Technology

What is Ship COD? Pros and Cons of Ship COD? How much does Ship COD cost?

What is Ship COD? How does the ship COD method work? Ship COD is a form of delivery where the buyer receives the goods first and then makes the payment. Let's explore the advantages, disadvantages of this method and the process of buying and delivering COD in the following article.

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26 December, 2023

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Ship COD is a familiar term for frequent online shoppers and sellers. So what is ship COD? How much does it cost to ship using this method? What are the advantages and disadvantages? Let’s find out in the following article!

Understanding what ship COD is

Ship COD is an abbreviation for the phrase Cash On Delivery, which means paying when receiving the goods. In other words, ship COD is a delivery method where the buyer receives the product first and then makes the payment to the shipper to complete the order.

When you decide to purchase any item from a seller, they will use a shipping service to deliver it to you. When delivering the goods, the shipper will be responsible for collecting the amount requested by the seller when the buyer receives the goods. Then the money will be sent back to the seller by the shipping company.

This shipping method has many advantages for customers as they can receive the goods in hand, inspect them, and even try them out before deciding whether to make the payment. In case they are not satisfied, they can refuse to receive the goods and there is no need to make the payment. The product will be returned to the seller.

However, ship COD also has risks for new sellers as they may have to bear the costs of two-way shipping if the customer refuses to receive the goods. For customers who are not fully trust the product, ship COD is still a popular delivery method.

Evaluating the advantages and disadvantages of ship COD

After understanding what ship COD is, let’s evaluate the advantages and disadvantages of this delivery method for both sellers and buyers.

Advantages

With the increasing trend of online shopping on e-commerce platforms, ship COD is a widely used delivery method. The advantages of ship COD that you can enjoy are:

For buyers

Paying when receiving the goods helps buyers feel more secure, avoiding fraud or losing money in case of prepayment without receiving the goods or receiving low-quality goods.
Fast delivery time, being able to open the product to check if it matches the advertisement, and if not satisfied, the buyer can refuse to receive the goods.
Simple purchasing process, buyers only need to provide information such as the recipient’s name, address, and phone number. No need to go through multiple steps like prepayment transfer,…
Avoiding the risk of exposing bank account information when making advance payments to the seller.

For sellers

The biggest advantage of ship COD is building trust with customers, especially new customers.
Reducing complex refund procedures, satisfying buyers and increasing the success rate of completed orders.
Helping sellers save costs by not having to register and open online payment gateways.

Disadvantages

Despite having many advantages as mentioned above, ship COD also has some disadvantages that you need to be aware of:

For buyers

Ship COD helps ensure safety and avoid fraud, but besides the shipping cost, you will need to pay an additional fee for the COD service from the shipping company. Therefore, the COD shipping fee is usually higher than other prepayment methods.

For sellers

The biggest disadvantage of ship COD is that the seller’s payment for the goods will often be withheld by the shipping company for a specified period of time. This will cause difficulties for the seller in terms of cash flow.

In addition, for customers who have checked the product but refused to receive it or want to exchange it, the seller will have to bear the full cost of shipping both ways, which can be quite expensive.

Step-by-step guide to buying and shipping COD

In addition to the information about what ship COD is, it is also important to learn about the steps involved in buying and shipping COD to make it more convenient for selling and shopping for products.

Guide to buying products with COD

When you shop online or place an order on e-commerce platforms with the COD method, you will go through the following process:

Step 1: You will search and select the products you want to buy.
Step 2: Choose the COD method on the product payment page.
Step 3: Complete the ordering process on the e-commerce platform.
Step 4: The seller will confirm the order and hand it over to the shipping company.
Step 5: Receive the goods, check them, and pay the exact amount of the order to the shipping staff.
Step 6: Confirm the successful receipt of the goods on the e-commerce platform.

Guide to shipping COD

For sellers, the process of shipping COD will follow these steps:

Step 1: Receive the order

The first step in the shipping COD process is to receive the order from the buyer even though no payment has been made yet. The seller will finalize the order, confirm the order, and proceed with packaging the product.

Step 2: Hand over the shipment to the shipping company

After confirming the order on the e-commerce platform, the seller needs to choose the shipping company to pick up the goods or take them to the post office for COD shipment.

In case the buyer does not place the order through an e-commerce platform, the seller will need to create a COD shipment form and send the goods through a reliable shipping company.

Step 3: Delivery and payment collection

The shipping company will sort the goods and deliver them to the buyer’s hands, collecting the payment. In case the customer refuses to receive the order, the shipper will return the goods to the seller.

The usual delivery time is within a day or ranging from 2-4 days, and it may take longer depending on the distance between the recipient and the sender.

Step 4: Payment to the seller

When the order is successfully delivered to the buyer and the COD payment is received in full, the shipping company will transfer the money to the seller’s bank account according to the specified time.

If there are orders returned, the seller will need to bear the cost of both-way shipping.

Some tips to know about shipping COD

Many sellers often encounter difficulties with the ship COD method, resulting in lost or returned goods and cost losses. Let’s explore some tips to know about shipping COD:

Prepare the products adequately

An essential tip in shipping COD is to prepare the best products and services for the buyers. For example, providing customer care through text messages, phone calls, and consultations to help them choose the right products, offering promotional programs, discounts,…

In addition, when handing over the shipment to the shipping company, you should also pay attention to monitoring the shipping process and the delivery status. Pay attention to the feedback from the shipping company to handle the order promptly.

Check the shipping information

When shipping COD, you need to carefully check the shipping address to ensure that the order will be delivered to the customer as quickly as possible. Neglecting to do so may result in incorrect address information and the order being returned.

In addition, there are many cases where the buyer and the recipient are different people, so there may be discrepancies in information. Therefore, it is important to clearly identify who the recipient is to ensure accurate delivery.

Handle unsuccessful COD orders

After understanding what ship COD is, it is also important to have the experience and knowledge to handle unsuccessful COD orders. For orders that have not been successfully delivered, you need to find out the clear reasons, contact the recipient directly to discuss and find the best solution for both parties.

At the same time, to avoid risks such as lost goods, undelivered goods, etc., sellers should research and choose the most reliable shipping service.

Note the quality of service

One of the essential factors for customers to decide to make a purchase and maintain a loyal customer base is the quality of service. Therefore, always maintain a enthusiastic, open, and attentive attitude. This will also help enhance the brand’s reputation in the eyes of customers.

Frequently Asked Questions about ship COD

In addition to the information about what ship COD is, during the shipping process, both sellers and buyers may have some questions, such as:

How much does the COD shipping fee cost?

Normally, the COD shipping fee is determined by the shipping company and ranges from VND 20,000 – 35,000 per order. However, for orders with high COD amounts, the fee will be higher.

How does the seller receive the COD payment?

The shipping companies will transfer the COD payment by bank transfer when delivering the goods. The COD transfer fee is usually free, but some banks may charge a fee for the money transfer, which the seller will have to bear.

Conclusion

So, the article has answered the question “what is ship COD” and provided a summary of the relevant information about the popular COD shipping method nowadays. Hopefully, through the above content, you have gained an understanding of the characteristics and process of sending COD shipments.