How to Implement Cash on Delivery with Additional Charges in Shopify

Depending on your country, you might want to offer cash on delivery (COD) to your customers when they shop from your store on Shopify. In this shipping method, customers pay after receiving their products. It’s a beneficial method for bringing those customers in the loop who might not have a credit or debit card.

Cash on delivery remains a significant payment method globally, with COD accounting for over 15% of online transactions in countries like Vietnam and the Philippines. For Shopify stores specifically, the top regions using COD apps include Colombia (24.8%), Pakistan (11.9%), India (9.5%), and Italy (6.2%).

However, implementing COD with additional charges can be crucial for covering the extra costs associated with this payment method. Let’s explore how to set this up so that customers can see and understand these additional charges when they shop.

Relaying this information to your customers is also critical to your store’s success. You can communicate your delivery and shipping options using Delivery Timer for Shopify.

How to Enable Cash on Delivery in Shopify

Shopify now offers native support for Cash on Delivery as a manual payment method. Here’s how to set it up:

1. From your Shopify admin, go to Settings > Payments.
2. In the Manual payment methods section, click Add manual payment method.
3. Select Cash on Delivery (COD) from the available options.
4. In Additional details, enter any information you want displayed next to the payment method at checkout.
5. In Payment instructions, enter the instructions you want customers to follow to pay for their order. These instructions display on the order confirmation page.
6. Click Activate Cash on Delivery.

Once enabled, customers will see COD as a payment option during checkout. You can also set a maximum order value for COD transactions to limit risk for high-value orders.

Adding COD Fees Using Shipping Rates

If you want to charge additional fees for COD orders, you can create custom shipping rates. Suppose you’re charging $2 for all COD orders and want to differentiate between standard orders and those above a certain value.

1. Go to Settings and then to Shipping and delivery.
2. Add a new shipping rate. Title it COD + Standard Shipping.
3. Set the minimum value to $0.01 and maximum value to $99.99. Set the price to include your standard shipping cost plus the COD fee (e.g., $2.00 for COD fee).
4. Save the changes and add another shipping rate.
5. Title it Free Shipping + COD Fee. Set the minimum to $100 and leave the maximum value blank. Set the price at your COD fee only (e.g., $2.00).
6. Save the changes.

Now, when customers shop from your store, they’ll see appropriate shipping options based on their order value, with the COD fee clearly indicated.

Using Third-Party Apps for Advanced COD Management

For more advanced COD features like conditional fees, order verification, or location-based restrictions, you’ll need to use a third-party app from the Shopify App Store. Popular options in 2025 include:

Releasit Cash on Delivery – Allows you to add custom fees (fixed or percentage-based) to COD orders and hide or show COD based on various conditions like order total, country, products, collections, and customers. The app can be configured in less than 5 minutes.

Nex Advanced Cash on Delivery – Gives you full control over COD payments, allowing you to add fees, limit COD by pin codes, set order minimums, and restrict COD based on discount amounts, specific products, or collections. Setup takes approximately 60 seconds.

ACOD Cash on Delivery – Simplifies COD management by linking COD to specific shipping methods and offering options to hide or show COD based on criteria like shipping country.

Steps to Set Up Advanced COD Apps

1. Install your chosen COD app from the Shopify App Store.
2. In the app dashboard, configure your COD fee structure (fixed amount or percentage).
3. Set conditions for when COD should be available (order value ranges, specific countries, product types, etc.).
4. Customize the COD payment method name and instructions as they appear to customers.
5. Enable any additional features like OTP verification, order limits, or customer restrictions.
6. Test the checkout process to ensure COD appears correctly with the appropriate fees.

These apps integrate seamlessly with Shopify and allow you to manage complex COD rules that aren’t possible with native Shopify settings alone.

Conclusion

Offering cash on delivery (COD) with additional charges can be a game-changer for your Shopify store, especially in regions where customers may prefer or require this payment method due to the lack of credit or debit cards or concerns about online payment security.

By implementing COD with clear additional charges, you can cover the extra costs associated with this payment method while providing a convenient shopping experience. Shopify now offers native COD support through manual payment methods, making basic setup straightforward and accessible to all merchants.

For advanced features like conditional fees, location-based restrictions, or order verification, third-party apps like Releasit Cash on Delivery, Nex Advanced Cash on Delivery, or ACOD provide powerful customization options. Utilizing tools like Delivery Timer for Shopify can further enhance your communication about delivery options, contributing to your store’s success. Embrace these strategies to accommodate more customers and boost your sales, ensuring a smooth and trustworthy shopping journey.