What is COD (cash on delivery)?
Also known as: Cash on delivery, Pay on delivery
COD is a payment method where the customer pays in cash when the order is delivered, rather than online at checkout.
COD remains significant in India, particularly with first-time buyers and outside metros, because it removes the need to trust an unfamiliar seller with money upfront. It reliably increases conversion.
It also carries real costs: higher return-to-origin rates, cash handled by the courier and remitted later, and shipping paid in both directions when a parcel is refused. Many sellers offer a small prepaid discount to shift the balance.