Cash on Delivery (COD) refers to a settlement method where the buyer pays for the goods only when the seller delivers them. In international trade, COD is typically used for small transactions, sample orders, or between long-term customers with high trust, because the seller bears the risk of the buyer refusing the goods or delaying payment, and the logistics provider often needs to collect payment on behalf of the seller and charges a service fee. Use cases include: cross-border e-commerce B2C small parcels, air express, and balance payment under certain DDP terms. Precautions: 1) The seller should confirm whether the logistics provider supports COD and the collection fee; 2) The responsibility for freight and goods handling after refusal must be clarified; 3) COD is the opposite of advance payment, and also different from open account, which is deferred payment after delivery, whereas COD is immediate payment upon delivery. In addition, COD is not suitable for large transactions or customers with unclear credit; it is recommended to use it in combination with credit insurance or a prepayment ratio.
📝 Examples
1. For small orders from new customers, we agree to use Cash on Delivery, but the logistics collection fee is borne by the buyer. (Note: The seller accepts COD but shifts the extra cost.)
2. Due to your multiple late payments in the past, for this order we can only accept a 30% advance deposit, with the balance on Cash on Delivery. (Note: COD is used as a risk control measure for part of the balance.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner