What is Cash On Delivery And What Are The Challenges That Come With It! 

Cash on delivery is a term that is heard or seen often in online shopping. Cash on delivery is referred to when you order something online and you pay for it when it arrives on the delivery of the product.

Cash on delivery is opted for by almost all the people as it is convenient and you just simply have to pay when your order arrives. Cash on delivery is also done by people who are not practicing net banking so they just pay by cash. 

Many people think that cash on delivery is hassle-free because you simply pay when your order arrives and if some problem occurs and your order is not able to reach you,  you do not pay and cancel the order. This method is beneficial to the customer but it is not always beneficial to the seller as cash on delivery sometimes puts the seller in a very tight situation and they suffer great loss.

Challenges That Comes With Cash On Delivery 

Cash on delivery is chosen by many people for its advantages but nothing in this world comes only with pros, there are cons also that are known only when the particular thing is practiced in a long run.

Similarly, cash on delivery also shares its part in some disadvantages that come with it. Some of the challenges that have to be faced along with the cash on delivery are mentioned below: 

Loss On Cancellation 

If the customer cancels the order when it is shipped or when it is about to reach the customer or even at the time of delivery. The seller suffers a huge loss as the seller has invested the money in the shipment and delivery services but not it will all be of no use as there will be no cash received by the customer that can sum up the shipment and delivery expenses.

This way the parcel goes back to the seller and there is no profit in fact the seller goes in the loss. And this happens very often that is why most of the sellers are going for only online payment these days. 

Customers Cannot Get Their Parcel Until And Unless They Pay

If a customer orders a parcel and then goes out of station then in that case the customer will not get its parcel until that person pays at the time of delivery. 

Even if the customer tells anyone else to take the parcel in his/her absence, the same problem still stands: who will pay for the delivery by cash. This type of problem also occurs so if the person has opted for cash on delivery then he/she may not go anywhere out of the station. 

Orders Will Not Come In Bulk

If a customer has ordered a lot of products in one order. If it is a cash-on-delivery order, then the products will arrive one by one at the delivery address because everything has to be paid one after the other at the time of delivery. 

This is very troublesome because the products do not come all together so if you want to do something that involves all the products then you will have to wait until all the products arrive. 

While on the other hand, this does not happen when you go for online payment, in online payment all the products come to you in bulk at one time which is very convenient. 

Risk of Contact In Pandemic Time

By going with cash on delivery you are choosing to have contact with the delivery agent. The exchange of money from one person to another may transfer germs from one person to another, and this is very dangerous for both of them. So in this era when we are surrounded by pandemics, we should try to avoid this method of payment and switch to online payment.

Advanced Payments Can Not Be Practiced 

Some businesses like the online businesses that run only on social media platforms only accept advance payment to confirm your order. But if you only practice cash on delivery then you may or be able to shop from these platforms because they only accept online payments. They do not accept cash on delivery because they are based in different cities and cash on delivery will be a hassle for them to collect.

This is because on social media the businesses are mostly small businesses that are why they need advance money so that people cannot cancel their order at the last moment and they suffer loss. 

Extra Delivery Charges

When you go for cash on delivery you will always have to pay some delivery charges on every order of yours. These are the charges that usually occur with accommodation of the parcel etc. Even if your product is of less amount till if delivery charges add up, that very same product will cost more money. 

In this way, you will spend more money on the product which is not that expensive.

So the above were some challenges that come along with the cash on delivery option so if you are going for it make sure you always keep these things in your mind. 

Conclusion 

Cash on delivery is easy and essential but there are many drawbacks also at the same time so we should always keep in mind that if it is not bad urgent and you are not going anywhere from your home for the time being you can go for the cash on delivery option.

But if you are ordering something from a place which is far away from you and you also have to get it urgently then you must go for the online payment option because that is efficient in this type of situation. 

So Paypound is always here to tell you what you should be aware of while doing cash on delivery. You can always count on Paypound. 

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