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Cash on delivery is a popular payment method in online shopping. More and more people are opting to make their purchases online rather than going to physical stores. This trend has led to the offering of various payment methods, including the "cash on delivery" option.
How does cash on delivery shipping work?
Cash on delivery shipping is simple and straightforward. When placing an order with cash on delivery, you select this payment method at the online store's checkout. The sender specifies the amount that the recipient must pay upon receiving the goods. The goods are then shipped to the recipient.
Upon receiving the shipment, the recipient pays the specified amount directly to the delivery person. Payment is made directly to the delivery person, either in cash or with a debit card.
Pros and Cons
One of the biggest advantages is that the goods are shipped immediately, as the seller does not have to wait for payment to be received. This saves time and allows the customer to receive the goods faster.
Another advantage is security. Since payment occurs upon receipt of the goods, the customer can inspect the shipment and ensure it is in good condition. This is especially important for sensitive documents or valuable items.
In addition, this method is a good option for those who do not have a credit card or online payment options such as PayPal. Payment can be conveniently made in cash or with a debit card.
Although cash on delivery shipping offers many advantages, there are also some disadvantages to consider.
One of them is the additional fee charged for cash on delivery shipping. This fee is added to the price of the goods and must be paid by the recipient. The exact amount of the fee depends on the shipping service provider but is usually at least five euros for domestic orders. Additional surcharges may apply for orders from abroad.
Furthermore, it is necessary for the recipient to be present during delivery to pay for the goods. Delivery to the mailbox or to neighbors is usually not possible. This can be inconvenient if the recipient is not at home and needs to pick up the package or arrange for a redelivery attempt.
Alternatives to Cash on Delivery Shipping
Although cash on delivery shipping is a popular payment method, there are other options that can be considered.
An alternative is payment by invoice. With this method, you receive the goods first and then pay within a specified timeframe. This allows you to inspect the goods before making the payment and ensure they meet your expectations.
Another option is payment by credit card or PayPal. These payment methods enable quick and secure payment and provide additional protection for the customer.
According to a study published by the EHI Research and Education Institute in July of this year, nearly 30 percent of customers made their online purchases through PayPal last year. Thus, the US payment service has surpassed invoice payment (23.8 percent) as the preferred payment method of Germans. Direct debit/bank debit ranks third with 20.9 percent, followed by credit cards with about 12 percent.
Security in Cash on Delivery Shipping
Cash on delivery shipping provides a certain level of security since payment is made upon receipt of the goods. This gives the customer the opportunity to inspect the shipment and ensure it meets expectations.
However, caution is advised as there can be cases of fraud. It is important to verify the order before payment to ensure that no unwanted or unknown shipments are paid for.