When buying on-line, we regularly see one thing that claims “COD Available”, “COD Unavailable” or merely “COD.” In easiest phrases, COD means Cash-On-Delivery.
This means, you’ll pay to your on-line purchases to the supply crew or make an internet cost when the stuff lands on your step and earlier than accepting the cargo.
Therefore, let’s comprehend what’s COD
Understanding COD & Its History
Actually, COD orders are nothing new. They’re well-liked all around the world ever since mail deliveries started. The first COD parcels are mentioned to have origins in Germany means again in 1857, when folks there would purchase stuff from neighboring Austria.
In these days, folks may place orders for one thing by sending a letter to the corporate. And the corporate ought to ship the parcel via the postal system. In these days, folks would pay the postman the fee of their purchases.
There was a significant cause for this. A publish workplace served as a trusted medium for money transactions, since its run by the federal government of a rustic. Secondly, Cash on Deliver order would enable corporations and companies to cater to shoppers at distant places.
And thirdly, it helped overcome the problems of foreign money trade. A publish workplace would pay the equal of the customer’s foreign money to the shipper’s account.
Customers additionally benefitted from COD. They didn’t must ship money by mail, which was dangerous and normally, unlawful. Secondly, folks may purchase issues they needed on the worth they have been prepared to pay from a international or distant vendor. And lastly, it gave customers a alternative to purchase what they need.
COD in Modern Times
In our occasions, COD assumes an altogether new that means. ECommerce corporations, well-liked buying web sites and different on-line shops enable this facility for a number of causes. However, this doesn’t imply that COD services to purchase stuff from brick-and-mortar companies don’t exist anymore.
For instance, I exploit COD typically when shopping for stuff on-line. I additionally use COD whereas putting an order on telephone with my neighborhood grocery. And thirdly, I exploit money on supply for these uncommon situations the place I’ve to put mail order for something.
This brings us to the query, what are the advantages of COD? Are there any real advantages in any respect? After all, we pays for the products both earlier than or after they arrive. And secondly, some corporations might cost an additional “convenience fee” for offering the COD services, which may go as excessive as eight to 10 p.c of the entire worth of our buying.
And what occurs if we’re not there to take supply as a result of no person else would pay for the stuff? Obviously, these are questions we’d typically ask ourselves.
However, there’re positively quite a bit of advantages of ordering items on money on supply. Below, I’ll talk about about these briefly.
Benefits of Cash on Delivery
You might have satisfactory money on hand or perhaps a bank card to pay whereas ordering. Then why do on-line or offline shops provide cost on supply technique? As I point out earlier, these shops or corporations want to increase their companies by providing COD services. But on the similar time, there’re quite a bit of advantages for you as effectively.
1. Checking Order Before Payment
As a rule, I at all times make it a degree to interrupt my work and take a couple of minutes off to just accept the order, open the bundle proper earlier than the supply crew and examine its contents.
This is extraordinarily essential. If I’m not glad with the contents or one thing is incorrect with the order, I can refuse to just accept and return instantly.
Checking the order earlier than paying COD has distinct advantages. Your money is unbroken and you should buy the stuff elsewhere. And if the order has been bungled up for any cause, you don’t lose something.
Furthermore, you additionally don’t want to attend for the vendor to refund the money or power you to just accept a alternative reasonably than cancelling the order altogether.
2. Online Payments Security
Usually I by no means order something from doubtful on-line shops or lesser identified ones. However, this isn’t at all times potential. If we’re shopping for one thing distinctive from on-line sellers on Facebook Marketplace, Etsy or Shopify, it’s higher to avail COD services.
I’m not implying there’s something incorrect with these marketplaces or their sellers. However, their on-line cost techniques won’t be as safe as one would need.
In some circumstances, I’ve come throughout on-line marketplaces that settle for funds for orders solely from a selected cost portal or app.
In these circumstances, it’s finest to avail money on supply. You don’t have to obtain one other cellular pockets or app to pay for a single order. Nor do you must use your bank card or debit card on cost techniques that aren’t Verisign verified.
3. Offline Purchases
There’re occasions after I’ve to name my neighborhood grocery retailer whereas driving and place an order. The retailer delivers my order at doorstep on the appointed time. As any motorist would testify, it’s not simple to make an internet cost whereas driving.
And even whereas at dwelling or workplace, there’re positively quite a bit of shops that merely don’t settle for on-line funds. Instead, they need money on supply or COD.
In such situations, the COD system is extraordinarily useful. I can withdraw money from an ATM if vital and pay when the order arrives at my doorstep. Often, the supply crew carries a conveyable Point of Sale (POS) terminal.
This permits us additionally to make use of credit score or debit playing cards whereas paying COD and embody a small tip for the supply crew.
4. Allows Time for Getting Cash
All of us run out of money typically. Yet, there’s a really tempting provide on-line that we simply don’t need to miss. And we want there was a while to rearrange the money and purchase the stuff. These are situations when COD works very effectively to our profit.
We can place the order and truly purchase time to rearrange the money. If that proves cumbersome, it’s potential to easily cancel the order prematurely or not settle for when it arrives at our doorstep.
Such conditions are pretty uncommon. However, they’re not unusual. There will likely be occasions when our sources, particularly money, will come below heavy strain. At such occasions, COD provides us that a lot wanted breather to rearrange for the money or rethink in regards to the order.
In any case, there’re no losers right here. No on-line retailer expenses for cancellations or refusal to just accept an order as a result of we can not pay. At finest, a phrase of apology to the supply crew would suffice.
5. Overcoming Currency Exchange Hurdles
Not each debit card or bank card affords a blanket worldwide entry. This means, the issuing financial institution will cost a payment after we make a transaction in our foreign money to pay a international vendor. Usually, the customer and vendor each lose a bit of money on such purchases.
Your financial institution will cost you the rate at which they promote the international foreign money, which is often larger. And the vendor’s financial institution pays on their international foreign money shopping for rate, which is decrease.
Cash on Delivery or COD helps overcome these losses. You must pay a certain quantity of money in your foreign money regionally to the supply crew. This means, the financial institution doesn’t play any function and also you don’t lose money for foreign money conversions. The vendor receives the complete quantity of money you’ve paid. That’s as a result of it will get credited bodily or electronically by the supply firm to their checking account.
Other Benefits of COD
COD can also be helpful for those who don’t have a bank card or debit card for any cause. People which might be cautious or scared about utilizing their bank card, debit card or web banking services on-line may also use COD and profit from ecommerce.
Furthermore, money on supply can also be a safer various for those who’re permitting youngsters or others to order stuff whilst you’re away. You can preserve solely restricted sum of money to pay for the buying and stop undesirable bills.
These advantages of COD would possibly assist enhance your total on-line buying expertise. COD additionally reduces dangers of on-line thefts that may happen for those who’re very careless whereas transacting on-line. Therefore, I’d counsel you to pay on supply the place potential.
However, earlier than availing money on supply facility, I like to recommend you learn the phrases and situations. As I point out earlier, some on-line shops cost a comfort payment for COD purchases. If there’s a cost, strive buying elsewhere at on-line shops that don’t levy a comfort cost. In an case, COD is a wonderful choice to paying immediately and regretting later.