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Is Cash on Delivery Safe for Businesses and Customers?

When it comes to online shopping, there are a few different payment options available to businesses and customers. One of the most popular ones is cash on delivery (COD), which allows customers to pay for their orders upon receiving them. But you have probably asked one important question - Is COD safe for businesses and customers?

Let's get you an answer to that. Take a look at some of the pros and cons of using this payment method for businesses and customers alike.

Pros and Cons of Cash on Delivery for Businesses

An increase in sales may be one of the most significant advantages of offering COD. In the Philippines, most consumers and potential customers still prefer to pay in cash and may be more likely to purchase if they have the option to pay upon delivery. It also eliminates the possibility of credit card fraud or chargebacks, which can be costly for businesses.

On the downside, COD can lead to business losses if customers refuse to pay upon delivery or give inaccurate information about their location, leading to extra delivery expenses. Aside from security concerns regarding cash handling, your couriers may also charge additional fees for using this payment method.

Pros and Cons of Cash on Delivery for Customers

For customers, COD offers convenience as they can pay only when they receive their items rather than upfront. However, there is also a potential risk for customers if they cannot immediately inspect the item upon delivery and discover damages late. Additionally, COD may not be an option for customers who do not have ready access to cash or reside in remote areas where deliveries may be infrequent.

While COD can be a convenient option for both businesses and customers, it's important to weigh the potential risks and benefits before choosing this payment method. And as with any transaction, exercising caution and protecting your personal information when making payments online is always a good idea.

Ship Cash on Delivery with Shipmates

Shipmates is a shipping platform that picks up packages within Metro Manila and ships them anywhere in the Philippines, which is not even the best part. On our platform, you can choose from multiple couriers that are not only the most popular ones in the country but also very reliable in getting packages delivered to your customers on time and in good condition. Best of all, we can also verify your customer's address so you can ensure that it is legit.

If you're looking for a reliable courier service that can ship cash on delivery, sign up for a free account on Shipmates and get access to couriers, including Borzo, J&T Express, XDE Logistics, and Entrego!

Generally, cash on delivery is a safe option. Still, Shipmates wants the best for you, so it includes features that can help screen your customers better to ensure a complete and successful delivery within Metro Manila and across the Philippines. Happy shipping!