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How to Send Cash on Delivery (COD) Shipments? Terms and Fees
Cash on delivery (COD) is when the payment for the product you sell is collected from the customer at the time of delivery. The courier company transfers this money to you according to their service terms. When creating a shipment, you specify the recipient information and the amount to be collected. This service is not the same as just having the recipient pay for the shipping cost.
How to Send a Cash on Delivery Shipment?
To send a cash on delivery shipment, first choose a courier company or shipping platform that offers this service. Then, check your account's eligibility for this service. Do not just enable the payment option on your website. Make sure to specify that the product price will be collected upon delivery when creating the shipping record as well.
You can complete the shipping process in the following order:
Learn about the application requirements, payment methods, and when the money will be transferred to your account.
Prepare the required documents and the bank account details where you will receive the payments.
Enter the recipient details, package dimensions, and the amount to be collected.
Prepare the package and deliver it to the courier company.
Track the delivery status of the shipment and then the transfer of funds.
To easily integrate these steps into your daily business, you can also review our Shipping Management Guide for E-Commerce content.
Terms and Required Documents for Cash on Delivery Shipping
The required documents vary depending on the courier company. During the application process, identity or business details, the bank account for payments, and certain contracts may be requested.
For example, the Aras Collect-on-Delivery service is offered to contracted customers with a commercial title. Therefore, the answer to the question "Can I send cash on delivery shipments without a company?" is not the same for every courier company.
One should also not confuse a sole proprietorship with an individual sender. If you are just starting out with sales, include the necessary documents and shipping expenses in your business plan.
Creating a Shipment with Recipient Details and Collection Amount
When creating a shipment record, the recipient's name, phone number, full address, package details, and the amount to be collected must be entered accurately.
Be sure to compare the total amount the customer will pay with the amount in the shipping record. For example, if only 1,000 TL for the product will be collected from the customer, 1,000 TL must be entered in the collection field.
Then prepare the invoice, pack the product appropriately, and attach the shipping label.
If you are selling through channels like Instagram, re-confirming the customer's address and the payment amount before shipping reduces the risk of errors.
Handover to Courier, Shipment Tracking, and Informing the Customer
After handing over the package to the courier, save the tracking number and share it with your customer.
It is beneficial to provide the customer with the following information in advance:
Total amount to be paid
Cash or card options
Shipment tracking number
Estimated delivery details
Do not tell the customer they can pay by card unless the credit card payment option has been definitely verified.
Tip: Share payment details in advance.
Inform the customer of the total payment amount and the payment method before creating the shipment.
Cash on Delivery Shipping Fees and Commissions
When calculating the total cost of cash on delivery shipping, do not look only at the transportation fee. An additional service fee or commission may apply for collecting the product price from the customer.
Sharing the following details together when getting a quote will yield more accurate results:
Package dimensions
Package weight
Monthly shipment volume
Product value to be collected
Delivery region
Also, check whether the price includes VAT.
Find out the additional cost that might occur if an undelivered package is returned to you. Calculating delivered and returned orders separately makes it easier to see your actual shipping costs.
The Difference Between Product Price, Shipping Fee, and Collection Service Fee
The product price is the cost of the item you are selling.
The shipping fee is the amount paid to transport the package from one point to another.
The collection service fee is the extra charge that may be applied to collect the product price from the customer and transfer it to you.
It is necessary to distinguish these three items from each other.
Cash on delivery (COD) and receiver-paid shipping are also not the same thing.
In receiver-paid shipping, the recipient only pays the transportation fee. This process does not mean that the product value is collected from the customer.
Fee Item | What Is It For? | Where Is It Checked? |
Product price | The price of the product sold to the customer. | Order record and invoice |
Shipping fee | Charged for transporting the package. | Shipping tariff or quote |
Collection service fee | Applied for collecting the product price from the customer. | Terms of service |
Return fee | Can be charged for transporting an undelivered package back. | Return conditions |
Cost Calculation in Delivered and Returned Orders
When using cash on delivery, calculating only the cost of successful orders is not enough. You must also factor in the cost of uncollected orders.
For example, let's make a completely illustrative calculation.
For one order:
Product price: 1,000 TL
Outbound shipping fee: 100 TL
Collection service fee: 25 TL
If the order is delivered, the total shipping and collection cost is 125 TL.
In this case, subtracting 125 TL from the 1,000 TL product price leaves 875 TL. However, 875 TL is not direct profit. Product cost, packaging, and other operating expenses have not been deducted from the calculation yet.
If the order is not accepted, the product price is not collected from the customer. Assuming 100 TL is also paid for the return of the package, the total transportation cost can be 200 TL.
Scenario | Outbound Fee | Collection Fee | Return Fee | Total Expense |
Order delivered | 100 TL | 25 TL | 0 TL | 125 TL |
Order not accepted | 100 TL | 0 TL | 100 TL | 200 TL |
These numbers are examples only and do not represent current shipping rates.
Tip: Compare total cost, not the list price.
Look at the collection and potential return expenses along with the shipping price.
Which Courier Companies Offer Cash on Delivery Services?
Different courier companies in Turkey can offer cash on delivery or payment collection services. PTT, Aras Kargo, and DHL eCommerce are examples of these.
However, each company's service name, application requirements, payment methods, and money transfer processes may differ.
Therefore, asking only "Is there a cash on delivery service?" is not enough.
You should also find out:
What are the application requirements?
Can cash payments be received?
Are credit cards accepted?
Which account is the money transferred to?
Is there an additional fee for collection?
What fee is applied for undelivered shipments?
Company | Service | Application Condition | Cash / Card | Money Transfer |
PTT | Payment-conditioned shipment | Invoice requirement may apply. | Must be checked according to the service. | Money transfer or postal checking account |
Aras Kargo | Aras Collect-on-Delivery | Commercial title and contract | Cash and credit card | Bank account |
DHL eCommerce | Collection shipment | Contracted customer | May vary according to contract. | Designated account |
How to Send PTT Cash on Delivery Shipments?
In PTT, the cash on delivery transaction is carried out through the "payment-conditioned shipment" service.
When creating a shipment, the recipient's details and the amount to be collected are specified. An invoice or waybill invoice belonging to the product may need to be provided with the shipment.
The amount to be collected must not be higher than the amount on the invoice.
The money collected from the customer can be transferred to the sender via wire transfer or postal checking account, depending on the terms of the service used.
If you are creating a PTT shipment through an intermediary platform, you should also check the platform's own application and money transfer terms separately.
Cash, Card, and Contract Terms in Courier Companies
The availability of cash on delivery service does not necessarily mean that the option to pay by credit card is also available.
For example, Aras Collect-on-Delivery service may have options for payment by cash and credit card. However, you should not assume that the same options apply with another courier company.
Verify the following details before shipping:
Is cash payment accepted?
Are credit cards accepted?
Is there an upper limit for collection?
Is there a commission or extra service fee?
Is a contract required?
Tip: Always verify card support.
Check your selected service before promising card payment to the customer.
How to Manage Cash on Delivery Collections and Returns?
In cash on delivery shipments, tracking only the delivery of the package is not enough. You also need to verify whether the collected money has reached your account.
You can track the following details for each order:
Shipment number
Product price
Delivery date
Collected amount
Deduction made
Money received in account
Money transfer date
The delivery of the package to the customer and the transfer of the money to your account are not the same transaction.
It is also helpful to record the reasons for undelivered packages separately. Address errors, the customer not being at the address, or refusing the product are different issues.
When Does the Cash on Delivery Money Go into the Account?
The time it takes for cash on delivery money to reach your account varies depending on the courier company or service you use.
Therefore, it is not correct to state a single rule like "money is deposited the next day" for all companies.
Check the answers to the following questions in the contract or service terms:
How many days after delivery is the money transferred?
Is the duration calculated in business days?
When is the commission deducted?
Where can the net amount transferred to the bank account be tracked?
For example, if 1,000 TL was collected from the customer and 25 TL was deducted for the collection service, it is expected that 975 TL will be transferred to the account.
However, do not calculate the shipping fee you paid earlier as a deduction for a second time.
Information | What to Record? |
Shipment number | Tracking number matching the order |
Delivery date | The day the package was delivered to the customer |
Collected amount | Money received from the customer |
Deduction | Service fee deducted from the collection |
Transferred amount | Net money credited to your account |
Transfer date | The day the money was credited to your account |
Tip: Track delivery and money transfer separately.
Even if the package is delivered, do not stop checking until the money is in your account.
What Happens If the Customer Does Not Accept the Cash on Delivery Shipment?
If the customer does not accept the cash on delivery shipment, the product price is not collected.
The process after this point may vary depending on the terms of the courier company.
Depending on the situation:
If the customer is not at the address, a redelivery option can be evaluated.
If the customer rejects the product, the package can be sent back.
If a return is requested after the product is received, the normal return process is applied.
You should also check the return fee that might occur in these cases.
It is useful to record the reasons for undelivered orders separately. This way, you can notice frequently encountered issues.
For example, do not evaluate shipments returned due to an incorrect address in the same group as those returned because the customer did not want the product.
Tip: Record the reason for every return.
Track address errors and customer rejections separately to identify recurring issues.
Manage Your Cash on Delivery Shipments with Navlungo Domestic
When creating a cash on delivery shipment through Navlungo Domestic, you must enter the recipient's details, package details, and the amount to be collected.
In order to use the cash on delivery service, your account must be enabled for this service and the courier company you select must support the cash on delivery option.
If the option does not appear on your account, you can contact the Navlungo team.
Before your first shipment, find out the collection fee, the upper amount limit if any, and when the money will be transferred to your account.
Create your shipment after informing the customer of the total payment amount. Track the delivery status and the money transferred to your account separately.
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Frequently Asked Questions About Cash on Delivery Shipping
Can a cash on delivery package be opened before payment is made?
Not always. The conditions for opening the package vary depending on the courier company.
Can a cash on delivery shipment be picked up from the branch?
If the service is suitable, yes. Check the branch pickup option during shipping.
Is there an upper limit for cash on delivery shipments?
Yes, there can be. The upper limit varies depending on the courier company and service used.
Can a cash on delivery PTT shipment be picked up from Kargomat?
No. Payment-conditioned shipments cannot be delivered through Kargomat.
Can cash on delivery shipments be sent abroad?
It is possible in some countries and services. Country and carrier terms should be checked before shipping.
