COD Payment Option in Shopify

How to Integrate COD Payment Option in Shopify Store

May 16, 2024 | 10 min read By: admin

No matter how much the world becomes technologically advanced, people still believe in paying with cash on delivery because this is a safer option for them. It is only possible to be scammed if the product is delivered. According to recent data, more than 70% of e-commerce transactions are done by cash on delivery in India. This signifies how fast cash-on-delivery or pay-on-delivery transforms into an influenced and dominant factor for the e-commerce market in India.

There are still people in every corner of the world who use cash on delivery, not just in India. So, e-commerce merchants need to accept the enabling cod in their online stores. Before that, for building your e-commerce store, choose Shopify, the most popular e-commerce platform.

It’s a great way to build trust and cater to those who prefer this method. Here’s the best part: enabling cash on delivery shopify is a breeze! In just a few clicks, you can activate COD and even add some details for your customers. By offering COD, you’re giving your customers more flexibility and potentially reaching a wider audience who prefers the security of cash on delivery. So, why wait? Let’s get started and make your checkout experience even more customer-friendly!

In this article, we will let you know about adding cash on delivery Shopify, the pros and cons of COD apps, and even more advanced cash on delivery app Shopify.

What is Cash on Delivery (COD)?

COD stands for Cash on Delivery or Pay on Delivery. It’s a payment method commonly used in e-commerce where customers pay for their purchases in cash upon receiving their order at their doorstep. With shopify pay on delivery, customers don’t have to make any upfront payment online; instead, they pay the delivery person directly when their package arrives.

This payment method is popular among consumers who prefer not to use credit or debit cards online or who may not have access to other forms of electronic payment. COD provides convenience and a sense of security as customers can inspect the product before making payment. If you don’t know what is Shopify and how it works, then you should know it first.

Advantages of Enabling Cash on Delivery in Shopify

Providing the Cash on Delivery (COD) option in your shopify store can be a very strategic move to uplift your sales and engage a wide range of audience. Here is the list of core benefits of enabling Cash on Delivery (COD) in Shopify.

Expand Your Customer Base: Reach customers who don’t have credit cards or prefer the security of cash transactions. This can be especially helpful in regions where COD is a popular payment method.

Increase Conversions: Some customers might hesitate to purchase online if they can’t pay with cash. COD removes that barrier, potentially leading to more completed sales.

Reduce Fraud Risk: Since cash is collected upon delivery, you eliminate the risk of chargebacks or fraudulent online transactions.

Boost Trust and Confidence: COD offers a sense of security for some customers who might be wary of online transactions. Seeing the product before paying can give them peace of mind.

Faster Impulse Buys: COD can streamline the checkout process for quick impulse purchases. Customers don’t need to enter credit card details, potentially leading to more spontaneous sales.

Disadvantages of Enabling Cash on Delivery in Shopify

While Cash on Delivery (COD) can be attractive to some customers, there are a few drawbacks to consider before enabling it in your Shopify store:

Increased Risk: Delivery drivers collect cash, which increases the risk of theft or loss compared to secure online transactions. Having to deal with this can put a strain on your company’s finances.

Cash Flow Delays: With COD, you don’t receive the payment until the order is delivered. This can delay your access to funds and hinder cash flow, especially for smaller businesses.

Return & Cancellation Issues: Customers choosing shopify pay on delivery might be more likely to cancel or refuse orders upon delivery, leading to return-to-origin (RTO) fees and wasted resources. This can be because they were just browsing, or because they found the item cheaper elsewhere.

Operational Complexity: Managing COD can involve extra work. You’ll need to partner with reliable courier services equipped for cash collection, which might incur additional fees. Reconciling the cash collected by drivers can also add complexity to your accounting.

Limited Customer Base: Not everyone prefers COD. By offering it as the only option, you might exclude customers who prefer the convenience and security of digital payments.

How to Enable COD in Shopify?

Enabling COD in Shopify is a fairly straightforward process. Here’s how to do it:

  • Log in to your Shopify admin panel.
  • Navigate to Settings > Payments.
  • Scroll down to the “Manual Payment Methods” section.
  • Click on the dropdown menu and select “Cash on Delivery (COD).

When you click on the COD, it opens a box for additional details and payment instructions. Briefly describe the COD process for your customers and explain how the customer will pay upon delivery Click “Activate Cash on Delivery” to enable cash on delivery shopify. After following these steps, the Cash on Delivery option will be available on your checkout page below for your customers.

Shopify’s built-in COD does not support advanced features like setting COD fees or limiting availability by zone. For more advanced functionalities, look into third-party COD apps available in the Shopify app store.

Advanced Cash On Delivery App Shopify

Although Shopify has in-built Cash On Delivery (COD) features still if you want to add more features with the COD option, shopify allows you to use third-party apps from their app store. By integrating the advanced COD apps, business owners can customize COD fees with more flexible options like partial COD payments or a percentage of the order total.

Even more, you can see multiple keys and metrics on COD performance. Using these reports and metrics you can optimize your COD operation. E-commerce business owners can maximize the potential of cash on delivery by using advanced COD apps that manage hassle-free cash payments.

Shopify Cash on Delivery Fee

After activating cash on delivery (COD) in Shopify, merchants can opt to apply a COD fee to customers. This fee can be set as a percentage of the order total or as a fixed amount. While these fees can help cover expenses related to handling cash, customer support, and managing additional workflows, business owners should not add very high amounts of shopify COD fees. High fees may discourage customers from selecting COD during checkout.

It’s wise to investigate the fee structures employed by competitors in your industry for COD and determine what customers consider reasonable. However, ensure that Shopify COD fees comply with local laws and regulations relevant to your business. When determining the right COD fee, it is important to strike a balance between operational costs and the convenience and attractiveness of cash payments.

Best Shopify Apps for Cash on Delivery

There are many Cash on Delivery (COD) apps available on the Shopify app store. But we are here to best shopify Cash-on-Delivery apps which are mentioned below:

1. Releasit COD Form & Upsells:

This is one of the popular COD apps in the Shopify app store. Using Releasit customers can easily place orders with Cash on Delivery in one click without going through complicated steps. With this app, you can create customer forms, and add upsells and quantity offers which helps you to boost the AOV. You can also track metrics in order to Increase conversions with Downsells.

Key Features of Releasit COD Form & Upsells:

One-Click COD: Customers can place Cash on Delivery orders with a single click, streamlining the checkout process.

Customizable Order Forms: Create forms that match your brand and style.

Popup & Embedded Forms: Choose between popup or embedded forms for optimal placement.

Upsells (Pre & Post-purchase): Strategically suggest additional products to increase customer spending.

Quantity Offers: Encourage customers to buy more with attractive bulk discounts.

Shipping Rate Options: Set up conditional shipping rates based on weight, order total, or other factors.

Discount Codes & Automatic Discounts: Offer promotions and discounts to incentivize purchases.

Abandoned Checkout Recovery: Capture lost sales by targeting customers who abandoned their carts.

Order Management & Tracking: Track key metrics to optimize your COD strategy. Import orders automatically to Google Sheets for easy data analysis.

Integrations: Supports major advertising platforms for automatic event tracking.

Mobile Optimization: Easy access on mobile devices.

Additional Support: RTL support. 24/7 customer support via email and WhatsApp.

2. CODFIRM COD Verification Suite:

To reduce the COD losses, CODfirm the one app you need. To decrease the RTO (Return to Origin) issues, you can verify your COD orders using CODfirm. It sends the OTP to the verified number of your customers and checks the intent to purchase. CODfirm has a Free plan available. For the pro plan, you need to pay $5/month.

If the customer’s contact information is incorrect, delivery drivers can’t reach them when out for delivery, so the orders will return as RTO. Each COD customer will be asked to confirm their order with an OTP (verification code) sent to their phone via SMS/WhatsApp. As well as verifying the customers’ contact information, this also confirms their intent to purchase. The app identifies the orders that have a high level of risk of RTO and validates the orders’ credibilities.

Key Features of CODFIRM COD Verification Suite:

  1. OTP Verification: Ensures authenticity by sending OTPs to confirm customers’ contact numbers and purchase intent.
  2. Risk Highlighting: Identifies orders with high RTO risk, allowing for proactive management.
  3. Smart Offers: Incentivizes customers to switch from COD to prepaid, reducing reliance on cash transactions.
  4. RTO Reduction: Drastically decreases losses associated with COD returns by verifying and confirming orders.
  5. Verify Order: Send order placed, shipping, out of delivery, and delivered done alert through Whatsapp.
  6. Enhanced Customer Experience: Provides a streamlined process for customers, boosting satisfaction and loyalty.

How does CODFIRM work?

1. After the customers place the order, they are redirected to the confirmation page where to you need to enter the OTP to confirm their orders

2. After the Confirmation or cancellation of the order, the customers are redirected to the order status page where they can track their orders.

3. Store owners can also track COD confirmation status directly from the “Orders” tab on their Shopify dashboard. They don’t need to navigate to another page for each order’s status.

4. If a customer opts to cancel an order, it’s promptly canceled, triggering an email notification to the customer, and restocking the items. This streamlined process reduces the probability of RTO occurrences by confirming both the customer’s contact number and their commitment to the COD purchase.

Conclusion

Integrating COD payment option in your Shopify store enhances customer convenience and trust, fostering increased sales and brand loyalty. This strategic move showcases our commitment to meeting diverse customer preferences and amplifies the appeal of our comprehensive Shopify solutions.

By offering COD alongside our promotion of Shopify services, as a Shopify development company,, we ensure seamless user experiences and empower merchants to optimize their e-commerce ventures. Embracing COD expands market reach and solidifies our position as a one-stop solution provider, driving sustained growth for both our clients and our platform.