COD Amount

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What is COD Amount?

COD amount is the amount a customer needs to pay after they receive the product. It is similar to every other available online payment method in the e-commerce spectrum. The cash on delivery amount is calculated by adding the product price, the service tax, and the delivery charge.  

Significance of COD Amount in an E-commerce Shipping and Delivery

COD amounts are initiated when a customer opts for cash-on-delivery option. It allows brands to gain more exposure, and customers can pay only when they receive the product. 

  • Better exposure: COD payment is a convenient way for consumers to pay for products. Adding a COD payment option allows a brand to tap into better exposure amongst customers. 
  • Exact estimates for the developing demographics: As taxes and shipping charges are applied, COD amounts tend to differ from the product’s price. A COD amount lets customers understand how much they need to pay when the product arrives at their doorstep.

Prerequisites of COD Amount and How It Works

An online retailer must have the required plugins to quote the shipping cost to a specific location and the payable taxes. The cash on delivery amount is then computed per the mentioned metrics. 

  • Once a customer selects cash-on-delivery as their payment option, a COD amount is computed. 
  • Based on the calculated COD amount, a customer can order the product. 
  • The buyer pays the cash on delivery amount to the courier once the delivery is completed. Subsequently, the amount is deposited into the partner’s account after deducting the shipping fees.  

Use Case With COD Amount

A customer buys a pair of jeans worth ₱240 and pays ₱267 as the COD amount after receiving the product through cash-on-delivery. It includes all the delivery charges and other payments. Customers get additional time to pay full payment. 

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