Cash on Delivery

Cash on Delivery (COD) allows customers to pay for their orders when they receive them. The delivery courier collects payment from the customer and deposits the funds into your bank account.

Overview

Cash on Delivery provides:

• Lower barrier to purchase for customers
• No upfront payment required
• Higher conversion rates, especially for new customers
• Trust-building for first-time buyers

Trade-offs to consider:

• Higher return rates (customer may refuse delivery)
• Delayed payment (funds arrive after delivery)
• Additional handling fees from couriers
• Cannot be used for digital products

Prerequisites

Before enabling COD:

• A configured shipping method with courier integration
• A bank account to receive COD payments
• Understanding of courier COD fees

Configuration Steps

Step 1: Enable COD Payment Method

1. Log in to your Mozhe dashboard
2. Navigate to your site settings
3. Go to Settings > Shop > Payments
4. Enable Cash on Delivery
5. Click Save

Step 2: Configure Bank Account

COD payments are deposited to your bank account by the courier. To configure:

1. Go to Organization Settings > Payments
2. Enter your Cash Bank Account number
3. This account will receive all COD payments from couriers

Format: Serbian bank account format (e.g., 160-0000000000000-00)

Step 3: Set COD Fee (Optional)

You can charge customers an additional fee for COD orders to cover handling costs:

1. Go to Settings > Shop > Payments
2. Set the COD Fee amount (typically 150-250 RSD)
3. This fee is added to the order total at checkout

The COD fee appears on the order summary as "Payment Fee" or "Handling Fee".

Customer Experience

At Checkout

When a customer selects Cash on Delivery:

1. Order total shows the COD fee (if configured)
2. Customer confirms the order
3. Order is created with "Created" status
4. Customer receives order confirmation email

At Delivery

When the courier delivers the order:

1. Courier collects the total order amount from customer
2. Customer can pay with cash or sometimes card
3. Customer receives their package
4. Order status updates to "Fulfilled"

Payment Settlement

The courier deposits collected payments:

1. Courier aggregates daily COD collections
2. Funds are transferred to your configured bank account
3. Bank reference includes order/shipment information
4. Settlement timing depends on courier (typically 1-5 business days)

Payment Facilitators

Mozhe supports different payment facilitators for COD:

Standard Courier Settlement

By default, couriers deposit COD payments directly to your bank account:

• BEX: Deposits via bank transfer with order reference
• DExpress: Deposits via bank transfer with order reference
• GLS: Deposits via bank transfer with order reference

COD Order Workflow

Order Creation

1. Customer places order with COD
2. Order created with status "Created"
3. Payment method recorded as "CASH"
4. Bank account stored in order metadata

Order Preparation

1. Staff prepares the order
2. Order status changes to "Prepared"
3. Shipping label generated with COD amount

Order Shipment

1. Courier picks up the package
2. COD amount is marked on the shipping manifest
3. Order status changes to "Shipped"
4. Customer receives tracking information

Delivery and Payment

1. Courier attempts delivery
2. Customer pays the total amount
3. Courier marks package as delivered
4. Order status updates to "Fulfilled"

Payment Settlement

1. Courier settles COD at end of day
2. Bank transfer initiated to your account
3. Funds arrive in 1-5 business days

Handling COD Orders

Viewing COD Orders

To filter COD orders in the dashboard:

1. Go to Orders
2. Use the filter Payment Method = CASH
3. View all COD orders

Checking Payment Status

For COD orders:

• Created: Order placed, awaiting preparation
• Prepared: Ready for courier pickup
• Shipped: With courier for delivery
• Fulfilled: Delivered and payment collected
• Returned: Customer refused delivery

Refused Deliveries

When a customer refuses a COD delivery:

1. Courier returns package to pickup location
2. Order status changes to "Returned" or "Failed"
3. No payment is collected
4. You may incur return shipping fees

Courier-Specific COD Configuration

BEX

BEX COD configuration:

• Bank account: Your Serbian bank account
• Payment reference: Order number
• Settlement: 1-2 business days
• Max COD amount: Subject to BEX limits

DExpress

DExpress COD configuration:

• Bank account: Your Serbian bank account
• Payment reference: Order number with prefix
• Settlement: 1-3 business days
• Amount format: Uses "para" (multiply by 100)

GLS

GLS COD configuration:

• Bank account: Configured per merchant
• Payment reference: Client reference
• Settlement: 2-5 business days

COD Fees and Pricing

Courier COD Fees

Couriers typically charge a handling fee for COD:

These fees are charged to you, not the customer.

Customer COD Fee

You can pass COD costs to customers:

1. Configure a COD fee in payment settings
2. Fee is added to order total at checkout
3. Customer sees total including the fee
4. Fee appears on invoice as separate line item

Recommended approach: Set COD fee to cover your courier costs plus a small buffer for returns.

Best Practices

Reducing COD Returns

To minimize refused deliveries:

1. Send order confirmation emails immediately
2. Send SMS before delivery with order details
3. Allow customers to reschedule delivery
4. Provide accurate delivery time estimates
5. Call to confirm for high-value orders

COD Limits

Consider setting limits on COD:

• Maximum order value for COD
• Require card payment for orders above threshold
• Block COD for certain product categories

Customer Communication

Keep customers informed:

• Clear COD fee display at checkout
• Delivery tracking information
• Pre-delivery notification
• Payment receipt after delivery

Troubleshooting

Common Issues

"Bank account not configured"

• Go to Organization Settings > Payments
• Enter your Cash Bank Account number
• Ensure the format is correct

"COD payment not received"

• Check courier settlement schedule
• Verify bank account number is correct
• Contact courier for payment status
• Check payment reference matches order

"Customer refused delivery"

• Contact customer to understand the issue
• Offer to reship or cancel the order
• Update order status appropriately
• Handle return shipping costs

"COD amount incorrect"

• Verify order total calculation
• Check if COD fee is included
• Ensure no discounts were missed
• Contact courier if label amount is wrong

Reconciliation

To reconcile COD payments:

1. Export orders with COD payment method
2. Match against bank statements
3. Verify using order numbers in references
4. Flag any missing payments for follow-up

Security Considerations

• Only use verified bank accounts
• Review large COD orders before shipping
• Monitor for suspicious order patterns
• Verify customer contact information
• Consider requiring phone verification for new customers

Next Steps

• Set up shipping methods with courier integration
• Configure card payments for customers who prefer card payment
• Set up courier integrations for COD support