How Cash on Delivery (COD) Payment Method Works and How to Enable it on Your Online Store (2022)

Cash on Delivery (COD) is one of the preferred payment methods of Malaysian buyers. This post will explain how it works and how you can enable it in your online store.

How Cash on Delivery (COD) works

Customers pay for their order only when they receive their items. Payment is usually in cash, but can also be by credit card or e-wallets.

Payments for orders paid with COD is usually collected by the courier companies that are delivering the items.

Customers typically choose this payment method when they don’t have a way to pay online, or if they don’t want to.

Pros of offering COD payment method

When you offer COD as a payment method, you can reach customers that would have otherwise not bought, increasing sales to your store.

Cons of offering COD payment method

The biggest con of offering COD as a payment method is the risk of customers deciding not to pay when their order arrives at their doorstep. The courier company will still charge you a fee for the delivery and you will incur a loss.

Cost of Cash on Delivery (COD)

The courier company delivering the item and collecting payment on your behalf will charge you a fee for orders delivered with COD.

This is either a fixed fee, or a percentage of the item value.

Courier companies offering COD

Not all courier companies in Malaysia offer COD. Here are a few that do:

  • NinjaVan
  • J&T Express
  • DHL eCommerce
  • Flash Express

How to enable COD in your store

It depends on the eCommerce platform you are using. Here are some guides that may be useful.

How to Enable Cash on Delivery (COD) on your Shopify Store in Malaysia (2022)

Do you need help enabling COD in your online store?

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