment which will then be processed to your account at the specified time, as per regular payment policies. Additionally, if you opt for Fulfilled by Amazon (FBA) service, the warehousing and logistics will be taken care of by Amazon. Learn about all the different ways to deliver orders to the customer here

Pay on Delivery is just another mode of payment and sellers have nothing to worry about with regards to CoD related disbursements. In fact, Pay on Delivery drives more traffic as thousands of customers shop every day because of it. This online traffic will eventually translate into better sale figures, so sellers should use it to their advantage. Register now, to become an online seller with Amazon and reach out to millions of customers
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