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As an e-commerce merchant, you’re always looking for new options to increase customer satisfaction as well as conversion rates. One way to do that is by offering the most popular payment methods per target market. One of those options that are increasingly relevant is called Cash-on-delivery. Cash-on-delivery can not only help you increase the cash flow by getting the money in your account quickly and effortlessly but also build trust among your customers.

What is Cash-on-delivery?

Also known as cash-on-delivery it is a type of payment method where a customer pays for a product or service at the time of delivery. This means that the customer does not have to pay upfront before the delivery is made. The purchase conditions and methods of payment accepted may vary and should be previously agreed upon between the e-commerce and the customer. 

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We know the name already says it... cash on delivery, but the truth is that cash is not the only payment method that online shoppers can use for this service. In fact, payments for Cash-on-delivery can be also processed via mobile payments, checks, or cards.

Finding the payment method that works best in the country where you want to sell is key to continue expanding in Europe. That is why it is important to pay attention to what your customer needs. If you need help with this decision and don't know where to start, you may find this article helpful.

Cash-on-delivery is growing

There are multiple reasons why this is happening but here we will list three of the most important ones:

  • Mostly because customers can inspect the product before making the payment and feel more confident about the transaction. 
  • This method provides customers with a greater sense of security and reduces the risk of fraud. 
  • It has become an alternative for countries with low credit card penetration and where customers may not have access to online payment methods, always offering a more secure payment method.

In general, the popularity of cash-on-delivery in Europe is due to a combination of factors, such as cultural norms, payment preferences, accessibility, and security concerns. 

Besides, it works almost the same as any other payment method through an e-commerce store. When the customer orders a product, they must select the cash-on-delivery option as the payment method and, at the time of delivery, the customer pays the courier the amount due and the transaction is completed.


What should I take into consideration if I decide to offer cash-on-delivery for my business?

First of all, we recommend that you assess the demand from your customers. This means that you should conduct market research to determine if there is demand for cash-on-delivery among your target customers. You can do this through surveys, customer feedback, or by studying the payment preferences of your competitors' customers.

Consider the logistical and financial aspects of offering cash-on-delivery. This involves assessing the costs associated with cash handling, and accounting staff, as well as the potential risks of non-payment, increased operating costs, and theft.

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You need to have a system in place to help you manage cash-on-delivery orders, including verifying customer information, tracking deliveries, and processing payments. This may involve using specialized software or working with a third-party logistics provider.

Make sure you create clear communication with your customers. Inform them of the terms and conditions including any applicable commissions or restrictions. This can help you manage customer expectations and reduce the risk of any disputes or complaints.

Benefits of cash-on-delivery

  • Increased sales are undoubtedly one of the great benefits. With cash-on-delivery, you can attract more customers who do not have access to other online payment methods such as credit cards, or do not trust online payment methods.

  • Customer satisfaction would also increase. Many customers see this payment method as a convenience, as it allows them to pay for their purchases only when they receive them. This also builds trust and loyalty among your customers, which can lead to repeat purchases and positive word-of-mouth referrals.

  • Cash-on-delivery payments are generally safer than other online payment methods for online shoppers, as there is no risk of fraudulent returns or theft of credit card information.

Disadvantages of cash-on-delivery

  • It can happen that the customer does not pay for the product when it is delivered. This would represent a significant loss of revenue, revenue loss, and an increased operating cost.

  • Since the carrier most likely has the cash with them, this may be counterproductive and may increase the risk of theft and loss.


Not only is this a payment method that can offer you significant financial benefits, but can be a valuable way to improve your e-commerce customer loyalty, and expand your market reach. While offering cash-on-delivery can be a valuable payment option for some customers, it also has some drawbacks that should be considered before implementing it as a primary payment option. Finding out what works best for your e-commerce business is the goal.

byrd now offers cash-on-delivery for all companies working with Shopify integration, and thanks to our simple and seamless solution for the business you can be assured that the payments will be collected efficiently and securely. Currently, we offer cash-on-delivery in Spain and we only accept cash as a payment method. Sign up today and start delivering a hassle-free shopping experience.