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Yes, cash on delivery still exists in Canada through Canada Post Collect on Delivery, but LetterAgent labels cannot cover it: LetterAgent provides prepaid Xpresspost labels only. COD costs extra, carries limits, and is rarely the best choice for a small seller today.
Cash on delivery means the recipient pays when the parcel arrives, and the carrier hands the money over to the sender afterward. It made sense when few people had bank accounts or trusted paying a stranger in advance. Today, online payment options are cheap and common, and COD's drawbacks have pushed most sellers away from it. It still has a place, but it is a narrow one.
At a Canada Post outlet, you send the parcel as a Collect on Delivery item and state the amount the recipient must pay. The recipient pays at pickup or on delivery, by a payment method the outlet accepts, and Canada Post forwards the collected amount to you, minus a fee. If the recipient refuses the parcel, it comes back to you, and you are out the shipping cost in both directions.
Two points surprise first-time COD senders. First, the amount you can collect has a ceiling, so COD does not suit high-value items. Second, the money does not reach you at once: it arrives after the carrier processes the collection, not the moment the recipient pays. Check the current ceiling and fee at the counter before you commit, since both can change.
| Option | How you get paid | Main risk |
|---|---|---|
| Collect on Delivery | Carrier collects from recipient, then forwards it to you | Refused parcel: you pay shipping both ways and get nothing |
| Payment before shipping | Buyer pays by card or transfer before you mail | Buyer worries about a seller who never ships |
| Marketplace checkout | Platform holds or releases payment under its rules | Platform fees and its dispute process |
| E-transfer on delivery | Buyer sends an e-transfer when the parcel arrives | No carrier enforcement if the buyer never sends it |
Refusals are the biggest reason. A buyer who ordered on impulse, found the item cheaper elsewhere, or simply changed their mind can refuse a COD parcel with no penalty. The seller then pays to get the parcel back and has an opened, travelled item to resell. With payment in advance, a buyer who changes their mind still has to go through a return process, which filters out most casual refusals.
Cash handling is the second reason. COD adds a fee, a paper trail, and a wait for the money. A seller who ships often ends up tracking a string of small incoming payments instead of one clean payout. For a business, that bookkeeping alone can cost more than the fee itself.
COD can still fit when the buyer cannot pay online, for example a buyer who pays only by cash or money order, or when the two parties already know and trust each other and COD is simply the habit they prefer. Some repair shops and parts suppliers use it for a customer who is picking up a repaired item and paying at the counter anyway.
It also suits a one-off sale where setting up online payment feels like more work than the sale is worth. Even then, ask the buyer to confirm the total, including the COD fee, in writing before you ship. A buyer surprised by the total at the door is a buyer likely to refuse.
First, confirm the recipient's full name, address, and phone number, and tell them the exact total and the expected delivery window. Second, pack well and describe the item accurately, since a buyer who opens a parcel that does not match the description has a fair reason to refuse. Third, keep the COD receipt and tracking number until the money reaches you, since that receipt is your proof of the amount collected.
One more caution: never send a COD parcel to a buyer who will not confirm the order. An unconfirmed COD parcel is the most likely kind to be refused, and you will pay for the round trip.
Cross-border COD is a different story. US carriers have largely dropped collect-on-delivery services for parcels, and Canada Post's COD service is aimed at domestic delivery. Shipping COD across the border also adds customs and duty questions that COD does not solve: the recipient may still owe duties on top of the COD amount. For cross-border sales, payment before shipping is the practical standard.
No. LetterAgent provides Canada Post Xpresspost shipping labels for parcels within Canada, up to 5 kg, prepaid through a one-time Stripe payment. You ask your AI assistant for a label, approve the exact quoted price, and receive a label PDF. COD is not part of that service, so a COD parcel needs to go through a Canada Post outlet counter instead.
Ready to ship it? Get a shipping label with LetterAgent: describe it to your AI assistant, approve the exact quoted price, and get your label.
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