There is one potential downside to shipping COD which is present every time an order is shipped in this matter. This of course, is the potential that the package could be refused by the customer. Most ltl carries with experience in shipping COD will tell you that this doesn’t happen all that often, but it is still a reality that clients of these shipping companies must contend with.
It is important to realize that this legal right is there for a reason. There were simply too many people that would try to swindle honest customers in the early days of shipping such as through mail order shipments. The lessons learned are why that all customers have the right to refuse a COD shipment. However, many are finding as this method of shipping experiences a bit of a comeback that as long as you are dealing with your customers in an up front and honest way, and shipping a product as described, the refusal rate should be very low.
Usually, people order something that they want, or need. These wants and needs very rarely change in the amount of time that it takes for the product to be shipped to them, so, typically you won’t have to worry about too many refusals. If a package is refused though, there are some costs which you are going to be responsible for.