Cash on delivery (COD) makes sense when local demand is strong, a suitable carrier can collect and remit payment, and the expected conversion gain exceeds the added cost of refusals, failed delivery, fraud controls and reconciliation. It should be tested by market and order profile, not enabled everywhere by default.
Under COD, the customer places an order without completing the full online payment and pays when the parcel is delivered or collected. The exact process can involve cash, card or another local collection method depending on the market and delivery partner.
COD remains relevant in parts of global ecommerce. The World Bank’s Global Findex 2025 notes that cash on delivery was preferred by 79% of online shoppers in the Philippines, 77% in Indonesia and 41% in Thailand. Those figures illustrate why a payment strategy should be local; they do not mean COD is the right choice for every retailer or parcel.
Benefits and risks of cash on delivery
| Potential benefit | Operational risk | Control to consider |
|---|---|---|
| Reaches customers who do not want to pay online. | Order refusal at the door. | Order confirmation, address checks and limits for new customers. |
| Can reduce payment anxiety in a new market. | Cash collection and remittance delay. | Clear settlement terms and reconciliation by order ID. |
| May lift checkout conversion. | Higher delivery and reverse-logistics cost. | Measure contribution margin after failed and returned orders. |
| Supports local payment preference. | Fraud or repeated non-acceptance. | Customer history, verification and value thresholds. |
A six-step COD operating flow
- The customer selects COD and sees any fee and eligibility conditions before confirming.
- The retailer validates the order, inventory, address and customer contact details.
- The delivery partner receives the order value and collection instruction.
- Tracking and pre-delivery communication tell the customer when and how to pay.
- The carrier records collection or refusal and remits funds under the agreed schedule.
- The retailer reconciles payment, delivery, refusal and return records by order.
How to decide whether to offer COD
Build a market-level business case. Compare payment-method demand, carrier coverage, collection method, maximum order value, settlement timing, refusal rate, reverse cost and customer-service workload. A small pilot with clear stop conditions is safer than a global launch.
Important: this article explains COD as an ecommerce payment model. It does not state that Asendia offers COD in every market. Service availability must be confirmed for the specific origin, destination and operating setup.
Delivery and returns still determine the outcome
COD does not replace the need for a strong delivery promise. Customers still need realistic timing, useful status messages and clear instructions. Retailers can compare international parcel delivery, tracking requirements and global returns as part of the decision, then confirm whether payment collection is available through the relevant delivery setup.
Frequently asked questions
What is cash on delivery in ecommerce?
Cash on delivery is a payment method in which the customer pays when an order is delivered or collected instead of completing the full payment online at checkout.
Does cash on delivery increase ecommerce conversion?
It can in markets where customers prefer payment at receipt, but the effect should be measured against refusal, failed-delivery, collection and reconciliation costs.
What are the main risks of COD?
The main risks include order refusal, failed delivery, fraud, delayed settlement, cash handling, reconciliation work and higher reverse-logistics costs.
Should COD be offered on every order?
Usually not. Retailers can apply market, customer, product or order-value eligibility rules based on risk and carrier capability.
Does Asendia offer cash on delivery?
Availability depends on the specific market, route and delivery setup. Retailers should confirm the required service directly rather than assume COD is available everywhere.
Planning international ecommerce growth? Discuss your markets, parcel profile and customer promise with Asendia.
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