Why Cash on Delivery is better?
It provides consumers the convenience to pay when the correct order is received. Initially, CoD was started to encourage online shopping and gain the trust of consumers in E-commerce.However, in some cases, COD has an advantage over credit since the seller receives the full payment at delivery. COD can also help merchants avoid some risks of buyer identity fraud, stopped payments, or electronic card disputes.Minimized fraud risks: While online payment methods are generally secure, there is always a risk of fraud. COD eliminates this risk as customers make the payment only after verifying the product's authenticity and quality.

What is the main benefit of using Cash on Delivery COD as a payment option for e commerce transactions in the PhilippinesSecurity and trust: COD provides an added layer of security for buyers as they do not have to share their financial information online. This reduces the risk of credit card fraud or identity theft, giving customers peace of mind while making online purchases.

What are the advantages of cash sales

Cash means immediate payment and value, so the extra step of waiting for transactions to process is removed entirely from the equation. Transaction fees and third parties are also eliminated. You will have cash in hand immediately so no middle men or additional processing is required.Loss of Revenue to the Sellers

It may bring loss to the sellers in case a buyer returns a delivered item without paying. The customer might refuse the product or might be unavailable Which results in high revenue loss for the seller and increases harassment of the buyer.

What is the problem of cash on delivery

Risks for Sellers

Frequent returns: Buyers change their minds, and with each COD order — particularly those with a long lead-time — you run the risk of a purchaser losing interest before the transaction is finalized. And every canceled order means an additional shipping cost for your business.

Cash payments pose risks such as theft and loss, as physical currency can be easily stolen or misplaced. Additionally, there's a higher likelihood of human error in counting and handling cash, leading to discrepancies in financial records.

What are the disadvantages of cash payment method

The disadvantages of cash:

  • Hygiene concerns. Coins and banknotes exchange hands often.
  • Risk of loss. Cash can be lost or stolen fairly easily.
  • Less convenience.
  • More complicated currency exchanges.
  • Undeclared money and counterfeiting.

It makes customers feel more secure when shopping in your online store. From there, it can be a guarantee that they will buy again. Plus, COD payments are secure and easy to process – making them an ideal choice for businesses.Advantages of Cash on Delivery (COD)

You have already made an online payment, and your hard-earned money is now stuck with the e-Commerce Business owner. Cash on Delivery (COD) payments eliminate all such risks- making it the most secure method especially for customers.

Cash sales involve no credit terms, making them quicker and easier than other types of transactions as there is no need to wait for payment from customers or clients. The buyer pays the full amount upfront and receives their goods or services immediately.

What are the advantages and disadvantages of cash paymentsThe advantages of cash payments include simplicity and immediate availability, while disadvantages include the risk of theft and lack of traceability. Advantages of cash payments include anonymity and immediate availability. Disadvantages include risk of theft and lack of digital record keeping.

What are 2 disadvantages of paying with cashThe disadvantages of cash:

  • Hygiene concerns. Coins and banknotes exchange hands often.
  • Risk of loss. Cash can be lost or stolen fairly easily.
  • Less convenience.
  • More complicated currency exchanges.
  • Undeclared money and counterfeiting.

What are the disadvantages of payment on delivery

The disadvantages of the Cash on Delivery (COD) payment method encompass higher operational costs, cash handling vulnerabilities, increased potential for returns and cancellations, delayed payments impacting cash flow, and a restricted customer base due to excluding non-cash payers.

Key Points About: The Pros and Cons Of Cash Vs. Credit Cards. Paying with paper money can encourage mindful spending and budgeting habits, but cash lacks the convenience of credit cards, like making purchases online. Credit cards have greater security than cash and may give cash back rewards.One of the primary disadvantages of cash on delivery is that it makes an eCommerce business vulnerable to losses. This is because, when a shopper places an order via COD, they have the option to cancel the order or reject the shipment at the time of delivery.Order cancellations and returns: COD orders are more likely to be cancelled or returned than prepaid orders. Customers may place orders without a distinct intent to purchase, causing businesses to waste time and resources. Payment delays: With COD, businesses do not receive payment immediately.