Cash on Delivery (COD) is one of the best way to gain customers trust while they shop online. In some countries Cash on Delivery is so popular that it represents over 90% of a store orders. While Cash on Delivery brings a lot of benefits to your store it also creates issues with return costs and collection costs by shipping services providers. On of the best ways to improve profitability of Cash on Delivery is to charge customers an extra fee.
If you have not enabled Cash on Delivery check out our guide How to Enable Cash on Delivery on Shopify.
If you already have some experience on Shopify you might have noticed that it does not give you the option to add an extra fee to Cash on Delivery. This has caused a lot of problems to Shopify Merchants in the past, but there are 2 ways to add an extra fee to your Cash on Delivery orders:
Option 1: add a shipping rate for Cash on Delivery
Because Shopify does not support an extra fee for COD out of the box, some merchants have created a workaround to still charge their customers the extra fee. The workaround requires you to add a shipping rate to your store for Cash on Delivery. When your customers checkout they need to select the Cash on Delivery shipping rate.
After your customers have selected the Cash on Delivery shipping rate they will have to select the Cash on Delivery payment method on the payments page to confirm their order.
The issue with this workaround is that customers can still select your cheaper shipping rates (Free Shipping in the case of the picture above) and complete their order with Cash on Delivery on the payment methods checkout page. This is because it's not possible to show only specific payment options based on the shipping rate a customer has selected. So merchants end up with a lot of Cash on Delivery orders completed with Free Shipping and without the extra fee.
Option 2: use our Shopify App!
As Shopify Merchants ourselves we have faced the issues of Option 1 so much that we created a Shopify App to solve this issue for our stores.
Our app Releasit Cash On Delivery Fee works out of the box without having to add a separate shipping method for Cash on Delivery and allows you to add a custom extra fee to Cash on Delivery orders automatically.
How our app works:
- Your customers will checkout their order like a normal order and when they get to the payment method checkout page, if they select Cash on Delivery, they will see your additional fee. If they don't want to pay the additional fee for COD they can easily choose another payment method.
- When a customer completes an order with Cash on Delivery, your extra fee will be added automatically to that order.
- Your customer will see your COD surcharge on all notifications and on the order Thank You page.
- You will also have the option to add an instructions message to both your order notifications and order Thank You page to give your COD customers more info on how to prepare for delivery.
The app is free to install and takes less than 10 minutes to configure, check it out now on the Shopify App Store here https://apps.shopify.com/cash-on-delivery-fee and give it a try! If you need help configuring the app you can contact our amazing support team that will ensure the app works perfectly on your store!