How to Set Up Cash on Delivery in Shopify and Limit COD Orders
Running an online store means giving customers payment options they actually want to use. And while credit cards and PayPal are great, many shoppers still prefer good old cash on delivery (COD).
But here’s the thing – offering COD without limits is asking for trouble. Scammers love it, and you could end up with a ton of rejected packages eating into your profits.
In this guide, I’ll walk you through setting up COD in Shopify the right way, with smart limits that protect your business while still giving customers what they want.
What Exactly is Cash on Delivery? What you need to concern?
Cash on delivery is pretty straightforward – your customer orders online but pays when the package arrives at their doorstep. The delivery person collects the cash and brings it back to the shipping company, who then transfers it to you (minus their fees, of course).
For sellers, the COD process looks like this:
- Customer places an order and selects COD at checkout
- You process and ship the order using your normal workflow
- Delivery driver collects payment when dropping off the package
- You get paid after delivery (usually 1-2 weeks later, depending on your carrier)
While COD can boost your sales, especially in markets where people are skeptical about paying online, it does come with some headaches:
- Higher return rates (people change their minds or aren’t home)
- Extra fees from shipping companies
- Delayed cash flow (you’re paying for inventory and shipping before getting paid)
- A magnet for scammers placing fake orders
Setting Up COD in Shopify: The Easy Way
Getting COD up and running on your Shopify store is pretty simple. You’ve got two options:
Option 1: Use Shopify's Built-in COD Settings
- Log in to your Shopify Admin:
Head over to Settings > Payments. - Add a Manual Payment Method:
Scroll down to the Manual payment methods section and click on Add manual payment method. - Choose or Create COD:
If you see “Cash on Delivery (COD)” in the list, select it. Otherwise, create a custom manual payment method and name it “Cash on Delivery.” - Customize Instructions:
Write simple instructions for your customers (for example, “Have the exact change ready upon delivery”). - Activate COD:
Click Activate and you’re done!
Boom – you’re now accepting COD orders!
This method is free and simple but lacks fraud protection and advanced features – best for low volume or testing the waters.
Option 2: Use a Dedicated a free COD App (Recommended) - Snap COD
For more control and better protection, grab a specialized COD app from the Shopify App Store. One popular option is Snap COD, totally FREE, which gives you way more features than the basic setup.
How to create shipping rate for Cash on Delivery?
To reduce the risk of fraud or high-cost orders on COD, you might want to set a maximum order limit—say, no more than AED 2500. While Shopify’s basic settings don’t let you restrict COD by order total, here are a couple of workarounds:
- Open the shipping settings
- On General shipping rates, click General
- Click Add rate button
- Fill in rate name and price
- Click Done then click Save
How to Limit COD by Order Value, Weight, Specific Products or Location?
Here’s where many store owners mess up – they offer COD with no restrictions and get burned. Let’s set up some sensible limits:
Setting a Limit COD by Minimum/Maximum Order Value & Weight
Nobody wants to have delivery drivers carrying around thousands in cash. Plus, higher-value orders have higher fraud risk.
If using Snap COD, following these few steps:
- Go to the app settings
- Look for “Limit COD” on the left sidebar
- Enable “Hide based on order subtotal” and “Hide based on order weight”.
- Set up your limitation. For example, I want to limit COD for orders over $500. Select within this range > In minimum value > type “500” > in maximum value, leave it empty.
- With a limitation on weight COD, you do the same as order value based.
- And then save it and see how it works.
Setting a Limit COD for Particular Customers
Snap COD also allows you to limit groups of customers who can use the COD payment method to prevent scammers. It works based on customer tags, emails, or phone numbers. Here how it is:
- Click on the Customer field
- Select the methods you want to limit: Based on tag, customer email, or phone numbers
- Fill out your data
- Save it
Setting a Limit COD for Specific Countries
You move on to the Location tab on the Snap COD app, enable the Hide based on country > Is on this list > Browse > Select countries that you want to limit.
Setting a Limit COD for Specific Products
You can also set up limit COD payment options for specific products by using Snap COD. I think i don’t need to guide you to set up anymore because it’s so easy, similar to the above limitation types. But I will walk you through some setting conditions. You can hide COD option on checkout based on:
- Specific products
- Specific collections
- All products
- Product tags
- Product is a gift card
- Vendors
Scammer Alert: Protecting Your Business
Let’s be real – COD attracts sketchy customers sometimes. Here’s how to keep the scammers at bay:
- Verify contact info: Make phone verification mandatory for all COD orders. A quick confirmation call can save you from shipping products that will never get paid for.
- Watch for red flags like:
- Multiple orders from the same address with different names
- Orders for maximum quantities of your most expensive items
- Brand new accounts placing large orders
- Weird shipping instructions or inconsistent contact details
- Use COD apps with fraud detection: Apps like Snap COD can automatically flag suspicious orders based on past behavior patterns.
- Keep a blacklist: Once burned, twice shy. Keep a list of addresses and phone numbers that have caused problems before.
Bottom Line: COD Can Work If You're Smart About It
Cash on delivery isn’t going away anytime soon, especially in certain markets. By setting reasonable limits, screening orders properly, and understanding the true costs, you can offer this payment option profitably.
Remember—it’s all about balance. You want to give customers payment flexibility without exposing yourself to excessive risk or operational headaches.
If you’re looking for a robust, easy-to-use solution to manage COD on your Shopify store, we highly recommend giving Snap COD a try. This app not only lets you set a maximum order value but also lets you add extra fees, hide COD for specific products or regions, and even block high‑risk orders with built‑in fraud detection.
Ready to protect your store and boost customer confidence? Check out Snap COD on the Shopify App Store and start optimizing your COD process today!
Sophia Dao is a content strategist at WizzCommerce, specializing in e-commerce and Shopify solutions. With a passion for digital marketing and a keen eye for detail, Sophia creates engaging content that helps businesses thrive online. When she’s not writing, she enjoys exploring the latest trends in tech and commerce. Follow Sophia for practical e-commerce tips and the latest marketing insights!
