Can the Receiver of the Package Be Required to Pay for the Shipping?

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8 months ago5 min read

Even though we live in such a digitalized era, there are still some people that dislike the idea of putting their information online. Therefore, refuse to make purchases online. Is there a way to somehow meet the demands of the customers and the business at the same time?

What is COD?

COD, or better known as “cash on delivery” or “collected on delivery” is a payment method where the buyer of the product pays for the purchased items only when the items are delivered.

Different courier companies have different methods of collecting money. Some accept only cash, some cash and cards and other include paying for the delivery with money orders or cheques (whether it may be personal ones, company’s, bankers or official bank cheques). Money orders (mainly used in the USA) are an alternative to cash and reduce the risk of theft, as you can cancel it anytime and get a replacement. You can get these in supermarkets and convenience stores, banks and credit unions, money transfers etc. Cheques are another type of deposit where the bank issues a certain amount of money on a specific document from one person’s account to the person in whose name the cheque is meant for.

Are there any benefits and risks when paying by COD?

It is not common for all couriers to be accepting this type of reimbursement. There are some benefits as well as risks when paying by COD. That is why some couriers decide to just avoid this approach and stick to the online prepayments.

Risks when paying by COD:

Indirect costRisk of theft
If there is a failed shipment or a bounced check then this could add an indirect cost to the item as the courier would have to bring the item back to the warehouse. The customer might also refuse delivery for a couple of reasons including if the product was found to be cheaper at a local store, is unsatisfied with the delivery time or simply changed their mind.
Whenever carrying cash with us, we know there is a high risk of pickpocketing, and it is the same with couriers. This adds to the need for having higher security while transporting and if failed it could cause high monetary losses to the company.

Benefits when paying by COD:

Not all is that dark and blue behind this method. There are some benefits both for the customers and businesses.

Different alternativesBrand recognition
On one hand, customers like the idea of having different alternatives. Being able to pay on delivery might encourage and stimulate more orders as some people do not have credit cards, thus cannot make online payments.
And how does it affect the businesses on the other hand? Customers feel safer with this type of deposit, as they not have to put everything online. Relatively new businesses aim to get brand recognition and having the trust from the customers would be one of the ways to reach it.

In some countries like India, cash on delivery transactions are boosting internet commerce.

Do you want to know when it is the best time to use this method? Read more in our dedicated article about cash on delivery and how does it work or contact us and we will get back to you as soon as possible!

Are there any couriers that accept COD payment?

It is important to mention that not all couriers accept this type of payment. Here is a list of some shipping companies that do accept it:

  • FedEx accepts several ways of billing starting from cash to business or personal checks.
  • DPD couriers would leave the packages in one of their delivery depot locations. Once you make the payment, you can automatically open the “vault” with using the code.
  • GLS is another courier company that accepts COD and the money they receive would be transferred securely to the sender’s account.
  • SEUR also allows collecting deposits at the destination.
  • DHL charges a small fee when making this payment. Once the package is delivered and the money is collected, they will then be transferred to the specified account of the sender.

Are there any other situations that the customer would be still required to pay when accepting the package?

Other than having to reimburse for the package, there are situations that the receiver is still required to pay something extra. Such situations include:

If there is a returned undeliverable parcel and they are assessed postage for the return trip.

If the parcel has been stuck in customs due to taxation, then the receiver must cover this cost too.

COD with Eurosender

At the moment such payments are not an option when using a shipping logistics platform like Eurosender. The service has to be paid online when booking the service on the website. However, there are several other alternatives to pay when booking with us. The available ones are secure credit cards, PayPay, through bank transfers or payments through credits.

If you are the receiver of the package and you wish to make the payment for it, then you can place the order as a consignee on our platform and pay online, even though the collection will be done with a different person.

Last modified:April 02, 2020

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Monika Kelesovska
From staying on an uninhabited island to living abroad, to finally joining our Eurosender team. She is both funny and creative, so we are thrilled to have her in our Marketing department.
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