Cash on delivery is that method of delivery
and payment receiving in which goods are sold online and its sale will be
received when goods are delivered physical to customer. Customer will choose
cash on delivery option when he will place purchase order online on ecommerce website. Instead of cash, customer may give cheque when he will get delivery of
his bought goods. Its small name is COD. It is most popular in customer because
he need not go to bank for paying advance money to supplier of product.
Benefits
1. In my ecommerce website,
I survey from Indian customers. They fear from paying advance money through
bank transfer because some cheat with them.
2. It will increase the
goodwill of online seller, if he will keep cash on delivery option in the modes
of payments of product.
Disadvantage
1. If customer does not buy,
seller will loss the delivery charges. Because seller has to pay advance these
delivery charges on the behalf of customer but if customer will reject. It will
be big loss. I have also faced this loss due to reject my products by my
customers.
2. Seller will be delay of
getting payment from customer through COD. I often receive payment of my COD
after 15 to 20 days after selling and delivery of products.
