Glossary
COD (Cash on Delivery)
Definition
An order the customer pays for when it is delivered, with the courier collecting the cash and remitting it to the seller later.
COD raises conversion and raises risk at the same time: higher refusal rates, higher RTO, and money that only reaches you after a remittance cycle.
For a COD order, delivery is not the end of the transaction. Tracking remittance against the order is what lets you find amounts that were delivered but never paid over.
Related terms
- RTO (Return to Origin)A parcel that was never delivered to the customer and is being sent back to the seller, usually after failed delivery attempts or refusal.
- SettlementThe payment a marketplace makes to a seller for a period of orders, after deducting commissions, shipping, fees, promotions, penalties and tax collected at source.