E-Commerce and Cash on Delivery: Back to the Future

Written by Timothy Byrnes | July 31, 2014

While the globalization of payment systems - from credit cards to Paypal - has been the key catalyst for international e-commerce, there has been a resurgence of the traditional “cash on delivery” or COD.

Offering a cash on delivery option - especially for international e-commerce merchants - provides an essential element of security by the buyer. We have been surprised by the increase in orders from our international e-commerce clients after they include a COD option.

While many associate the COD option with developing economies, cash on delivery is increasingly becoming the payment of choice for international e-commerce customers in France, Canada and the United States.

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Package Cash on Delivery to France, Italy

Advantages of sending international shipments via cash on delivery:

Customers do not need to use a credit card
Credit card fraud continues to be an obstacle to international e-commerce transactions
As payment is not due at time of ordering, the average C.O.D. order is often higher than orders via credit card
Offering C.O.D. gives the e-commerce seller greater credibility
Offering C.O.D. payment options increases the potential sales

Disadvantages

C.O.D. payments require additional administrative costs
C.O.D. administrative costs are offset by not incurring credit card processing fees which average between 2-5% for most international e-commerce merchants
C.O.D. shipments can have a higher rate of return
The rate of returns, however, are manageable through more clear product descriptions and having a local return center in the destination country.

Popularity of Cash on Delivery in the developing economies:

To many countries, C.O.D. is the preferred payment option due to cultural reasons and the percieved risk of not receiving a product that has been paid for. Areas with a predominance of C.O.D. deliveries include India, the Middle East and the Caribbean.

Cash on Delivery for E-commerce parcels to South America:

Jet Worldwide is able to assist with C.O.D. delivery systems to Mexico, Brazil, and all other South American countries. We have experienced particular interest for cash on delivery to Mexico from American and international e-commerce companies.

Popularity of cash on delivery in Europe and North America for international e-commerce:

A growing volume of European e-commerce in Europe is originating in Eastern European countries. The biggest recipient of e-commerce parcels are France, Germany and the UK. Having a C.O.D. payment option allows Eastern European e-commerce companies to build volumes through greater credibility with consumers in leading European countries.

Jet Worldwide has witnessed an incredible growth in e-commerce shipments from Eastern Europe to France when C.O.D. is offered.

Jet Worldwide Cash on Delivery Services to France

French Parcel delivery with C.O.D. option
Domestic distribution
Returns
Check collection, processing, and deposit

Sending e-commerce shipments from Quebec to France:

Companies in Quebec can benefit greatly from our unique capabilities for sending e-commerce shipments from Quebec to France.

Jet’s extensive network of local agents are uniquely qualified to help you establish a reliable C.O.D. delivery system to virtually everywhere.

Getting quote for shipping between France and Canada.

Jet Worldwide gives access to all companies seeking shipping quotes between France and Canada for parcels pallets, and online orders. CONTACT OUR LOGISTICS PROFESSIONALS: For a quote for shipping online orders, provide details including shipping volume, item(s) being shipped, average value and weight of each parcel. The more details the better :).

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