Cash-On-Delivery Can Make Logistics Tricky. Here’s How to Get it Right.

Cash on Delivery (COD) might sound like a relic from the early days of online shopping, but in 2025, it remains a critical payment method across many regions. Especially in emerging markets where online trust and banking access are still developing, offering COD can dramatically boost your conversion rates and reduce cart abandonment.

At Wayfindr (formerly CBIP Logistics), we’ve recently expanded our own cash-on-delivery service across Europe, and we’re seeing firsthand how COD is evolving — not fading — in the post-pandemic e-commerce era.

In this article, we’ll explore:

• Why COD is still relevant in 2025
• Which global markets still rely on COD
• What brands can gain from offering COD
• How to set up your cash-on-delivery network efficiently
• How a 4PL can help streamline the COD process

Explore more: Wayfindr’s E-commerce Logistics Services

Never used it? Here’s who DOES

While digital wallets, instant bank transfers, and BNPL (Buy Now, Pay Later) options dominate developed markets, COD remains king in many fast-growing regions. According to a 2025 report by Statista, over 60% of online shoppers in India, Africa, and parts of Southeast Asia still prefer COD as their primary payment method.

Why?

• Low credit card penetration
• Distrust in digital payment systems
• A desire to inspect goods before payment
• Unbanked population segments

In India alone, over 68% of e-commerce orders in rural areas were still paid via COD in early 2025.

Markets where it’s popular

In general, markets that can be categorized as “developing” have much higher instances of COD payment use. This is often due to the fact that many shoppers in these markets do not have a debit or credit card and those who do not trust the security of online banking.

In markets like these, you would be a fool not to offer COD. Of course, it’s also easier to set up COD in markets where it is prevalent, seeing as there are many couriers who offer COD as a service.

Throughout Africa and various countries in Latin America, Asia, and the Middle East, COD is still king. If you are entering a new market, it pays to do the research to see how the local customers like to pay.

Couriers that offer COD services can range from huge international players like DHL, all the way down to small regional carriers.

Related: Building the Right Return Policy For Your Brand

Region	COD Usage Trend (2025)
India	68% of rural e-commerce orders
Southeast Asia	Up to 55% in Indonesia, Vietnam
Middle East	60%+ in Saudi Arabia, UAE
Africa	65%+ in Kenya, Nigeria
Latin America	Growing in Mexico, Peru
Eastern Europe	Stable usage in Romania, Ukraine

A couple of tips on getting it right

It seems simple and old-fashioned, but it can be tough to achieve at scale efficiently. Fulfillment logistics is complicated, and managing payment transactions during delivery requires additional time and resources.

The last mile of fulfillment is already pretty inefficient, so if you add COD in, it gets even more crucial to optimize that product as much as possible.

How does it work: 

For those who don’t know, COD is pretty much what it sounds like: customers are paying when the item is delivered, instead of before ordering online.

In this scenario, the customer typically does not pay for shipping: that responsibility lies on the retailer. The customer may also choose not to accept the order. In that case, you have to be ready to accept the item as returned, without ever finalizing the sale.

It’s important to note that cash-on-delivery doesn’t always mean 100 percent cash transactions. Many brands who use COD actually ask for a credit card on file, so that they can charge you as soon as you have decided to keep the purchase.

How to hire a good COD delivery service:

When looking for a COD service, particularly if you are looking in a new market, you first need to suss out who the players are. 

First, you have your large international providers who also offer COD: companies like DHL, FedEx, and Aramax.

Next, you’ll find regional providers. If you are based out of a different market, these may be provider names you haven’t heard before. Take the time to find out who they are; a little research into the best regional providers can save you a lot in fees.

In many markets, you may be dealing with densely populated or remote areas. There are countless hyper-local providers that know the territory better than anyone. If you find the right one, you can save a lot of money and cut down on delivery problems.

As with any logistics service, you’ll need to do your homework and ask questions about who delivers where. Finding the right COD provider can be confusing if you haven’t done it before, so make sure to read reviews online and speak with local business owners when you can.

Why did we choose to start our own COD service?

As an international 4PL, we pride ourselves on offering an integrated tech platform to make logistics as smooth and automatic as it can be.

However, being international also means understanding that on our great big planet, people live in a wide variety of ways, and markets work very differently from place to place. One thing about e-commerce logistics is that it is all about finding a way to cater to customer expectations.

So, that is what we are doing. Along with our totally integrated platform, Bundle (which just launched this fall), we have launched our COD service. We’re excited to cater to the full spectrum of fulfillment needs; from the highest tech to in-person cash payment.

Because that is what it is all about: catering to what the people want!

Wondering if you are offering the right payment options? 

Even after doing market research and following what your competitors are doing, it isn’t always easy to know if you are offering the options that will get your shoppers to click the “purchase” button.

COD can be expensive and difficult to do efficiently; particularly for market newcomers, it is often easier to just say “no, thanks” to COD. 

We get that, but you can’t afford to miss out on the multiplied sales you could be making with a COD offering. 

That is why we are here to help. At Wayfindr, we have all the connections you need, from overseeing your customs clearance to setting up your COD fulfillment network with the perfect hyper-local courier, we have all the connections, and all those providers are connected to our easy-to-use online interface.

Dealing with something as tedious and inefficient as cash on delivery is HARD for a brand, so let us help. Reach out to us to set up a totally free logistics consultation meeting, and we’ll chat about your options.