Courier Cash – Getting Paid and Saving on Delivery Fees

If you ship parcels every week, you’ve probably wrestled with two things: how to pay the courier and how to keep fees low. It’s not rocket science, but a few smart moves can save you cash and avoid nasty surprises. Below you’ll find easy steps to handle courier payments, negotiate fees, and make cash on delivery (COD) work for you.

Understanding Courier Fees

Every courier adds a base rate, a weight surcharge, and sometimes a fuel or remote‑area charge. The biggest hidden cost is the “service fee” that shows up when you choose a faster option or a guaranteed delivery window. To cut these extras, compare at least three providers for the same route and weight. Use the online rate calculators many couriers publish – they give a quick snapshot of the total cost before you book.

Another tip: bundle shipments. If you send five small parcels to the same postcode, ask the courier if they offer a bulk discount. Most will shave a few pounds off the per‑package price, especially if you’re a regular client. Don’t be shy about asking for a loyalty rate; many companies have tiered pricing that isn’t advertised online.

Cash on Delivery Best Practices

COD can be a lifesaver for e‑commerce sellers who need to guarantee payment before handing over the goods. The key is to keep the process smooth for both you and the driver. First, set a clear COD limit – most couriers will only collect up to a certain amount per package, often £500 in the UK. If you regularly ship higher‑value items, you may need a special agreement or a prepaid insurance plan.

Second, make sure the cash is counted in a secure way. Use a lockable cash box in the driver’s vehicle and have a written receipt ready for every transaction. This reduces disputes and speeds up the cash‑to‑bank cycle. Many businesses now use mobile payment apps that let the driver accept card or QR‑code payments on the spot, eliminating the need for physical cash altogether.

Third, track COD shipments in real time. Most modern tracking platforms let you see when the payment is collected, who collected it, and the exact amount. If something looks off – for example, a payment missing from the dashboard – you can flag it immediately and avoid lost revenue.

Finally, plan for the cash flow lag. Even if the driver hands you the cash at the doorstep, it may take a day or two to get it into your bank account. Build a small buffer into your cash flow forecast so you’re not caught short when you need to restock or pay suppliers.

Putting these ideas together, you’ll spend less on courier fees, handle COD with confidence, and keep more money in your pocket. The next time you book a shipment, try one of the tips above – you’ll notice the difference right away.