Cash on delivery
Paying only when the parcel arrives
Cash on delivery is a payment method where the customer pays only when taking delivery, either to the courier or at a pickup point. The merchant receives the money later, once the carrier remits it, and carries the risk that the customer never collects the parcel.
Why it persists in this region
Cash on delivery holds a far larger share in Czechia and Slovakia than in Western Europe, and the reason is historical rather than technical. It grew up when card payment online was uncommon and buying over the internet felt risky. The customer is not buying convenience with it, but certainty — they pay once the parcel is in their hands.
That shapes how it can be replaced. Removing it from the cart is not enough. If a customer does not know the brand and cannot tell whether the goods will arrive, taking the option away does not speed the purchase up; it simply prevents it. What replaces it is trust: ratings, clear return terms, and visible contact details.
What it costs the merchant
The carrier's fee is the most visible line, but rarely the most expensive one. The larger costs hide in cash flow and in uncollected parcels.
- Money lands only after the carrier remits it, not on the order date.
- An uncollected parcel costs shipping both ways and returns stock to the warehouse.
- Payment reconciliation is harder, because remittances arrive in batches.
- Cash-on-delivery orders are cancelled more often, distorting stock planning.
Reducing its share without losing orders
What works best is making prepayment visibly better rather than making cash on delivery unavailable. Cheaper shipping when paying up front, faster dispatch, or the order of payment methods in the cart all shift the mix without scaring off an uncertain buyer.
The second layer is trust: visible ratings, accurate availability, and a clear right of withdrawal. Once a customer knows they can return goods without a fight, they stop needing the safety net. Setting payment rules by order value, customer history, or region is a routine part of a custom e-shop.
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Explore custom e-shopsFrequently asked questions
Should I remove cash on delivery entirely?
In most cases no. On the Czech and Slovak markets a meaningful share of customers will not buy without it. It is wiser to favour prepayment and restrict the option where risk is highest, such as expensive orders or customers who have failed to collect before.
Why is it more expensive than card payment?
Beyond the carrier's fee the merchant carries tied-up cash flow and the cost of uncollected parcels. A card payment settles quickly and the order is paid before dispatch, so the risk is far lower.
How do I handle repeat non-collection?
Confirming higher-value orders by phone or SMS helps, as does a rule that offers only prepayment to customers with a history of non-collection. Both can run automatically so support does not handle them by hand.