Cash on delivery shipping: the easiest way to sell to every type of customer

Offering cash on delivery as a shipping method at your e-commerce checkout is a simple way to boost your sales, since it gives your customers another payment option to choose from.

Statista ran a study looking at the payment methods used most often by online shoppers in Spain.

The results show that cash on delivery dropped from 16% in 2015 to 10% in 2018, but it remained one of the most popular methods among shoppers.

Still, a few questions tend to come up: Is it a secure payment method? What if the customer opens the package and then decides not to pay? Can you offer international cash on delivery shipping?

We answer all of these questions in this article, and explain why cash on delivery deserves a place in your e-commerce logistics.

What is cash on delivery shipping?

Let's start by defining cash on delivery shipping before explaining how to offer it.

Cash on delivery is a shipping method offered by nearly every carrier. It gives the recipient the option to pay the carrier when the package arrives, usually in cash.

In other words, when the carrier reaches your customer's home or office, they hand over the package and, in exchange, your customer pays the exact amount of their purchase.

As the seller, you receive the money your customer paid via bank transfer, unless the carrier offers other payout options.

Can your customer open the package before paying?

Before offering cash on delivery shipping, you should know that your customer normally can't open the package until they've paid.

A cash on delivery transaction comes down to 3 simple steps:

1. The carrier delivers the purchase to the recipient.

2. The customer pays the full amount for the products they bought.

3. The carrier transfers the sale amount to you.

However, if the nature of your products (or any other reason) means you want your customer to be able to open the package and check it before paying, you'll need to specify this on the delivery note.

Only then will the carrier allow the recipient to open the package before handing over the money. So make sure to put it in writing on the delivery note if you want to offer your customer that option.

Is cash on delivery shipping secure?

Cash on delivery shipping is a secure method, without a doubt.

The buyer doesn't have to enter their card details, or any other payment information, on your online store. For some shoppers, that makes this method feel more secure and private.

From your side as a seller, you're also guaranteed to receive the payment for that sale.

That said, as with any transaction, there's a certain level of risk involved in using this method.

From the buyer's side, they might receive the wrong products, or products that aren't in perfect condition — though that risk exists with every shipping method.

As a seller, one issue you might run into with this method is a customer deciding not to keep the package. If that happens, you'd still need to pay the shipping cost to the carrier.

Overall, cash on delivery shipping is secure. The risks that you as a seller and your buyer take on are practically the same as with any other shipping method.

Benefits for your customers that turn into a big opportunity for your business

Most of the benefits of cash on delivery shipping go directly to your customers, and that translates into higher conversion for your online store.

As they say, the best advertising comes from a satisfied customer, so use this as an opportunity to increase your sales and reach more potential customers.

Here are some of the benefits you and your customers can enjoy with cash on delivery shipping:

• Your customer won't cancel the order once it's already on its way to their home, helping you avoid the financial impact that would have on your business.

• You build more trust in your online store with this shipping method. Customers know they can pay once they've received their order, which makes it one of the shopping experiences closest to buying in person, since payment happens at the moment of delivery.

• Your customers won't need to enter their card details on your website — ideal for shoppers who are more cautious about sharing their information.

• Since the buyer doesn't pay upfront, they'll feel more confident buying from your online store.

• It's a shipping method that more and more shoppers are asking for, making it one of this year's e-commerce trends.

How to offer cash on delivery shipping

Shipping a package cash on delivery is simpler than it sounds, even though the steps differ slightly from other shipping methods.

All you need to add is one extra detail: the amount your customer needs to pay for their products.

And, of course, request the service itself.

When you book the additional cash on delivery service, you'll need to tell the carrier the exact amount to collect from the recipient. That's all there is to it.

Some carriers, like UPS, will collect the amount specified in the cash on delivery code or on the shipping label itself, so the amount is always visible to the carrier.

From there, the journey of the order is similar to any other shipping method. The carrier delivers the purchase to your customer, but not before collecting the amount you specified when you booked the service.

A few days later, you'll have the money from that sale available to you.

Can you offer express cash on delivery shipping?

Sendcloud's 2020–2021 E-commerce Study found that delivery times are an important factor for 43% of respondents when deciding where to shop online.

As mentioned earlier, 10% of online shoppers prefer to pay cash on delivery over any other method.

So if you offer express cash on delivery shipping, you'll have an option for all of your potential customers. That alone can boost your conversion rate and help your business keep growing.

To do this, simply choose a carrier that supports this type of shipment, such as Correos Express, MRW, UPS, or SEUR.

With any of these carriers, you can book express shipments with cash on delivery payment. That way, your customers get their products quickly and can pay as soon as they receive them.

Can you offer international cash on delivery shipping?

But what happens if the delivery address is outside Spain and your customers want to pay only once they've received the package at home? Can you offer cash on delivery outside your home country?

Yes, you can, but this service is only available for certain countries.

To offer international cash on delivery shipping, you'll need to book the service with carriers that support it.

These carriers shouldn't be missing from your multi-carrier setup if you want to offer international cash on delivery shipments:

• Correos, for shipments to Andorra and Portugal

• MRW, if your customers are ordering from Portugal, Gibraltar, or Andorra

• SEUR, for shipments to Portugal

• UPS, for shipments within the European Union, Norway, and Switzerland

So if you sell abroad, make sure to offer these carriers' services at your checkout. The more shipping options your customers have to choose from, the less likely they are to abandon their cart.

Cash on delivery shipping: which carriers can you use?

We've already covered the benefits of cash on delivery shipping and how secure this payment method is.

So now, let's look at the steps you need to follow to ship a package cash on delivery with each of these carriers:

• Correos Express

• Correos

• MRW

• SEUR

• UPS

Keep in mind that, due to COVID-19 safety measures, this shipping method may change depending on each carrier's own rules. That's why we recommend staying up to date on any changes that could affect your shipments, so you can keep offering your customers a great service at all times.

Cash on delivery with Correos

Correos is another major carrier that offers cash on delivery shipping, with 2 ways to pay out your customer's payment:

1. Via a deposit order at the bank of your choice. The maximum amount for this option is €2499.99.

2. Via a standard money order sent to your home address. You can choose this option if the amount doesn't exceed €499.99.

This additional Correos service is only available with the following shipping methods:

Paq Estándar

• Service conditions: available across Spain, Andorra, and mainland Portugal.

• Delivery time: with Paq Estándar, your customer receives their order within 48 to 72 hours.

• Requirements: packages can't exceed 30 kilograms or 210 centimeters.

Paq Premium

• Service conditions: available for shipments to Spain, Andorra, and mainland Portugal.

• Delivery time: the package takes 24 to 48 hours to reach your customer's delivery address.

• Requirements: the package can't measure more than 210 centimeters or weigh more than 30 kilograms.

Cash on delivery with Correos Express

To ship cash on delivery with Correos Express, you can choose one of these shipping methods and book the additional cash on delivery service:

ePaq 24

• Service conditions: this shipping method is only available within mainland Spain.

• Delivery time: the shipment arrives 1 business day after the package is admitted.

• Requirements: the package can't weigh more than 40 kilograms or measure more than 240 centimeters.

Express Islas

• Service conditions: a specific service for the Canary and Balearic Islands.

• Delivery time: depending on the destination, the package can take 1 to 7 business days.

• Requirements: the package can't measure more than 240 centimeters in total or weigh more than 40 kilograms.

Correos Express only collects the amount due in cash and pays you out by bank transfer within 4 to 5 business days. The maximum amount for this service is €2499.

If you're interested in offering cash on delivery shipping, you can upload your own Correos Express contract to Sendcloud and start shipping with this method.

Cash on delivery with MRW

This carrier's cash on delivery service can only be booked if your customer's payment amount, for deliveries within Spain, doesn't exceed €2500.

However, if the shipment is headed to Portugal, you can only book the cash on delivery service if your customer's total purchase isn't more than €1000.

After collecting payment and delivering the package, MRW pays you out by bank transfer within 3 business days (4 if the destination is Portugal).

These are the shipping methods you can choose from with MRW for cash on delivery shipments:

Urgente 8:30

• Service conditions: available for Spain, Andorra, Gibraltar, and mainland Portugal.

• Delivery time: packages are delivered before 8:30 a.m. on the business day after the shipment is admitted.

• Requirements: each package can't weigh more than 80 kilograms or measure more than 300 centimeters.

Urgente 10-19

• Service conditions: shipments are delivered in Spain, Gibraltar, Andorra, and mainland Portugal.

• Delivery time: depending on the shipping method selected, the package is delivered within a time slot ranging from 10 a.m. to 7 p.m.

• Requirements: packages sent with this service can't weigh more than 80 kilograms or measure more than 300 centimeters.

Keep in mind that MRW only collects cash from your customer, so it's a good idea for them to have the exact amount ready to pay the carrier.

Cash on delivery with SEUR

SEUR's cash on delivery service is one of the fastest for paying out the sale amount to the seller. You'll have your money available in as little as 24 hours (48 hours if the destination is Portugal).

This service also includes insurance in case of loss or damage to the products.

SEUR 24

• Service conditions: available for shipments anywhere on the peninsula, including Portugal.

• Delivery time: packages take 1 business day to be delivered, though this can take up to 2 business days if the destination is Portugal.

Cash on delivery with UPS

UPS's cash on delivery service is available for shipments within the European Union, Switzerland, and Norway.

Accepted payment methods for this service vary depending on your customer's purchase amount. For example, if the recipient wants to pay in cash, the amount can't exceed €500.

However, if they choose to pay by check, the total purchase amount can't be more than around €42 166 (the equivalent of $50 000). For check payments, you also have the option to specify that UPS should only accept bank checks or postal money orders.

With this method, UPS will make 3 delivery attempts to collect payment. If payment can't be collected, the package is returned to you.

Keep in mind that this cash on delivery service doesn't include insurance in case of loss or damage to the products.

If you choose UPS for cash on delivery shipping, these are the shipping methods available to you.

Standard

• Service conditions: available for shipments within the European Union, Switzerland, and Norway.

• Delivery time: packages shipped domestically, or to another European country, take 1 business day to arrive.

• Requirements: the package can't weigh more than 70 kilograms, and combined length and girth can't exceed 400 centimeters.

Express

• Service conditions: available for shipments within the European Union, Norway, and Switzerland.

• Delivery time: the package takes 1 to 5 business days to arrive, depending on the destination.

• Requirements: the package can't weigh more than 70 kilograms, and the sum of length and girth can't exceed 400 centimeters.

Steps to set up this shipping method with Sendcloud

Have you chosen the carrier, or carriers, you'd like to use for cash on delivery shipping? You can set it up with Sendcloud in just a few clicks:

1. After signing up for free, connect your online store to Sendcloud.

2. Select the carriers you'd like to work with and integrate them into your store.

3. These shipping methods will appear at your checkout.

That's all it takes!

Already have a Sendcloud account? You'll find a step-by-step guide to setting up cash on delivery shipping with Correos Express and MRW in our Help Center.

You can also print shipping labels, send tracking notifications to keep your customers informed about their order status, and much more — all from the same dashboard, to help you manage your shipments faster.

Want to see how to set up cash on delivery shipping yourself? Sign up for free with Sendcloud, or book a no-obligation demo and one of our experts will walk you through the Sendcloud platform.