In the previous article, we learned what the concept of COD shipping is and related issues. In this article we will continue to learn about the topic: What is COD fee - What is COD payment method and form?
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What is COD fee?
Similar to normal forms of delivery, COD shipping always consumes manpower, fuel and time. And the factors that will constitute the shipping fee. Along with shipping fees, many stores also charge another amount called COD fees. So what is the COD fee?
To put it simply, the COD fee is the amount of money the customer has to pay for collection. Thus, when completing an order in the form of COD delivery, the amount the customer must pay includes 3 factors:
- Goods money
- Shipping fee (COD shipping fee)
- Payment collection fee (cod fee)
Usually, the COD fee will not be too high and is included in the shipping fee or order value. In Vietnam, only postal companies, post offices or companies providing freight services list COD fees on receipts. As for small retail shops, clearly stating the COD fee is very limited. This is very easy to understand because this is a way to appeal to the customer's psychology. Normally, customers always feel uncomfortable when having to pay an additional fee.
What is COD payment method and form?
The nature of COD shipping is that the customer will pay after receiving the goods. Therefore, the method and form of COD payment also depends on this factor.
In the COD delivery process, the shiper will act as an intermediary, with the function of receiving money from customers and transferring money to the shop. Depending on the model and form of operation of each business unit, the COD payment process is also different. Here are some common forms:
In case the shipper is an official employee of the shop
In this case, the delivery person will bring the goods to the customer and then receive the full price + shipping fee then transfer it back to the shop. If the Shiper already has a monthly salary, the store will divide a certain percentage of money to the shipper depending on the agreement in the labor contract. If shipping income is based on orders, all shipping money will belong to the shiper.
In case the shop uses a free shipper
In this case, the shop will contact the shipper when there is an order. The shiper will pay the full amount of the order to the shop and proceed with delivery. When receiving the goods, Khanh will pay the full price + shipping fee (including COD fee) and end the transaction process. The advantage of this form of cash advance is that the shipper will not have to spend an extra round trip but can end the transaction as soon as the customer receives the goods.
In case the shop uses COD services of transportation companies
In this case, when there is an order, the store owner will book a Shiper from the transportation company. Shipper will take the following steps:
- Receive goods at the store
- Delivered directly to customers
- Receive payment from customers
- Transfer this amount back to the shop
- Receive payment from the shop and then transfer it back to the transportation company
Above is the information about what are the fees? What is COD payment form? that Proship has shared with customers. If you are in need of using the Ship Cod service, please contact us immediately via Hotline 0909 344 247 to enjoy attractive incentives from Proship. In addition to cod shipping services, Proship also provides services such as: Truck rental , car transportation , container transportation , express delivery, fast delivery,... With reasonable costs, reputation and quality. .
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