هل لازم توفر الدفع عند الاستلام في متجرك والمميزات والعيوب

Sahl Thursday,22 May 2025

In the world of e-commerce in Saudi Arabia, many merchants ask:
"Should I add a cash on delivery (COD) feature to my store?"
Especially since Saudi customers have diverse preferences, and a significant percentage prefer to pay after receiving the product.
But before you add this feature, it's important to understand its pros and cons, and whether it's truly suitable for your store type and audience.
In this blog, we'll simplify the picture and help you make the right decision.
1. What does cash on delivery mean?
Cash on delivery (COD) is an option that allows customers to order products without paying upfront and pay upon receipt, either in cash or via a mobile point of sale device.
This service was widely used in the early days of e-commerce in Saudi Arabia, but it has begun to decline with the advancement of electronic payment methods.
2. Advantages of Cash on Delivery
• Builds greater trust with new customers: Many people prefer COD, especially if they're buying from your store for the first time, because they don't trust it easily or fear fraud.
• Increases orders initially: If you're a new store, orders can increase quickly because customers feel more secure when they don't have to pay directly.
• Gives an opportunity to people who don't use cards or digital wallets: Although electronic payments have become widespread, there is a segment that still relies on cash, especially in certain cities or age groups.
3. Disadvantages of Cash on Delivery
• High cancellation rate: Some customers order and then return, changing their minds without any commitment, which costs you unnecessary shipping and delivery costs.
• Affects cash flow: You can't rely on immediate cash because you're waiting for the shipment to arrive and for the customer to pay.
• Higher operating costs: Shipping companies charge additional fees for cash on delivery, as the process requires more time and effort.
• Risks to your inventory: If you experience frequent cancellations, your products will sit in the warehouse for a while, and your sales may be affected.
4. What do large stores do?
Many large stores in Saudi Arabia, such as Noon, Amazon, and Extra, offer cash on delivery, but with conditions, such as:
• It's not available for all products
• There are additional fees
• Or it's only available for customers in certain areas.
The goal is to reduce risk while maintaining customer convenience.
5. Is it right for your store?
Before adding the service, ask yourself:
• Do my products require a high level of trust?
• Does my target audience prefer cash payments?
• Can I afford the costs and risks?
• Do I have a shipping company that manages COD operations effectively?
If you answered yes to most of these questions, you might consider it as a starting point. If you're a fully digital store or sell digital products, you'll likely need it. 6. Tips if you decide to implement cash on delivery
• Set a minimum order value to reduce random cancellations.
• Follow up on orders closely and communicate with customers immediately after ordering.
• Clarify your cancellation policy and let customers know they are committed.
• Use reliable shipping companies that know how to manage COD transactions efficiently.
Cash on delivery can be a double-edged sword.
It helps you build trust with customers, but it comes with risks and costs that you must account for.
If you're a merchant in Saudi Arabia and want to start right, it's best to balance your payment options and make COD a small part of your options, not the main one.
If you want to manage all of this professionally and build a fully integrated online store with flexible and secure payment options, you can rely on Sahal.
We provide you with integrated electronic payment gateways and help you choose the one that best suits your store and customers.
(Let's get started today) and base your decisions on a real-world understanding and experience of the Saudi market.