This article clarifies the implementation, benefits, and requirements for the Cash on Delivery (COD) payment method within the WooCommerce platform.

In Estonian, Cash on Delivery is known as “lunatasu“ or “maksmine paki kättesaamisel“. COD is an extra service that allows a customer to pay for their parcel at the time of delivery rather than during the online checkout process.

The customer can complete the COD payment in one of three ways, depending on the carrier:

At a parcel machine.
Via a secure payment link.
Directly to the courier.

💻 Requirements and Limitations for Cash on Delivery (COD)

To ensure the Cash on Delivery (COD) payment option functions correctly, please note the following critical requirements and limitations:

Plugin Requirement: The COD feature is only supported when using the official WooCommerce shipping plugin.
Contract Requirement: The COD service is only supported for direct carrier contracts.
Error Handling: If the COD service is not supported for a specific chosen carrier or a particular parcel machine location, the system will:
- Display an error message at the checkout.
- Prevent the order from being successfully placed.

✨ Benefits of Offering Cash on Delivery (COD)

Offering Cash on Delivery is a valuable feature that strengthens customer trust and expands your market reach. It provides benefits for both merchants and customers:

For Merchants

Attract More Customers: Offering COD can attract customers who are cautious about paying upfront, especially first-time buyers.
Build Trust and Security: It helps build brand trust by providing a secure transaction model.
Increase Order Volume: By appealing to a broader customer base, you can potentially increase the overall volume of orders.
Expand Market Reach: While already popular with Lithuanian and Polish merchants, introducing COD is also a valuable strategy for reaching customers in Estonia and Latvia.

For Customers

Security and Trust: Customers gain a sense of security as they only pay once they have received and confirmed their order.
Increased Accessibility: It is helpful for individuals who may not have access to digital payment methods or are hesitant to share card details online.
Payment Deferral: Since payment is delayed until delivery, customers effectively keep their funds longer, allowing a few extra days to manage cash flow.
Reduced Financial Risk: If there are issues with the delivery (such as delays, damage, or an incorrect item), the customer has not yet parted with their money. This is especially relevant for the COD at the door option.

🚚 Supported Carriers and Payment Methods for COD

The Cash on Delivery service is only available through the following carriers that have a direct contract with the merchant.

DPD Direct Contract

Customer Payment: The recipient can pay the DPD courier for the goods, either in part or in full, upon delivery or collection at a DPD parcel locker.
- Accepted Payment Methods: Common bank cards are accepted for payment (with the exception of American Express).
Service Area: Entire Estonia (excluding small islands), Latvia, and Lithuania.

Venipak Direct Contract

Customer Payment: Payment can be collected via the courier or at the parcel machine.
- Accepted Payment Methods: Payment by cash (courier) or by card at the time of delivery (courier) or at the parcel machine.
Service Area: Estonia, Latvia and Lithuania.

Unisend Direct Contract

Customer Payment: Payment is collected at the parcel locker.
- Accepted Payment Methods: Payment by card only at the parcel locker.
Service Area: Estonia, Latvia and Lithuania.

Activate Shipping contracts in Montonio Partner System

Learn more here

🛠️ How to Add the Cash on Delivery Payment Option in WooCommerce

To enable and configure the Cash on Delivery payment option in your WooCommerce checkout, follow these specific steps in your administrative dashboard:

Navigate to the Settings menu within your WooCommerce dashboard.
Click on the Payments tab.
Locate the section titled Take offline payments.
Find the payment option named Cash on Delivery.
Click the Manage button associated with Cash on Delivery to enable and configure the payment method for your store.