Cash on delivery: Understanding and how to configure it in Magento 2

It’s no doubt that Cash on delivery has become one of the most popular payment methods not only in Magento but also in the e-commerce market. It assists the shoppers to pay for their orders by cash or card directly to the transporter/ courier person once receiving their products in hand.

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This second advanced version completely differentiates from its previous one. Thus, if you are using Claue version 1 and want to update to Claue version 2, you can only rebuild a new website no rather than updating from the old version. Now, let’s get to the main topic, shall we?

What is Cash On Delivery?

What is Cash On Delivery

Cash On Delivery is a method of transaction in which the shoppers makes payment to the shipping carrier when receiving the products. This COD is popular and convenient for purchasing who do not prefer online payment ways but still want to send products to a certain address. Magento assists you to accept COD payments for purchases. You can accept COD payment from only specific countries, and fine-tune the configuration with minimum and maximum order total limits.

The delivery carrier receives payment from the shoppers at the time of delivery, which is then transferred to you. You can make an adaptation for any fee charged by the carrier service in your delivery and handling charges.

Why businesses offer Cash On Delivery

There can be some circumstances in which COD can assist a business’ cash flow:

  • New businesses can benefit from proving COD if they are still becoming established. This method helps to show trustworthiness to the customer, assuring that their product will be fulfilled and only requesting payment at that time.
  • A customer base without credit cards or sufficient money in a bank account. In other words, if a customer has cash but not the ability to pay online, this method means they can still complete an order. It can also be effective for shoppers who might be mistrustful of online payments.

Pros and cons of COD

Depending on the business, COD might be a useful method of payment terms to provide. If you’re just getting your brand off the ground, there are absolutely some perks on the business side to proving COD. However, there can also be disadvantages to COD.

The Pros of offering COD

The primary advantage to a business when it offers COD is that the payment period is generally shorter than with an invoice supplying bank details for a transfer, for instance. Because the payment must be gathered when the products are delivered, this way can be effective for shoppers who have failed to pay or repeatedly have late payments.

Cash on delivery provides a better guarantee that the company will receive payment for the items and that means a more trustworthy cash flow which in turn makes it easier to budget.

The cons of accepting COD

While there seem to be a number of benefits of proving COD as a payment method, there are also some disadvantages. The bad one is the higher risk of the delivery refusal. Basically, because the shoppers do not pay for the products in advance, they can refuse the items and not provide payment.

There is no clear commitment to the shopper’s part to receive the delivery and make the payment, even if they have made the order. This can cause confusion with the sale and returned products

How to configure Cash on delivery in Magento 2

How to configure Cash on delivery in Magento 2
  • In Magento 2 admin, move to Stores -> Settings -> Configuration.
  • UnderSales, choose Payment Methods.

Configure Title & Order Status

You can see all the available payment methods. Extend the Cash On Delivery Payment tab to see the below options.

  • Enabled: Save to ‘Yes’ to active Cash On Delivery Payment method.
  • Title: This is what your clients see as the name for this payment method during the checkout process.
  • New Order Status: Save it to Pending until receipt of payment is confirmed.

Set Minimum & Maximum Order Total

The Minimum Order Total and Maximum Order Total assets you to create the order amounts that should qualify them to avail of the COD method.

  • Sort Order: Enter a number to decide the position of Cash On Delivery payment method with other payment methods during the checkout process. (0=first, 1=second, 2=third and so on).
  • Click Save Config to save the configurations.

If you have any problems in configuring Cash on Delivery Payment Method in Magento 2 you can contact our support team! We, Arrowhitech — a leading software outsourcing company, cover all the website development needs of online entrepreneurs. From prototyping to building to customization, you will get a high-performing, feature-packed, scalable, and secure eCommerce website.