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Glossary

What is Cash on delivery (COD)?

Cash on delivery (COD) is a payment method where the buyer pays in cash when the parcel arrives, not when ordering online. The courier collects the money and passes it to the seller later, minus its charges.

Why COD matters in Pakistan

The US International Trade Administration cites industry reports that 95 percent of ecommerce companies in Pakistan receive payment for online orders by cash on delivery (trade.gov). Buyers trust it because they see the product before paying. Sellers carry the cost.

How a COD order flows

  1. The buyer orders online and chooses COD.
  2. The seller books a courier that offers COD collection.
  3. The courier delivers and collects the cash.
  4. The courier pays the seller, minus delivery and collection charges, on its settlement cycle.

The catch: refused parcels

With COD, a buyer can refuse the parcel at the door. The seller then pays shipping both ways and waits for the stock to come back. Sellers reduce this by confirming each order on WhatsApp or by phone, showing honest photos and sizes, and offering a small discount for paying upfront through JazzCash, Easypaisa or a bank transfer. Track refusals by city and by courier, so you know where COD costs you most.

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