Same Day Delivery Services in Dubai

How Cash on Delivery Service is Beneficial for Your Business

The fast-moving world requires people to look for smart ways to get things done in less time. It seems like each other person is on the run. Shopping is no different. While there are shopping freaks spending hours in the malls, many prefer to scroll online shops for their needs. It saves time and energy. Also, the COD “cash on delivery service” has made the shopping experience smooth.

So, you want to have a fancy meal but don’t feel like going out? For that reason, look for a “cash on delivery near me” restaurant. It would be no surprise if you already have some cash on delivery apps installed on your phone. It is convenient and secure to pay once you get the goods only because you know what you paid for is in your hands.

Cash on delivery websites set you free from hassled transactions. Hence, shopping remains fun rather than becoming a headache. You may have used other payment options too. But, it’s safe to say that cash on delivery (COD) provides you peace of mind and its simplicity is like no other. Also, you can avail cash on delivery shopping if you don’t hold a bank account because cash is straightforward? What else would you want as a shopper? COD offers you simplicity, peace of mind, and security at once.

Above all, cash on delivery business model protects the interests of both the customer and the service provider. So, when you opt for COD clothing, the outlet you shop from also benefits because of the long-term advantages.

Cash on Delivery Service (COD)

What does Cash on Delivery (COD) mean?

Pay for the goods you order at your doorstep is the simplest cash on delivery meaning. It is likely to be one of the most convenient transaction methods. Another business term for cash on delivery is “Collect on Delivery” or COD. Most buyers prefer COD payment mode for the goods and pay at the time of delivery.

However, collect on delivery does not only mean to pay cash. So, you may choose to pay in some other form, the one to which the seller agrees. Hence, you may pay through a check if you don’t have cash, or make an electronic payment –especially a big amount.

How Cash on Delivery (COD) works?

In contrast to other payment methods, cash on delivery business model is rather simple. The process begins with placing an order and ends with its execution.

Let’s say you are personally dealing with a merchant. You purchase readily available stock. Now, you can pay in cash once the goods are delivered.

Note that when you place a big order with an E-commerce company, you may agree to a COD shipping setup. Therefore, you may defer the payment until the delivery of the goods.

  • All you have to do is place an order, then sit back and wait for the goods to arrive.
  • The company, you have placed the ordered with, will outsource the item.
  • Now that the item is sourced, the company will prepare a delivery receipt. The challan or receipt attached to the good makes retrieval easy.
  • The company then contacts a logistics company to deliver your order.
  • A representative of the logistics company will drop your parcel/ order at your door.
  • Pay the cash or swipe a card.

The delivery agent deposits the amount in the office. After deducting delivery charges, the logistics company finally forwards the amount to the e-commerce company or the supplier.

Why Buyers Choose Cash on Delivery (COD) Method?

While there are many payment options available in today’s world, most people tend to avail cash on delivery services. The surge in the COD payment method accounts for several reasons.

Smooth Transactions

First, cash on delivery (COD) is a smooth way of making online transactions. Due to its simple structure, a buyer with average computer knowledge can also have an online shopping experience. So, there is no need to enter long bank account numbers or CVV digits. A click on the COD option and you are good to go.

Relieves the Stress

Paying beforehand can probably be troublesome for some. What if you make an advance payment, but the seller does not dispatch your product? Of course, no one wants their hard-earned money to go in vain. You should choose cash on delivery because it saves you from a potential money loss.

Flexibility in Payment

Further, another with online shopping is getting a defective good. However, the cash on delivery USPS reduces the risk. Hence, when you receive your order, make the payment only after checking the product. In case the piece is of low quality, you can always choose to return it instantly. So, the delay in delivery or damage does not affect your peace of mind.


Choosing cash on delivery certainly is a secured payment option. Hackers can access your personal data anytime and rob you of your money. While it is true that cyber hackers have become very smart, you can outclass them with COD because it is secure. You are safe because you don’t have to provide your financial details, such as your debit or credit card numbers.

No Hidden Charges

Also, while advance payments have their perks, cash on delivery is a more feasible method. Most likely, you have bought something from Amazon via cash on delivery method. Do you know that there are no extra charges on cash on delivery amazon? Amazon is going the extra mile with this step. Likewise, many leading companies don’t charge an additional amount on COD.

How Cash on Delivery Helps Business?

Like other countries, online shopping has become a trend in UAE as well. Also, Google & Brain & Company has predicted that the UAE e-commerce market will reach $9billion by 2022. Further, it is estimated that the market will grow at a rate of 31% per year.

Notably, nearly 56% of buyers in the UAE, Saudi Arabia, and Egypt, prefer online stores for shopping. In addition, most of the online shoppers make transactions either with cash or card. Meanwhile, another research suggests that nearly 70% of buyers from these countries pay through cash on delivery (COD).

Benefits of Cash on Delivery (COD) for Business

Companies should try to incorporate the COD method because many shoppers like to make the payment through cash on delivery services. Let’s have a look at the many advantages of COD you may enjoy as a businessman:

Increased Customer Reach

The hassle-free transactions make COD a popular choice among buyers. Offering this smart payment option, you can cater to many potential buyers because of how comfortable they are with it. Hence, introducing the COD method will increase your customer reach.

Improved Customer Facilitation

COD has a simple workflow. Also, it saves your customer from complications. So, when a customer is not asked to enter his/her financial details, he/she is satisfied. Not to mention, satisfied customers are an asset for your business because they keep coming back. Therefore, they are your best assets because you don’t have to spend any acquisition costs on them.

Attract Potential Buyers

In addition to facilitating existing customers, offering cash on delivery services help you attract buyers. Undoubtedly, it is not easy to trust online sources easily. But, when buyers know they have to pay on delivery only, they don’t mind to try out a new site. Hence, cash on delivery is an excellent way to lure new customers.

Customer Retention Tool

Winning the trust of your customers and retaining them is a continual struggle. When the customers are assured that their money is secured, they tend to visit the page again. Surely, the instant return option and payment on delivery only develops trust. Therefore, providing the flexibility of cash on delivery helps in customer retention.

While there are so many ways in which cash on delivery helps your business, there are some risks too.

The Customer is the Boss

The flexibility of cash on delivery can be damaging to the business. No wonder, the increased return order is a costly affair. Since the customer has the authority, he may change his/her mind. Or, the buyer may reject the product claiming it to be defective. In such a case, you suffer a financial loss.

Fraudulent Customers

Sometimes you may encounter fraudulent activities from the customer’s end. Since there is no authentic information of the customer, there is an increased chance of a mishap.

Delayed Payments

The payment of your POD products reaches you after seven days of the delivery date. Hence, you may face interrupted cash flow.

Additional Charges

When you offer to pay COD to your customer, you have to hire a shipping partner. And you have to pay extra money to the shipping company for their services.

Cash on Delivery for Small Business

If you think that only big companies can offer their customers the cash on delivery facility, then you are wrong. You can offer cash on delivery for small businesses as well.

Also, cash on delivery is beneficial even if you are delivering goods in bulk. Your customers won’t have a problem with waiting for their order because they know their money is safe. Think about it if you haven’t already. Don’t know how to step up COD for your small business; here is how you can do it.

Prepare a List

First, keep a record of customers interested in cash on delivery. That is to say, write down the names and their orders properly. Certainly, when you spend some time in documentation, you will be able to avoid any confusion. So, the list will help you track the clients. Hence, you won’t miss out on any of the clients willing to pay through cash.

Label the Products

The first step is the order placement. Now that you have got the order, your next job is to place it in a box with proper labels. Also, don’t forget to write the correct pickup and drop off location on the box.

Labelling the boxes will make the delivery process easy for drivers. Consequently, they make the job easier for drivers because they can avoid delayed deliveries.

Schedule Delivery Timings

Make proper forms and labels of the ordered products because they help with cash on delivery option. As a businessman, this will make the cash handling easy for you. Also, make a schedule for delivery timings similar to a calendar. To clarify, the schedule will serve as a reminder for the upcoming order. Hence, scheduling the timings will help to avoid any delays in the delivery.

Ensure Proper Product Boarding

Keep the delivery products of a certain area in one place. Keep a record of the delivery location because you will be able to avoid any mishap. After that, each product will be boarded in the right track and won’t be delivered to the wrong customer. As a result, you will be saved from paying the compensation loss.

Track Your Driver

Dispatching the order does not end your duty. Certainly, you have to make sure to keep track of your driver’s en route via your company’s app. Likewise, your drivers must keep updating you with the location. As a result, you will know the delivery status of your product as well.

Final Update

You can sit back and relax once your delivery agent reaches the customer’s location. However, don’t forget to take an update from him after the cash on delivery by the client. Finally, ask your agent to submit the amount in the nearby office. The driver will collect his fee from there only.

Courier Company; Your Essential Companion

The cash on the delivery process becomes smooth when you get an efficient companion, i.e., a courier company. Making the right choice is crucial, especially for last-mile delivery. For this purpose, you need to enrol with a carrier company. Hence, you will qualify for cash on delivery transmission.

Many courier companies are out there. You will have to pay a small amount for the cash on delivery task to them. You can associate with courier companies as vendors too. ViaMe is a smart choice if you wish to work as a vendor. The “Urban Delivery Partners” take charge of the entire delivery process.

All you would need to do is pack your product and keep it ready for pickup. Further, the ViaMe rider will pick up your product from your location. The driver will make sure to deliver the product to the right client. Also, you don’t need to worry about the cash on delivery. The company will transfer the payment to your account within the prescribed time.

Closing Words

Cash on delivery (COD) model suits best to the majority of online customers across the globe. The smooth transaction, the secured procedure, and the payment flexibility make it a top choice. Also, cash on delivery helps the customers to avoid financial loss and ensures money security.

On the other hand, sellers also enjoy many advantages by offering cash on delivery payment option because of trust-building. COD helps the companies establish a trust relationship with clients. Cash on delivery services helps the business organization to retain cash-friendly customers. It increases your customer reach and helps you to gain loyal customers.