What Is Cash on Delivery (COD)?

Cash on delivery (COD) is a payment method where the customer places an order online but pays only when it is delivered or collected — traditionally in cash, though "pay on delivery" now often includes UPI or card at the door.

How cash on delivery works

The customer browses, adds items to their cart, and chooses COD at checkout. The order is placed without upfront payment, and the shop collects payment when handing over the goods.

Why COD matters for online shops

COD is hugely popular in India and other markets where buyers are cautious about paying online before they have seen a product. For a small shop, offering COD:

• Builds trust with first-time buyers who are not ready to prepay a brand they do not know yet
• Reduces checkout drop-off, improving your conversion rate
• Captures sales you would otherwise lose to "I'll buy it when I can pay cash"

The trade-offs

COD is not free of risk. Because there is no upfront payment, there is a higher chance of refused or returned orders, and you carry the cost of delivery either way. Many shops manage this by offering COD for local delivery and pickup while keeping prepaid options like UPI and cards (processed via a payment gateway) for shipping.

How to offer COD

A good no-code store builder makes COD a checkout option you toggle on, with order tracking so you can mark each one paid on delivery. See cash on delivery on Angadio.