---
title: What is cash on delivery (COD)? Meaning & examples
description: Cash on delivery (COD) means the customer pays when the parcel
  arrives, not when ordering. Learn why it leads chat selling in Bangladesh and
  how to cut risk.
url: https://salemag.net/glossary/cash-on-delivery
language: en
published: 2026-10-21
updated: 2026-10-21
author: SaleMag Team
tags:
  - cash on delivery
  - cod
  - f-commerce
---

# What is cash on delivery (COD)? Meaning & examples

> Cash on delivery (COD) is a payment method where the customer pays the courier or delivery person in cash, or sometimes by mobile wallet, when the order arrives, instead of paying online when ordering. It builds trust for buyers but leaves the seller exposed to refusals and returns.

## What is cash on delivery?

**Cash on delivery (COD)** means the customer orders now and pays later, at the door. The courier collects the product price plus any delivery charge, then sends the money back to the seller after deducting its fees. Some couriers also accept mobile-wallet payment at delivery.

For the buyer, COD removes the fear of paying for something that never arrives. For the seller, it means stock and delivery cost are at risk until the customer actually pays.

## Why does it matter for sellers in Bangladesh?

COD is the default for f-commerce in Bangladesh. Pages that refuse it usually lose customers to pages that offer it. The cost shows up elsewhere:

- **Refused parcels.** The customer changes their mind or is unreachable, and the parcel becomes a [return to origin](https://salemag.net/glossary/return-to-origin).
- **Fake or careless orders.** Wrong numbers and incomplete addresses waste courier trips.
- **Cash-flow delay.** Money arrives only after delivery and courier settlement.

The practical defence is a confirmed, complete order: a clear summary with the total, the right phone number and a full address, then a reminder before delivery.

## Example

A customer orders two kurtis in chat. The shop confirms the order with a summary: items, delivery charge for Outside Dhaka, total to pay on delivery. The courier collects the total at the door, and the shop receives the payment at the courier's next settlement.

SaleMag's [AI order taking](https://salemag.net/features/ai-order-taking) places chat orders as cash on delivery, adding the delivery fee for the area the customer picks, and you can follow up with [COD order confirmation](https://salemag.net/solutions/cod-order-confirmation).

## Related terms

Return to origin, f-commerce, utility message, WhatsApp Flows.

## FAQ

### Why do so many customers in Bangladesh prefer COD?

It lets them see the product before paying and avoids the risk of paying a page they do not know. Many buyers simply trust it more than paying in advance.

### How can I reduce fake or refused COD orders?

Confirm each order by message or call before shipping, collect complete addresses, send a reminder on delivery day, and consider a small advance for high-value or far-away orders.

### Who pays the delivery charge on a COD order?

That is the seller's choice. Many shops add the delivery charge to the amount the courier collects, with different charges inside and outside Dhaka.