Online shopping has been growing at an exponential rate. People find it much more convenient to order products online from the comfort of their homes. Without needing to visit the store, the product is delivered right to their doorstep.

While ordering the products, the buyers get a couple of payment options. While they can make digital payments through net banking/ debit card/ credit card/ Google Pay etc., The online stores also offer their consumers to make cash payments and partial cash payments at the time of product delivery. This offer the buyers an added advantage, as all of them are not comfortable making online payments.

Here, we will discuss everything about COD or ‘cash on delivery’ and partial COD and their significance in today’s times.

Why COD is Important?

Under this type of money transaction, the recipient is allowed to pay for the good at the time of receiving the delivery rather than paying in advance. The terms and conditions of this form of payment may vary according to the provider. Some payment provisions include checks and electronic payment as well along with cash at the time of product delivery.

There is a Partial COD option also available with the customers, where a small part of the purchase price needs to be paid online on an immediate basis, while the rest of the payment can be comfortably done at the time of delivery.

COD and partial COD shipping offer several advantages to customers. It allows them to save time and make the full payment in cash. It sometimes also means higher efficiency, low risk of fraud between the buyer and seller, and more confidence to the seller that they can make the payment only when they receive the product. Let us discuss this in detail.

Customer gets time

Compared to the immediate digital payment option, in the cash-on-delivery model, the customer gets time to arrange the money till the time of delivery. This is highly beneficial for the customer but the customer needs to plan appropriately for the payment, or else the purchase will have to return.

Enhanced customer confidence

One of the main reasons why people find cash on delivery a more comfortable choice is that a COD payment option offers more confidence to the consumer. Especially when the customer orders a product from a new company or brand when the trust and brand recognition are low, COD is a wise choice. Though many customers like to pick the option of COD even with the established companies considering the risks of COD shipping. COD eliminates the post-purchase order anxiety as there is no risk of losing money.

Low chances of fraud

COD also has an advantage over net banking as it avoids the risks of fraud, stopped payments, electronic card disputes, and more. With cash on delivery payment mode, you need not disclose confidential information about your financial statements such as bank account number, credit card or debit card number, CVV, and more.

Caters to all customers

Many customers from suburban or rural areas do not have credit-buying options. Some may not be comfortable using a debit card. Some customers do not have access to UPI payment gateways. COD allows these customers who are more familiar with cash buying, to order products and make easy cash payments after receiving the goods.

Wrapping up

As per Nielsen’s Global Connected Commerce Survey, which got published on Business Insider, more than 83% of Indian consumers prefer COD for online buying. 72% of people from the main cities and 90% of people from smaller towns pick COD as a payment option rather than choosing any advance payment.

COD or cash on delivery transactions is leading to higher internet sales. The COD payment option appeals more to consumers. This option allows buyers who do not have a credit card, or debit card, access to UPI platforms, and other such means for goods payment. Angad creations offer partial cash delivery options to its buyers. You can select the apparel, make 15% payment in advance to confirm the order, and remaining payment as COD once you get the product.