SpeedPack
Wroc do bloga

Cash on delivery in international shipping - what you need to know?

2024-01-24
The decision to send parcels abroad involves a key choice - how will the recipient pay? Will you choose upfront payment, or perhaps cash on delivery? Find out what you need to knowże zdecydujesz się na płatność za pobraniem? Płatność przy odbiorze to termin, który brzmi znajomo, ale czy naprawdę wiesz, co kryje się za tym procesem? Jak wysłać przesyłkę za granicę z gwarantowaną płatnością przy odbiorze? Czy takie rozwiązanie jest bezpieczne? Sprawdźmy!

Cash on delivery: what is it and how does it work?

Zacznijmy od podstaw. Cash on delivery (payment upon receipt) is a method where payment for goods is made not at the time of ordering, but at the moment of delivery to the recipient. This is an ideal solution for people who prefer to check the product before paying, or for those who do not trust online payments. The method is safe, reliable and simple. How does it work?
  1. Order: the customer places an order and selects the cash on delivery payment option.
  2. Shipment: the seller ships the goods but does not yet receive payment.
  3. Dostawa: the courier company delivers the shipment to the recipient.
  4. Payment: the recipient pays for the goods directly to the courier - by cash or card, depending on available options.
Zajrzyj do naszej oferty. There you will find dedicated international delivery options (we also deliver online purchases from Polish sellers abroad). If you want to send a parcel abroad with a cash on delivery option, order a courier.

Main advantages of cash on delivery

In today's world, where everything seems to be moving to the digital realm, cash on delivery stands its ground. It remains attractive for many consumers and sellers. Here is why:
  • it is a simple and safe payment method;
  • it allows purchases even without sufficient funds at the time of ordering;
  • it gives certainty that the ordered goods will be delivered;
  • it eliminates the need to recover funds when the product turns out to be damaged or does not match the specification upon delivery;
  • it encourages purchases also from customers who avoid online payments.

What does cash on delivery mean for the customer?

The buyer gains the certainty that they will only pay for goods they have actually received and that meet their expectations. Cash on delivery is a simple solution. Customers do not have to worry about online processes such as entering credit card details or making a bank transfer. It allows shopping even if the customer does not have sufficient funds in their account at the given moment. They do not have to miss out on opportunities offered by promotions or limited stock. Additionally, the customer is certain that the goods they ordered will reach them. They avoid fraudsters who collect money for orders they never intend to fulfil. Products also fail to reach recipients for reasons other than bad intentions. A shipment may get lost. The sender may make a mistake entering shipping details. There are many possibilities. By choosing cash on delivery, the customer does not have to go through the tedious and often lengthy process of recovering their money.

What does cash on delivery mean for the seller?

One of the biggest advantages of cash on delivery is building trust. Customers who do not fully trust online payments or fear fraud can feel safer knowing they will only pay after receiving and inspecting the product. This strengthens their trust in the seller and often encourages them to make purchases. Thanks to the cash on delivery option, sellers can reach a wider group of customers, including those who avoid online payments for various reasons. Some customers prefer this form of transaction, and if a shop does not offer it, they shop elsewhere. Payment upon delivery also minimises the risk of difficulties associated with online transactions. These include, for example, chargeback abuse by customers or unauthorised transactions.

Limitations you need to know about

Cash on delivery, although it has many advantages, also comes with certain limitations:
  • rezygnacja z produktu w momencie dostawy;
  • higher shipping costs;
  • longer transaction processing time.
One of the main challenges is the risk that the customer will refuse to pay at the time of delivery. They may decide they are dissatisfied with the product and change their mind. They may also have financial problems and not have sufficient funds to pay for a product that has already been delivered. Cash on delivery often involves higher operational costs. Courier companies may charge additional fees for handling cash or card transactions upon delivery. Transaction processing time is also extended. From the moment of ordering to the final payment and closing the transaction, more time may pass compared to online payments. When paying cash on delivery, you need to have the exact amount. The courier may have difficulty giving change.

Cash on delivery vs other available methods: what to choose for your international shipment?

Payment directly upon delivery is not the only option. You can choose between several available delivery and payment options. Let us take a closer look.
  1. Cash on delivery
Zalety: Security of payment upon receipt, no need to share credit card details. Ograniczenia: higher costs, risk of payment refusal by the recipient.
  1. Tradycyjne przelewy bankowe
Zalety: safe for large transactions, fast, accepted worldwide. Ograniczenia: longer shipment processing time, currency conversion fees.
  1. Credit card payments
Zalety: a fast and convenient payment method, often with additional security features. Ograniczenia: the need to provide credit card details, possible fees for international transactions.
  1. Electronic payments (e.g. PayPal, PayU)
Zalety: fast, convenient, with additional security features, ideal for online stores. Ograniczenia: may require having an account in the given system, possible transaction fees.

Podsumowanie

We hope we have managed to shed some light on what cash on delivery means in international shipping and where its popularity comes from. It is a simple solution. Although it comes with certain challenges, for many sellers and consumers it remains the safest and most reliable payment method.