Collect on delivery is available with UPS and FedEx small parcel shipping services. UPS & FedEx C.O.D. service allows you to sell to customers without extending credit or requiring prepayment. C.O.D. service is available on an individual package basis for most service levels. FedEx and UPS deliver the C.O.D. package and collect from the consignee the amount requested.
Shippers can request the carrier accept only a money order, cashier’s check, or official bank check for the amount of the C.O.D. package. If you do not specify this option, they can also accept a business or personal check. In the U.S. and Puerto Rico, the carriers will not accept cash in any amount for a COD. package.
FedEx Collect on Delivery C.O.D. Fees 2023
|FedEx Priority and Standard Overnight, 2Day A.M., & 2Day, Express Saver||$19.00|
|FedEx 1Day Freight, 2Day Freight, & 3Day Freight||$99.50|
However, FedEx collect on delivery is not available for FedEx Ground Economy
UPS Collect on Delivery C.O.D. 2023
Why Use C.O.D.?
C.O.D. minimizes shipper risk when collecting payment for goods. The delivery driver collects payments, and packages are delivered only when payment has been collected.
FedEx and UPS carry many risks while trying to deliver and collect payments on a company’s behalf. The carrier is liable for all costs if the package is lost or stolen. Furthermore, if a collected check bounces due to insufficient funds, FedEx and UPS must spend time and resources to re-collect the funds owed from the customer.
How to lower FedEx & UPS COD fees
In order to lower the cost of your collect of delivery fees, it is important to quantify how much your company spends on COD each year. Shipment reporting can identify all collect-on-delivery charges and give a real summation of the yearly charges. Once known, negotiate with FedEx and UPS during contract negotiation. Shippers can achieve a 25 to 75% discount on COD fees. Finally, if you need help with proper contract negotiation, contact Refund Retriever. Our contract experts can help achieve best-in-class rates and lower your shipping costs.