Cash on Delivery
Cash on delivery or Collect on delivery is a mode of purchase through which the buyer can collect and pay for a product at his own doorstep. If the payment is not done the product is sent back to the seller. This type of payment is usually done through a shipping company and it helps in minimizing the fraud or risks regarding selling of a product. This mode of selling is highly prevalent in India among the online shoppers. Online goods sellers like flipkart, snapdeal, etc., have this provision to ship their products.
Advantages of COD
- User may pay when he is satisfied by the products condition. That is the user can actually check for the quality of his product before paying for it.
- No scams or online frauds are possible in this mode of trade.
- The sellers also gain good market through this method and can sell their product to almost every nook and corner of the country.
- The customers need not disclose their personal bank details through this method, thus it proves to be a safe mode of payment.
Though it is highly advantageous to buyers, the sellers my face several disadvantages like:
- Fear of theft, as there is a possibility for the product to be stolen in the midway of delivery.
- Some customers will return the product, making it a loss of transport to the seller.
- Also this method is time consuming and the seller will get the payment only after a day or two after his goods are dispatched.
