What is cash on delivery and what are its benefits and disadvantages

In our time, the popularity of online stores is growing day by day. It's not surprising - because with the help of modern web technologies, you can conclude quite profitable transactions and save time. At the same time many potential buyers are afraid to get on scammers and so they are increasingly interested in what a cash-on-payment is, and whether it makes sense to choose this method of payment. They say that it is quite safe and very beneficial for both the customer and the trader. Is it really? Let's try to figure it out.

What is cash on delivery?

The essence of this method is that the sender instructs the postal communication facility to collect a certain amount after the delivery from the addressee (receiver) and send it to the address specified in the corresponding form. And as a courier can act as a public communications company, and any commercial organization, such as "New Mail". The cash on delivery is applied, as a rule, for parcels and parcels with an assessment of the investment, i.e. valuable. Probably, many already had a question: "Can I send letters with him?" The answer is - it is possible, but only if they are of declared value. Therefore, if the weight of the shipment does not exceed one hundred grams, it can be sent by a valuable letter and thus save some on the delivery services. Speaking of what a cash-on-delivery payment is, it should be noted that the amount of the parcel evaluation can not be less than its value. All the necessary information is indicated on a special form for postal money order, while for packages sometimes there are duplicate forms, on which it is necessary to indicate both the data for sending and for the transfer of funds.

Benefits and disadvantages

Many buyers who have had time to try out what a cash-on-delivery payment is in practice have already made sure that to purchase expensive things from new, not yet established sellers, this method of delivery is very convenient and reliable. After all, you can be sure that money will not be lost and the goods will definitely come. At the same time, despite all the obvious advantages, it can not be said that this method of sending will always be the best for both sides. The downside for the buyer is that the cost of receiving is inevitably increased, since the tariffs for valuable mailings are greater than for simple ones. In addition, you will still have to pay a commission for sending money to the seller. All this can so increase the total cost of the received product, that it will become equal to the price in a regular store. Again, if you decide to place an order by cash on delivery, do not forget to check the purchase right at the liaison office. It may well be a passer-by, who will fill the inside of the parcels with different garbage, which you will find only when you get home. Therefore, you should always remember that the name "cash on delivery" does not at all mean absolute certainty that the purchase will go smoothly. However, the example given is rather a rare exception than a frequent occurrence. As for the seller, for him such a delivery option is only an additional way to attract more potential buyers and earn trust. In contrast to the advance payment, the period for receiving funds can increase to 14 days. And besides, there is always a possibility that the buyer suddenly changes his mind and does not pick up his order. In this case, the dispatched goods can be received back only in a month, and with the costs of forwarding it is necessary to reconcile. Conclusion

Thus, the cash payment justifies itself, if the order has a great value for the buyer, and the seller is little known and can not yet boast of a large number of positive feedback. That is, when guarantees are needed. Otherwise, if the purchase from such a seller occurs not for the first time or the price of the goods is not too large, it will probably be better, after all, to choose a prepayment.