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Finance: What is Cash on Delivery (COD)? 41 Views


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Description:

What is Cash on Delivery (COD)? In transactions where buyer and seller are not physically in the same place, a Cash on Delivery transaction is one where the buyer pays upon delivery. If the buyer does not pay at delivery, the product is taken back to the seller. The seller assumes the risk of shipping costs while the buyer has assurance that they have not paid out unrecoverable money to an unknown seller.

Language:
English Language

Transcript

00:00

Finance a la shmoop what is cash-on-delivery?

00:05

or CoD well if you have a deadbeat buyer who's taken forever to pay you in [Danny Deadbeat laying on sofa]

00:12

the past think remember Popeye and wimpy borrowing money for burgers next Tuesday

00:18

when he actually never pays you'll eventually have to make that customer

00:21

that deadbeat a COD status purchaser well CoD has nothing to do with cheap

00:28

fish rather it stands for cash on delivery like you get cash when the good

00:33

is delivered and it means that the postal person or UPS gal or FedEx dude

00:37

has to collect the cash you are owed before they will actually leave the [Cash transfers to mail people]

00:42

package being shipped at the warehouse on your doorstep or van parked you know

00:47

down by the river if a client has such bad credit or has such a miserable

00:50

payment record that they have to be put on COD status well you may really have

00:55

to re-evaluate your relationship there COD also carries charges and often

01:01

they're big because a postal worker may have to ring the door eight times before [Postal worker ringing door bell]

01:05

finding the deadbeat at home and then even if he is home well it's uncertain

01:09

whether or not he'll have the ready cash to pay for whatever goods he just

01:13

ordered and sometimes you'd have better odds of getting money out of this thing [Pile of fish appear]

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