Check this article for everything you want to know about COD

2019-07-19 06:23:00


There have always been users asking a lot about COD issues.

What is COD? How to do COD? What does COD sell? Which country is better for COD? What kind of COD advertising do you have on your platform?

Given that there are still many users who don't understand what COD is all about, today we will tell you about the concept, characteristics, and the correct way to find COD secrets in Idvert.

What is COD?

COD is the abbreviation of "Cash on delivery". Cash on delivery means the customer gives the money to the delivery person after the products are delivered, which is a payment method generally used in e-commerce.

Many large e-commerce platforms have a COD payment model, but in the cross-border e-commerce industry, COD mainly referrers to the 1-click conversion COD mode. All you need is only designing a single shopping page to collect the customer’s delivery information.


COD operation mode

Social Media Advertising + Localized Customer Service + 1-click Conversion Page

● Social media oriented selling channel. Usually focused on Facebook and Instagram.

● Local pre-sales customer service, and communicate with customers through WhatsApp, Line, etc., to increase their trust.

● Shipping directly through overseas warehouses, paying attention to the delivery timeliness, long delivery time will decrease the sign-offg rate.


COD market

The COD e-commerce model still has a broad market in Southeast Asia and the Middle East. These markets have a common feature — the local network and infrastructure such as payment and logistics are relatively backward. Particularly, payment methods are not using widely in the six Gulf countries, Vietnam, Indonesia, and the Middle East.

The COD model also solves the “trust” problem of consumers for new e-commerce sellers. Consumers have insufficient trust for non-native e-commerce platforms, and 1-click conversion COD mode just solved that problem.

Take the e-commerce platform such as Amazon, AliExpress and eBay as an example. With the increasing number of sellers, the competition is becoming more and more fierce, the cost of obtaining traffic is getting higher, and the price competition is getting stronger .

When e-commerce sellers’ profit margin on the platform is getting lower, the trend of de-platformism becomes more prominent. More sellers are turning their favor into independent stations, and compared to normal shopify sites, 1-clicked COD page is the fastest way to start an e-commerce business.


Key point of COD

1. Selection

Every seller knows the importance of a winning product. There are two features of a winning product: 1. the product’s price is attracting enough. 2. the product itself is eye-catching. The 1-click COD page often sells products that are trendy and generally are not available on local e-commerce platforms.

Winning product is about 70% product selection and 30% operations! However, winning product is easy to be followed by other sellers, thus soon the sales and price will fall. In that, it’s more important to predict a winning product when it’s still a promising one.

On Idvert, we can see all COD ads directly through 1-click COD button, and estimate whether the product is popular according to the hotness of the advertisement. Thereby making a selection.



2. Sign-off and return rate

In addition to the product selection, the sign-off rate can be regarded as the lifeline of a COD product. With the same advertising and purchasing cost. The difference between a 80% sign-off rate product and a 50% sign-off rate product is that in the first case the seller will be able to make profit while the latter might not be able to cove the cost.

The payback rate refers to the percentage of the amount of money returned by the logistics company after deducting the logistics cost in the amount of the COD product’s selling price. The payback rate indicates the indicators of the logistics cost (door-to door delivery costs) and the sign-off rate.


3. Secondary delivery and forwarding

Rejected COD products will increase the storage and transfer costs, in that, if the seller can work with a local logistic company the cost will be largely reduced.


4. Payment Collection

There’s no doubt that the payment collection is the most important step in the COD mode. Generally speaking, it usually takes a week to receive the payment from the logistic company, but in some cases it might need roughly a month. The payment can be transferred directly to US account by the logistic company or to the RMB account by other payment channels.


5, Idvert's COD function

Winning COD product is basically the result of an in-depth investigation and cooperation of the local market, including the research of the local customer behavior, sign-off rate, payment collection period and logistic procedure.

If your time is limited, you can use the 1-click COD button on Idvert to directly filter out the COD ads and learn the experiences from your competitors. Simply select the promising products on your judge and set up your own campaign, the next winning product will be on your side.

All the copywriting, creatives and LP of your competitors can be copied directly.


You can also adjust your own advertising strategy based on your competitors’ad performance, such as targeting country, device, marketing objective, interactive trend, gender, age, interests and domain name data, which can save you a lot of time and testing costs.