Accepting C.O.D. Payments

Cash on delivery (C.O.D.) might sound good on paper. You ship the item, with the stipulation that the delivery man (or woman) collect payment when the item is delivered.

Caution

If a check bounces, the depositor (you) will likely be assessed a fee from your bank. (The writer of the bad check will also have a fee to pay.) If the buyer who wrote the check offers to make good on the payment, make sure that they reimburse you for your bad check fee, over and above the final auction price.

There are problems with this method, however. What happens if the buyer isn't home when the delivery is made? What if the buyer is at home, but doesn't have the cash? What if the buyer refuses to payand rejects the shipment? I've heard stories that up to 25% of all C.O.D. orders being refused, for one reason or another. And if the item is refused, you (the seller) have to pay postage in both directions.

Even worse, C.O.D. service often comes with a high fee from the carrierand it's a fee that you, the seller, have to pay. The additional fee alone rules out C.O.D. for many sellers.

All things considered, it's easy to see why few eBay sellers offer C.O.D. payment. The problems with this payment method tend to outweigh the benefits, and I can't recommend it.