Cash on Delivery (CoD) – Breaking down the most convenient payment method in the market

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In a survey from DI Marketing, 85 percent of e-Commerce buyers in Vietnam reported that their primary payment method for digital was cash on delivery (CoD). Only 15 percent reported payment mostly through digital methods. And Vietnam isn’t alone. India, for instance, has well over 300 million active internet users and a fast-growing e-Commerce market. In 2015, 80 percent of e-Commerce transactions were paid via CoD as access to credit cards across its population remained slim.

Those numbers speak volume about the familiarity of the term “CoD” among e-commerce business entrepreneurs and Vietnamese online sellers alike in recent years. Stemming from the justifiable need to eliminate any potential risks of fraud or default, buyers might require the ability to check on products before finalizing a purchase.

Cash on Delivery (CoD) - Breaking down the most convenient payment method in the market 1

(Source: Innov8tiv)

Substantial benefits are given to buyers’ side when this type of transaction is applied. Instead of paying upfront, recipients get to examine on-site, then pay for it once they deem the package fitting and satisfactory. The purchaser then remits payment to the shipping company, who relays the payment back to the seller. Conversely, purchasers could also deny payment if the package is not up to their requirements.

The process of examining the good largely depends on what is stipulated in the shipping contract. Many sellers are fine with their products being unpacked completely to check on, while others might only allow exterior contemplating and prohibit package & label violation of any kind.



For consumers, especially those without credit cards, CoD purchases offer a convenient way to order goods online. These transactions help minimize risk on buyers’ part since they don’t have to pay until they have received the product in satisfactory conditions. CoD transactions also protect buyers against scams by online fraud artists posing as legitimate businesses or those looking for credit card information for illegal uses, because with this type of purchase, both sides know that the merchandise must actually show up before money being paid out.

On the merchant’s side, offering a CoD payment option may enhance buyer confidence in a new company that does not yet have a strong, instantly recognizable brand name, which may very well lead to more new customers and increased sales. And since CoD transactions do not involve a credit card as mentioned above, merchants subsequently save money on credit card transaction fees.

Cash on Delivery (CoD) - Breaking down the most convenient payment method in the market 2

(Source: Shiprocket)

However, in addition to enjoying the benefits of CoD transactions, merchants who offer this payment option must be prepared to assume certain risks.

  • It is worth noting that CoD payment options may lead to unwise purchases due to the ease of online ordering and the ability to defer payment until delivery.
  • Plus, since the consumer, for various reasons, may refuse delivery when the goods arrive, the seller could wind up carrying the costs of shipping for returned items (generally account for 50% of the initial shipping fee).
  • Delays in shipping or difficulties in coordinating delivery times with buyers are other common problems that could turn supposedly appropriate payments into frustrating waits.



Here at Boxme, we have been offering CoD transaction service since 2015, much to customers’ appreciation. A step-by-step representation of the service is presented below:

  • Purchase orders are made between sellers and buyers (without advanced payment)
  • Products are picked up per customers’ convenience
  • Boxme handles the shipment through a number of delivery partners. After its arrival, two possibilities occur:
    • Boxme receives the payment, then relays the payment back to the seller
    • Boxme reverts the product back to the seller without payment (if an agreement on the shipment is not reached)


  • Money remittance from banks or gateways that connect with Boxme’s system are provided DAILY.
  • Returning fee, should it be applied, accounts for 50% of the initial shipping fee

Cash on Delivery (CoD) - Breaking down the most convenient payment method in the market 3



Do you know adding Cash on Delivery option can help you skyrocket your sales by 5-10 times? Your customers will feel much more confident in your products if you let them pay after delivery! The best part is that Boxme handle all of that while you can get daily money remittance from banks or gateway that connect with our system!

Thousands of happy merchants are using Boxme and its convenient CoD service to sell without limitations. Care to join them? SIGN UP NOW!


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