What are cod payment terms?

A customer's COD payment terms will typically be outlined in their purchase agreement with their supplier. When a COD customer places an order (online or through other means), they will select cash on delivery as their payment method.

What is cod delivery & how does it work?

COD delivery also transfers most of the risk associated with sales from the buyer to the seller, and there's no guarantee the seller will ever get paid. In addition, with COD, customers are free to change their minds for any reason and refuse delivery, which results in lost profits and the additional cost of shipping merchandise back to you.

Is cash on delivery better than traditional cod?

While traditional COD offers suppliers some cash flow advantages and protection from credit risk, it’s safe to say the downsides heavily outweigh the benefits of cash on delivery—especially when you consider that there are alternatives available for collecting from your COD customers. Here are two alternatives to traditional COD transactions: