COD by mail: commission, cost, and when it's more profitable than a delivery service

For COD, the carrier charges 2% of the amount plus $0.4 (incl. VAT) for the money transfer: for an order of $12, it's $0.6, and for $24, it's $0.8. Usually, the recipient pays this fee upon pickup, but it's best to clarify when placing the order. Below is a comparison with the delivery service for the same amounts, showing when the carrier is more profitable for single-product e-commerce and how to give the buyer a choice of carrier directly in the landing page form.

Create Landing Page for FreeNo registration. Pro for 7 days free — when you save your landing page.

How cash on delivery works at the post office

The scheme is the same as with other carriers. You create a parcel and specify the COD amount – how much the buyer needs to pay for the product. The buyer comes to the branch, pays this amount, and picks up the parcel, and the postal service transfers the money to you.

Delivery type — "Priority" or "Basic". Previously, they were called "Express mail" and "Standard mail," so old instructions refer to the same services. They differ in speed and price; specific terms and rates can be found in the calculator on the postal service's website — they depend on weight, size, and destination.

In single-product e-commerce, it's important not to mix two amounts: shipping cost and the COD transfer commission. These are separate payments and must be calculated independently.

Commission, plan, and cost: what the customer pays

The COD transfer fee at the post office is 2% of the amount plus $0.4, including VAT. The fixed part is the same for any check, so it's more noticeable on inexpensive goods — see the calculation below.

Usually, the recipient pays the commission along with the product amount. So, a buyer ordering for $12 will pay $13 at the branch, plus delivery if you haven't paid for it. This final amount should be stated during the call to avoid surprises at the post office.

Rates change: before launching, check them on the postal service's website or app and clarify who pays the commission when placing the order.

  • Order for $4.8: $0.1 + $0.4 = $0.5
  • Order for $12: $0.2 + $0.4 = $0.6
  • Order for $24: $0.5 + $0.4 = $0.8
  • Formula for your amount: amount × 0,02 + $0.4

mail or delivery service: commission comparison for 500 and $24

At the delivery service, NovaPay transfers cash on delivery funds. For a private seller without a contract, the buyer pays 2% + $0.5 in cash or with another bank's card, and 1% + $0.2 with a NovaPay card. For sole proprietors and LLCs with a contract, there is "Payment Control" from NovaPay: on the "Standard" plan, the seller covers the entire fee — 2,5% when crediting to a NovaPay account or 3,3% to an account at another bank, and the buyer pays nothing for the transfer.

Conclusion: If the buyer pays cash, postal delivery is cheaper by $0.1 per order—the percentage is the same, the difference is in the fixed fee. If the buyer has a NovaPay card, the delivery service is cheaper. But the commission is only part of the costs: also compare delivery and return costs according to the current tariffs of both carriers.

  • mail: $0.6 for $12 and $0.8 for $24, paid by buyer
  • NovaPay, cash or other bank card: $0.7 and $1, paid by the buyer
  • NovaPay, NovaPay card: $0.4 and $0.5, paid by buyer
  • "Payment Control," "Standard": seller pays $0.3 and $0.6 (NovaPay account) or $0.4 and $0.8 (other bank), buyer pays nothing

When postal services are more profitable for single-product e-commerce

There are several situations where postal services are justified not only by price.

Inexpensive goods. For an order of $4.8, the postal commission is $0.5, and for NovaPay cash payment, it's $0.6. For a check of a few hundred hryvnias, these $0.1 are noticeable — either in your margin or in the price for the buyer.

Villages and small towns. Where a post office branch is closer than a delivery service, it's easier for the buyer to pick up the parcel, and an unclaimed parcel is a direct loss.

Customers who pay in cash. For them, the difference in the fixed part of the commission works in your favor.

If your audience is mostly urban and accustomed to delivery services, there's no point in forcing postal delivery — it's better to offer a choice.

Downsides and what happens if the parcel isn't picked up

If a buyer doesn't pick up a cash-on-delivery parcel, it returns to you. You don't receive money for the item, but since no transfer occurred, there's no commission either. The sender typically pays for the delivery that the buyer was supposed to cover. Check the free storage period and return conditions with the postal service before launching.

For comparison: in the delivery service, a parcel stays free for 7 calendar days (arrival day is not counted), and returns of parcels up to 30 kg are included in the main service's rate.

Other downsides to consider:

  • urban audiences are more accustomed to delivery services, and a "postal service only" condition might cost you leads
  • small branches sometimes have shorter hours — customers need to pick up the parcel in time
  • while the parcel is in transit and sitting at the branch, money is tied up in inventory — count your turnover, not just commission
  • the conditions for the sender to receive funds, including to a card, depend on your status and contract — verify them before your first shipment

How to give customers a choice of carrier in the order form on your landing page

The easiest way not to lose customers who prefer postal services is to add carrier selection directly to the form. A typical set of fields: phone, carrier (delivery service or postal service), city, and branch or index. The name can be made optional; the rest can be clarified during the call.

Above the form, briefly write the terms: payment on delivery, which services you use, who pays for shipping. When terms are visible before the lead is submitted, there are fewer unpleasant surprises on the call.

In LandEmpire, form fields are customizable—city, branch, size, and others—so the carrier field is added the same way. The form validates local mobile numbers and filters out spam. Leads with a selected carrier appear in your dashboard and, if connected, immediately in Telegram, email, or HubSpot, Pipedrive, Bitrix24. You arrange the parcel and tracking number yourself in the carrier's dashboard.

What's not here

LandEmpire is a landing page builder, not a delivery service. We do not process parcels or waybills, are not integrated with postal or delivery service APIs, do not accept card payments on the landing page, and do not calculate delivery costs for you. We do not call buyers and do not guarantee pickup. Carrier rates in the text are taken from their official price lists; they change, so verify them on the carrier's website or app before launching.

Frequently asked questions

What is the postal service's COD fee?

2% of the amount plus $0.4 VAT for money transfer. For $12 it's $0.6, for $24 it's $0.8. This is usually paid by the recipient upon receipt, but confirm this when ordering: rates change.

How much does it cost to send a parcel cash on delivery by mail?

These are two amounts: delivery and the COD transfer fee. Delivery depends on the type ("Priority" or "Basic"), weight, and size — see the postal calculator. The transfer fee is 2% + $0.4.

How to receive a postal COD payment to your card?

This depends on the postal service's terms for your status: private individual or business with a contract. Before launching, check on their website or app if card transfers are available, the timeframe, and if there's a sender's fee.

What happens if a COD parcel isn't picked up?

It will be returned to the sender, and you won't receive payment for the item. The sender typically pays for the delivery that the buyer was supposed to cover. Check with the postal service in advance regarding storage duration and return costs.

What's cheaper for single-product e-commerce: postal service or delivery service?

For transfer fees, the postal service is $0.1 cheaper per order if the buyer pays with cash or another bank's card. With a NovaPay card, the delivery service is cheaper. Compare the final cost including delivery, returns, and unclaimed parcels.

Read more about this

All articles →

Other topics

Try it now

Paste your product link — get a ready-made landing page in a minute. No sign-up needed.

Prom, AliExpress, Amazon, or any store. No registration needed — see results instantly.AliExpress, Amazon, eBay, or any store. No registration needed — see results instantly.

Create Landing Page for Free

No registration. Pro for 7 days free — when you save your landing page.