Payment on receipt , or what is known as Cash on Delivery, is one of the methods of buying and selling online. It has become very popular and a group of stores have achieved large sums and net profits.
Every day, new features are added to the online shopping system, which works effectively on increasing the number of shoppers around the world, which contributes to improving the shopping experience in general and rising profits significantly,
And today we will show you on Fastcoo’s website what is meant by payment on receipt, its advantages and the most prominent disadvantages
What Is Cash on Delivery (COD)
Payment on receipt, Cash on Delivery, in short, means not collecting the amount due for the service or product shipped to the customer’s home except after the customer receives the product or service from the representative of the shipping company, regardless of that company.
Understanding Cash on Delivery (COD)
The Cash on Delivery system is one of the payment methods available in various online stores and online sales sites all over the world, especially Arabic ones.
This is due to the preference of many of the Arab world’s online shoppers for the cash on delivery method. It means that the shopper can shop through any online store and choose the product he desires,
And then make the order and choose the payment method on receipt, which means that the payment process is postponed until the customer receives the product that he ordered online.
Companies can provide the shipping feature through COD, which is a feature that allows customers to postpone payment for their purchases until they receive it,
And it is one of the ways in which the customer guarantees that he will not be exposed to any of the fraud or fraud, especially as it is one of the most common problems when it comes to shopping online.
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Cash on Delivery (COD) Pros
Cash on Delivery (COD) is often useful, not only to the buyer, but to the seller as well, as it:
- Enabling the seller to collect his money faster, because in many cases customers are unable to pay online or it takes a long period for the payment to reach the seller’s account.
- Obtaining more reliable cash flow which in turn facilitates budgeting.
- Increasing sales and customers, despite the great development and technological era that we are witnessing, but there is still a large category of individuals refuse to pay money electronically, and prefer to pay when receiving goods.
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Cash on Delivery (COD) Cons
Despite the great advantages offered by the Cash on Delivery (COD) system, there are a number of disadvantages that result from using the Cash on Delivery (COD) system,
The most important of which is the high risk of the customer refusing to receive the order, because customers through this method do not pay for Goods in advance, they can refuse delivery and thus not pay.
What is COD Finance?
COD Finance refers to the transaction in which payment is made on delivery rather than payment at the time of ordering, for a business owner or entrepreneur, requesting to pay cash on delivery helps protect your cash flow from slow-paying accounts.
COD Finance is not intended to be paid in cash only, but can also be paid with your credit card or through a bank check.
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Conditions to Reaching COD
In the beginning, you must know that the activation of Cash on Delivery will depend on the agreement with the contracted shipping company to provide the service of collecting money, and it is considered one of the most important services provided by most shipping companies.
Through the money collection service, the representative of the shipping company collects the amounts due from the customer in exchange for the service or product that he obtained, and supplies those amounts again to the shipping company until it transfers them to the business owner.
In this regard, we must point out that the representative of the shipping company collects those funds or amounts due from customers in many different ways, and perhaps the most important of these methods is to collect money in cash or through payment cards, whether prepaid cards or credit cards, or by Bank checks.
After the shipping company collects the money or sums due from customers or shoppers, the company sends those funds to merchants and online store owners and online sales sites.
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Features of the COD service that Fastcoo offers to its customers
Fastcoo relies on the latest technologies that provide integrated services to its customers, and through the cash on delivery service, Fastcoo tracks the process of collecting cash from the drivers who delivered the goods to the customer, then deposited them in the company, and finally the amount is transferred to the final customer, all using the latest technologies and means tracking.