COD (Cash on Delivery)

COD (cash on delivery) is a way of buying where the customer pays when the goods arrive instead of paying upfront at checkout. In Vietnamese ecommerce, the delivery company collects the cash and passes it back to the marketplace or the seller.

What is COD?

The Cambridge dictionary describes cash on delivery as a method of payment in which the buyer pays for the goods at the time they receive them (Cambridge Dictionary, cash on delivery, accessed October 2026). Vietnamese online sellers call a cash-collecting delivery “ship COD.”

Not everyone searching “COD meaning” wants the payment sense. COD is also short for the Call of Duty game series, and “cod” in English is a fish. This entry covers the payment meaning only.

How a COD order works

1. The buyer picks “Cash on delivery” at checkout.
2. The seller packs the order and hands it to the carrier.
3. The courier delivers and collects the cash. If the buyer refuses the parcel or several delivery attempts fail, the order becomes a failed delivery and goes back to the seller.
4. The collected cash is reconciled and paid out to the marketplace or seller.

Vietnam’s Law on E-commerce No. 122/2025/QH15, effective July 1, 2026, requires platforms with online ordering to show the payment method clearly so buyers agree to it before ordering (Article 12). Logistics providers that collect sales proceeds must give their payment account details so buyers can choose how to pay (Article 34) (Official Gazette, Law No. 122/2025/QH15, December 2025).

How marketplaces handle failed COD deliveries

On Shopee, an order moves to “Failed delivery” once it starts returning to the seller. The seller pays the return-leg shipping, from buyer back to seller (Shopee Seller Centre, Managing failed delivery orders, accessed October 2026). According to Shopee’s PiShip guide, the seller’s share of that return fee is capped at VND 40,000 per order (VND 20,000 for express orders), and Shopee covers the rest for shops using PiShip (Shopee Seller Centre, PiShip shipping savings package, accessed October 2026).

If a returned parcel arrives damaged or incomplete, the seller has 7 days from receiving it to file a claim with Shopee (per the failed delivery page above).

The cost of failed COD deliveries (hypothetical)

A fashion shop sells a shirt for VND 300,000. It costs VND 120,000, and shipping is VND 30,000 each way, paid by the shop. This month there are 100 COD orders, and 15 fail.

• 85 successful orders: 85 x (300,000 – 120,000 – 30,000) = VND 12,750,000 gross profit.
• 15 failed orders lose two-way shipping: 15 x 60,000 = VND 900,000.
• The shop spent VND 5 million on ads. Per order placed, that is VND 50,000. Per order delivered, it is 5,000,000 / 85 = about VND 58,800.

So when you measure ad ROI, use delivered orders as the denominator. A report that counts only orders placed looks better than reality, especially in sales like 11.11 when order volume jumps.

COD vs prepaid

Frequently asked questions

What does “ship COD” mean?

Delivery with cash collection. The courier takes payment from the buyer, and the carrier pays the seller after reconciliation.

Should a shop turn off COD to cut returns?

It depends on margin. Run the calculation above with your shop’s real failed-delivery rate. If COD orders still make money after two-way shipping, keep COD.

Adtek runs ads on marketplaces and websites; it does not operate marketplace stores. Our guide to retail media in Vietnam: Shopee Ads and TikTok GMV Max covers how to measure marketplace ads, and you can reach us through the Brand Commerce page.