Recently, the purchase of goods via the Internet is becoming more and more popular. Naturally, it is fraught with some risks, because the buyer and the seller do not know each other, they don’t even see each other! Various methods of payment and delivery of goods make it possible to secure one or both counterparties. Today we’ll talk about such a method of payment as cash on delivery. This payment method is profitable and safe enough for both the seller and buyers.
What is cash on delivery? This is the payment by the buyer of the goods only after he has been delivered to his city at the courier service warehouse or at the post office. Moreover, the buyer has the right to refuse to receive the delivered goods and not to pay for them. On the one hand, it might seem that in this case sending goods by cash on delivery is unprofitable and dangerous for the seller, but this is not so. After all, the seller will receive his goods back, and his losses will be reduced only to payment for courier services. On the other hand, the buyer can be sure that he will receive the goods in the proper quality and configuration, since he will have the opportunity to check his condition before paying the cost of purchase and delivery.
Thus, in a transaction such as cash on delivery, two counterparties (buyer and seller) and one intermediary - the courier service, participate. The scheme of the transaction is as follows: the buyer and seller agree in advance on the purchase item, its price, packaging and condition and agree to make cash on delivery. After that, the seller transfers the goods and the recipient's coordinates to the courier service. In this case, in return for the goods, he receives a declaration, the number of which is reported to the buyer. This declaration serves as evidence that the courier has indeed accepted the goods and is obligated to deliver it to the buyer in proper condition on time (in foreign practice, the term AGO is used - obvious good order - obvious good condition). After the delivery has been completed, the buyer comes to the intermediary and informs him of the invoice number, according to which he should receive the goods, while presenting documents proving his identity. After receiving the goods and checking the completeness and condition of the cargo, he agrees or refuses to pay for the goods. Depending on his decision, the courier sends the seller either money or the returned goods.
The use of such a means of payment as cash on delivery has both positive and negative sides. Positive, of course, can be attributed to a higher reliability of the transaction for the buyer, because he can make sure that the product meets his requirements before paying for it. The seller is also protected, because he does not need to rely on the honesty of the buyer as it has to be done with the “payment after delivery” method, and even if the buyer refuses the goods, he will only have to pay for transporting the goods to and from the destination.
However, you have to pay for everything. Cash on delivery is less effective than other methods of payment, in terms of the cost of financial resources: the participation of the courier, who acts as a mutual guarantor for the seller and the buyer, and delivers, requires additional costs. However, taking into account the fact that the cost of courier services for the delivery of expensive goods may not reach even one percent of the transaction amount (say, when buying and selling expensive SLR cameras), these costs are definitely worth the cost for the safety and tranquility of both counterparties. The main thing is to find a reliable courier with a good reputation, which both parties will trust.