LogisticsCOD

Cash on Delivery (COD)

Quick answer

A payment method where the customer pays the courier at delivery, and the money is remitted to the merchant.

Key takeaways

Reconciling COD collected by the courier with orders
Higher return/refusal rate
Delayed remittance of money from the courier

What cash on delivery is

Cash on delivery (COD) is payment made at delivery, collected by the courier from the customer and then remitted to the merchant. Very common in e-commerce across Romania and CEE.

Why it matters to the board

COD raises conversion (customers without cards/trust) but increases delivery refusal rate, ties up cash until settlement and complicates financial reconciliation.

Challenges

Reconciling COD collected by the courier with orders

Higher return/refusal rate

Delayed remittance of money from the courier

How CRMconnect helps

CRMconnect links each order to its delivery status and the COD collected by the courier, automating COD reconciliation and highlighting refused orders needing reverse logistics.

Real-world example

An online store reconciled COD against courier statements manually, hours weekly. Automatic reconciliation in CRMconnect removed the manual work and surfaced delayed remittances.

Last updated: 2026-07-17

Frequently asked

Why is COD hard to manage?+

Because money passes through the courier and must be reconciled per order against their remittances, and the refusal rate is higher - needing reverse logistics.

Can I reduce COD dependence?+

Yes, by encouraging online payment (discounts, a B2B portal with account payment), but COD stays important in certain segments.

Where CRMconnect fits

Software OMS Conectori ERP Marketplace Connector

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Related terms

Logistics