Cash on Delivery (COD) is one of the most popular payment options in Indian ecommerce. For many customers, COD builds trust — especially when buying from new or small online stores.

But for sellers, COD works very differently from prepaid orders.

This guide explains how COD works for online sellers in India, the process behind it, common challenges, and how to manage COD successfully.

What Is Cash on Delivery (COD)?

Cash on Delivery means:

Customers place an order online
Payment is collected only after delivery
Courier partner collects cash or digital payment
Seller receives settlement after delivery confirmation

COD reduces buyer hesitation but shifts risk to the seller.

Step-by-Step: How COD Works for Sellers

Customer Places COD Order

Customer:

Selects product
Chooses COD at checkout
Confirms order

The order appears in your ecommerce dashboard.

Seller Processes the Order

Seller:

Confirms product availability
Prepares the shipment
Generates invoice

Using a platform like Bechna, this happens from one dashboard.

Courier Picks Up the Order

Courier partner:

Collects parcel
Delivers to customer
Collects payment (cash or UPI at doorstep)

Payment Collection & Settlement

After delivery:

Courier confirms payment
Amount is transferred to seller
Settlement timeline depends on courier/payment setup

This is slower than prepaid orders.

Why Customers Prefer COD in India

Customers choose COD because:

No advance payment
Trust in delivery before payment
Easier for first-time buyers
Suitable for non-card users

COD helps sellers convert hesitant customers.

Challenges of COD for Sellers

COD also comes with risks:

Higher return-to-origin (RTO) rates
Delayed cash flow
Fake or unconfirmed orders
Extra logistics cost

That’s why COD needs smart management.

How to Reduce COD Risks

Successful sellers follow these practices:

Confirm COD orders via WhatsApp or call
Offer prepaid discounts
Limit COD for high-value items
Track inventory carefully
Use reliable ecommerce platforms

Bechna helps manage COD orders easily.

COD vs Prepaid: Seller’s Perspective

Factor	COD	Prepaid
Trust	High	Medium
Payment Speed	Slow	Instant
Risk	Higher	Lower
RTO	Higher	Low

Best approach: Offer both, guide customers toward prepaid.

Using COD with Modern Ecommerce Platforms

Modern platforms like Bechna allow:

Easy COD enable/disable
Combined COD + UPI checkout
Mobile-first order management
Automated invoicing
Better visibility on order status

This reduces COD headaches.

Is COD Still Worth It in 2025?

Yes — especially for:

New sellers
Local Indian brands
Tier 2 & Tier 3 markets
Social commerce sellers

COD remains a powerful trust-building tool.

Why Bechna Works Well for COD Sellers

Bechna is designed around Indian selling habits.

You get:

Simple COD setup
Mobile-first order management
Zero platform commission
GST-ready invoices
Smooth checkout for customers

How COD Works for Online Sellers in India (Complete Guide)