In the world of e-commerce, offering flexible payment options is essential for building trust and catering to diverse customer preferences. One such option that continues to gain popularity is Collect on Delivery (COD). For WooCommerce store owners, integrating UPS Collect on Delivery (COD) can be a game-changer, allowing customers to pay for their purchases at the time of delivery.
In this article, we’ll explain how UPS COD works, its benefits for your WooCommerce store, and how to set it up easily using the WooCommerce UPS Shipping Plugin. From costs and fees to best practices, we’ll guide you through everything you need to offer UPS COD seamlessly.
Article Contains:
- What is UPS Collect On Delivery (COD)?
- Understanding UPS COD
- Why Offer UPS COD on Your WooCommerce Store?
- How to Set Up UPS COD in WooCommerce
- Common Challenges of UPS COD & How to Overcome Them
- Conclusion
- FAQs
What is UPS Collect On Delivery (COD)?
UPS COD is a payment option that allows customers to pay for their order at the time of delivery, rather than upfront. When a customer places an order using UPS COD, the payment is collected by the UPS driver upon delivery. The payment can be made by a check or a money order, depending on the selected option.
This service provides flexibility to customers who may not want to pay online or prefer to pay upon receiving the goods. UPS then transfers the collected payment back to the seller, typically within a few business days. COD is commonly used for high-value or remote-area deliveries where prepayment might be less common.
For WooCommerce store owners, UPS Collect on Delivery (COD) offers an additional payment option, which can increase conversions and appeal to customers who prefer paying at delivery.
Understanding UPS COD
Before offering UPS Collect on Delivery (COD) in your WooCommerce store, it’s essential to understand the associated costs and how the service works. UPS COD is available exclusively for domestic U.S. shipments and includes a fixed service charge and specific payment handling rules.
UPS COD Service Charge
UPS charges a flat fee of $19.00 for each COD package. This fee is added to the overall shipping cost and is typically billed to the shipper. If you plan to offer COD, consider how this cost will be absorbed, whether passed on to customers or included in your product pricing.
Accepted Payment Methods
UPS allows the consignee (recipient) to pay using:
- Money orders
- Business checks
- Personal checks
- Certified/cashier’s checks
UPS Capital® Enhanced COD
For WooCommerce merchants who want quicker access to collected payments and more flexibility, UPS offers an Enhanced COD service through UPS Capital. Key features include:
Key features include:
- Electronic fund transfers within 2–3 business days
- Access to daily remittance reports for easy reconciliation
- Reduced internal processing and reconciliation costs
- Lower risk of non-payment and insufficient funds through secure check processing
This service can streamline operations, improve liquidity, and significantly reduce the delays and manual efforts involved in handling traditional COD payments.
– The UPS driver collects payment at delivery. If payment is not available, the package will not be handed over.
– Inform customers clearly about accepted payment types at checkout to avoid delivery failures.
– UPS accepts CODs up to $50,000 per shipment.
Why Offer UPS COD on Your WooCommerce Store?
Offering UPS Cash On Delivery (COD) can provide several advantages to your WooCommerce store, both for your business and your customers. Here’s why it’s worth considering:
- Attract a Larger Customer Base
Offering COD makes your store more appealing to customers who prefer not to pay upfront or digitally, often due to trust concerns, especially in markets where credit card usage is low or not preferred. - Build Trust with Customers
COD offers a level of security for buyers, as they pay only when the product arrives. This builds trust, especially for new customers who may hesitate to pay upfront, knowing they can inspect the product first. - Increase Conversion Rates
Some customers abandon their carts when they are required to pay upfront. By offering COD as an alternative payment option, you can reduce cart abandonment and increase conversions. - Boost Sales for High-Value Products
For higher-priced items, offering COD can be reassuring for customers who may be concerned about fraud or delivery issues. - Lower Payment Processing Fees
Offering COD eliminates the need for third-party payment gateways, saving you transaction fees. This can help reduce overhead costs and improve your profit margins.
Offering UPS COD provides flexibility, builds trust, and improves cash flow for your business.
How to Set Up UPS COD in WooCommerce
The WooCommerce UPS Shipping Plugin makes it easy to enable UPS C.O.D. for your store. Start by installing and configuring the plugin.
Once set up, follow these steps:
- Configure the UPS COD option in the plugin’s shipping settings.
- Select the accepted COD Type:
- Check / Cashier’s Check / Money Order
- Cash (Note: Cash payments are accepted only outside the United States)
- At checkout, customers will see UPS real-time shipping rates based on your configuration.
- The plugin also generates UPS-compliant shipping labels that include the C.O.D. amount, indicators, and tracking information, directly from your WooCommerce orders page.
- UPS will attempt delivery up to three times to collect payment. If successful, they’ll forward the payment to you, either by mail or electronically via UPS Capital (if enrolled). If the amount cannot be collected after three delivery attempts, the package is returned to the sender.
This setup gives WooCommerce merchants a reliable way to offer flexible payment options and streamline COD order fulfillment.
Common Challenges of UPS COD & How to Overcome Them
UPS COD offers flexibility but comes with challenges. Here’s a brief look at common issues and solutions for WooCommerce store owners:
1. Failed Collection Attempts: UPS attempts to collect the COD amount up to three times. If unsuccessful, the shipment is returned to the sender.
Solution: Set clear delivery expectations and send proactive reminders to ensure customers are available with payment at the time of delivery.
2. Payment Delays: By default, UPS mails the collected amount, which delays cash flow.
Solution: Enroll in UPS Capital® Enhanced COD to receive electronic deposits within 2–3 business days, improving cash flow and reducing delays.
3. Manual Workflow for COD Orders: UPS requires merchants to manually tag each order as COD, enter the collection amount, and print labels. This can become time-consuming for businesses with many COD orders.
Solution: Automate the process using the WooCommerce UPS Shipping Plugin, which allows for easy configuration, automated labeling, and COD rate display at checkout.
4. Payment Method Restrictions & Risk: UPS accepts checks, money orders, or certified checks for COD payments, but cash is not allowed in the U.S. Additionally, the shipper assumes all risks related to non-payment, insufficient funds, and fraud.
Solution: Reduce payment risks by choosing certified checks or using UPS Capital’s Enhanced COD service, which ensures quicker and more secure payment transfers.
5. Reconciliation & Tracking Issues: Tracking COD payments manually and reconciling them takes time and increases errors.
Solution: Use UPS Capital’s enhanced services and WooCommerce UPS Shipping Plugin to track payments, access daily reports, and simplify reconciliation.
Conclusion
Offering UPS COD in your WooCommerce store provides a trusted payment option that can attract more customers, especially in markets where upfront payments are less common. It boosts conversions and helps secure payments for high-value products. While challenges like payment delays and manual processes exist, the WooCommerce UPS Shipping Plugin can simplify these issues, improving cash flow and efficiency.
If you need any help or encounter any issues during setup, reach out to PluginHive Support
FAQs
- How do I handle COD payments if I have multiple COD orders in WooCommerce?
The WooCommerce UPS Shipping Plugin allows for easy handling of bulk orders. You can automate the process by enabling COD options and using the plugin to generate shipping labels and track payments, saving time and reducing errors.
- Is there a maximum amount I can collect using UPS COD?
Yes. You can use UPS COD for shipments up to $50,000 (or the equivalent in USD). Make sure each order stays within this limit.
- How long does it take to receive the money from a UPS COD delivery?
With standard UPS COD, payment is mailed by check and typically arrives within 7 to 10 business days. If you’re using Enhanced COD through UPS Capital®, funds are transferred electronically within 2 to 3 business days.
- Does UPS guarantee payment collection for COD orders?
UPS does not guarantee it will collect payment. If the customer fails to provide a valid form of payment, UPS will not deliver the package. The shipper assumes all responsibility for any payment-related risks.
