In e-commerce, trust is everything—especially in Malaysia, where a large portion of customers still hesitate to pay upfront. That’s why Cash-on-Delivery (COD), or locally known as “barang sampai baru bayar”, remains a powerful payment method for both new and established online sellers.
But how does COD work from a business point of view? Is it risky, or does it bring more rewards? Let’s break down everything online sellers need to know.
What is COD in Business?
Cash-on-Delivery (COD) is a payment method that allows customers to pay only after receiving the product. Rather than using online banking, credit cards, or e-wallets, the customer hands over the cash (or sometimes transfers digitally) to the delivery rider on the spot.
From a business perspective, COD is more than just a payment option—it’s a conversion booster. Many Malaysians are more comfortable paying upon delivery, especially for first-time purchases.
By offering COD, you’re reducing friction at checkout and increasing your chances of closing the sale.
Example of COD in Action
Let’s say you sell handmade scented candles on your Instagram shop. A customer DMs you, places an order, and selects COD. You prepare the parcel and arrange delivery through a courier company.
When the parcel arrives, the delivery rider collects the cash from your customer.
The money doesn’t go to the rider directly—it goes to the courier’s system, which will then transfer the amount back to you based on their remittance schedule.
That’s it. You didn’t have to chase payments or worry if the customer has online banking. You just fulfilled the order and got paid after delivery. Easy.
How Does COD Delivery Work for Sellers?
COD might seem a little complicated at first, but the process is simple when you break it down:
✅ Step-by-step COD process:
- Customer places an order and selects COD as the payment method.
- You pack and hand over the parcel to your courier partner.
- Courier delivers the parcel, collects cash, and updates the system.
- Courier remits the cash to you according to the agreed settlement schedule.
💡 Business advantage: This smooth cash flow process helps you maintain operations, especially if you’re running a small business with tight budgets.
COD Terms & Conditions: What Sellers Should Know
Like all business services, COD comes with a few important terms you should be aware of:
- COD handling fees: A small fee (usually based on a percentage or flat rate) is charged per COD order.
- Remittance schedule: Each courier has a specific payment cycle (e.g., weekly or biweekly).
- Failed deliveries: If the buyer isn’t home or rejects the parcel, it will be returned to you. No payment will be made unless delivery is successful.
- Risk of fake orders: Some buyers might place COD orders with no real intention to accept them. To reduce this, you can implement confirmation steps (e.g., WhatsApp verification or OTP).
Ninja Van, for example, provides 3 delivery attempts and clear tracking updates—helping you reduce failed deliveries and improve your COD success rate.
COD Availability: Where Can You Offer It?
With Ninja Van, COD is available across Peninsular Malaysia and in selected areas of Sabah and Sarawak.
Before shipping, you can always check the service coverage via its contact support (NinjaChat) to ensure the destination allows COD.
Whether you’re sending to urban cities like Kuala Lumpur and Johor Bahru or suburban areas in Kedah and Melaka, COD gives you more flexibility to cater to different types of buyers—especially those who are less familiar with online payment methods.
So, Is COD Right for Your Business?
COD might seem old-fashioned, but it’s still one of the most effective ways to attract hesitant buyers, increase trust, and drive conversions—especially in markets like Malaysia. Whether you’re a small Instagram seller or an established online store, enabling COD can give your customers the confidence to order, knowing they only pay when the item arrives.
With a trusted logistics partner like Ninja Van, offering COD is easy, trackable, and reliable. You’ll gain access to:
- Real-time tracking and delivery status
- Reliable cash remittance
- Coverage across Malaysia
- 3 delivery attempts for maximum success
Ready to boost sales with COD?
Make every order count—with trust, convenience, and peace of mind.
