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Does anybody ship COD (Cash on Delivery)
Thinking of dropping service?

 1:05 pm on Jan 29, 2004 (gmt 0)

When we first started our web site in 1998, we were told to accept as many forms of payment as possible, so we started accepting COD's.

I have noticed since then, very few sites now accept COD's as form of payment, and a lot of them are credit card only payment.

I guess in Canada COD is more popular than the USA, however it is getting to be a major pain, however it accounts for 8-10% of our sales.

The downside is that our return rate (refused or unclaimed parcels) has steadly risen over the years to 5% of all COD shipments. Canada Post is now charging the shipping twice, so when a parcel is returned, we pay the shipping twice, and the COD fee, not counting the labour and time that went into packing the parcel.

When they do pick up the parcel, many of them have to wait until payday (sometimes even two paydays), and you do not see your money for 4 - 6 weeks.

I just wonder, if we drop the service, if the 10% will go somewhere else, or will scrounge up their parents or friends credit card, or will send a money order instead.

I think the COD people fall into two categories.

a) People with bad credit and no credit cards, or
who are maxed out.

b) People that want security, and wants to see a
parcel before handing over money.

Anyways, has anybody had any experince with handling COD's, and then cancelling the option, or any other comments or experinces?



 3:12 pm on Jan 29, 2004 (gmt 0)

I'm from Canada too, I was going to give the option of C.O.D. but decided against it. (like you said, too many headaches) so I decided to accept personal checks instead. I don't think you will loose any customers (except maybe the deadbeats) Very few companies offer C.O.D. and very few customers expect that option online. As far as wanting to please those who want to see the item first... offer a no quibble money back guarentee minus the return postage. That way you're not out much and the customer won't complain if you spell it out for them. Be honest with them, establish good communications with them and you will probably gain customers. By the way, a 5% return rate can be expected.


 6:20 pm on Jan 29, 2004 (gmt 0)

I'm in the U.S. and haven't seen C.O.D. options in several years. But then we give credit cards to any chimp with a mailbox...

The last C.O.D. items I bought was an Elvis Presley 8 vinyle record collection 20 some years ago...


 8:08 pm on Jan 29, 2004 (gmt 0)

I disagree about the ease for getting credit cards. It took me two attempts to get one for my dog and my cat was turned down twice before he got one.



 9:32 pm on Jan 29, 2004 (gmt 0)

I used to offer cheque payments but the amount of time people wolud tell me Ill post it to night blah blah.

Never saw one, so I stopped. I have done this though, on occasion customers pay by CC and worry the hell that its not going to show, I have (this takes nerve) refunded the money and told them to pay me when it shows.

All of these customers have paid me. However none have come back and bought something else. So maybe its not worth the risk.


 10:29 pm on Jan 29, 2004 (gmt 0)

I am going to pull my COD payment option, and only
continue to honour it for my existing repeat customers.

It looks like we are a 100% plastic money society.


 11:59 pm on Jan 29, 2004 (gmt 0)

My cat wants to know how to get a credit card? He's got his eye on one of those new powered litter boxes. I want a chimp, I want a chimp!
Tell your customers to show you there money first!
It works with dope dealers! But not with honest hard working dudes like us? Somethings wrong with this picture?


 12:03 am on Jan 30, 2004 (gmt 0)

Not that I know how a dope dealer operates... I want to stress that fact... Whew! I thought I just saw a chimp run by my window?


 6:27 am on Jan 31, 2004 (gmt 0)

> Anyways, has anybody had any experince with handling COD's

When I work with new vendors, COD is the preferred way to transact. There's no risk to the seller and you as the buyer do not give up any sensitive information. I have one buyer who wants to use it because 1) its a giant purchase 2) he has never worked with me. Once he is comfortable doing business with us, he will fork over the CC! :)


 2:52 pm on Jan 31, 2004 (gmt 0)

Yes, COD is very common for business transactions, until credit is establihed for B2B relations. However
for B2C it appears now dead. Even Sears Canada catalogue shopping, that used to ship partically everything by mailorder COD in the past, has quit for all web based transactions.


 12:32 pm on Feb 2, 2004 (gmt 0)

There is certainly a risk to the seller if the buyer uses a bad check to pay for the COD. We stopped taking them many years ago for that reason. Maybe things have changed.

With UPS you could specify no checks.


 5:41 pm on Feb 2, 2004 (gmt 0)

With Canada post, you can specify cash (in a form of a money order) only. Ocassionaly, the staff of Canada Post did not read the instructions, and accepted a cheque instead. In a couple of cases the cheque bounced, but Canada Post accepted the liability, as they took an unauthorized form of payment.

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