Cash on delivery - what is it?

Lately buying products online is becoming more and more popular.Naturally, it is fraught with some risk because the buyer and seller that do not know each other - they are not even seen!Different ways of payment and delivery enable secure one or both counterparties.Today let's talk about this method of payment is cash on delivery.This payment method is safe and beneficial for both the seller and buyers.

What is cash?This payment is the purchaser of goods only after he was taken to his city in stock courier service or the post office.The purchaser has the right to refuse to receive the delivered goods without paying for them.On the one hand, it may seem that in this case, send the goods on delivery unprofitable and dangerous for the seller, but it is not.After all, the seller will get his goods back, and his loss will be reduced to only pay for the courier service.On the other hand, the buyer can be sure that he will receive the goods in good quality and complete, because he will be able to check its status before paying the purchase price and delivery.

Thus, in such a transaction as cash on delivery, participate two counterparty (buyer and seller), and one mediator - courier service.Driving the deal is this: the buyer and seller to specify in advance the purchase of the object, its price, packaging and condition, and agree to pay cash on delivery.After that, the seller sends the goods and the recipient's messenger service.At the same time it receives in exchange the goods declaration, the number reported by the buyer.This declaration serves as evidence that the courier actually received the goods and is obliged to deliver the agreed time to the buyer in good condition (in foreign practice, the term is used AGO - apparent good order - apparent good condition).Once the delivery is, the buyer comes to the mediator and tells him the invoice number, under which he has to get the goods, while presenting the documents proving his identity.After receiving the goods and checking for completeness and condition of the cargo, he agrees or refuses to pay for the goods.Depending on his decision to send the seller a courier money or returned goods.

use of such means of payment like cash on delivery, has both positive and negative sides.On the positive side, you can certainly include greater reliability of the transaction for the buyer, because he can make sure that the product meets his needs before pay it.The seller is also protected because it does not need to rely on the honesty buyer as it has to do with the method of "payment after delivery", and even in the event of failure by the buyer of goods he will only have to pay for the transportation of goods to the destination and back.

But should pay for everything.COD is less effective than other methods of payment, the cost of financial resources: Participation carrier that serves mutual guarantees for the seller and the buyer, and delivers, requires additional costs money.However, taking into account the fact that the cost of courier delivery of luxury goods may not reach one percent of the transaction amount (for example, the sale of expensive SLR cameras), these costs should clearly realize the sake of security and tranquility of both counterparties.The main thing - to find a reliable and reputable courier, who will trust on both sides.