The Postal Service is planningto end COD mail to home addresses.
Under current policy, COD — officially “Collect on Delivery,” aka “cash on delivery” — can be delivered by the carrier to an address (COD per se) or it canbe picked up by the customer at the post office, which is officially “Hold For Pick Up” (HFPU).
The home delivery option may soon be eliminated, and all COD mail will be for pick up only. The restructured service will be named “Collect on Delivery Hold for Pickup” (presumably CODHFPU for short).
If the Postal Service has its way,a service that has been around for over one hundred years will come to an end.
The USPS asks, thePRC defers
In October 2016, the Postal Service filed its notice of annual price adjustments for special services products with the Postal Regulatory Commission. The notice included a proposal to end COD for home delivery. At the same time, the Postal Service also published a “proposed rule” in the Federal Register “proposing to make Hold For Pickup the only delivery method for Collect on Delivery items.”
Under the new service, COD items would be addressed to the delivery address of the recipient’s post office, and the recipient would receive a notification message to pick up the item at the post office.
Last week, the Commission issued its Order On Price Adjustments For Special Services Products And Related Mail Classification Changes (December 15, 2016).
The Commission rejected the proposed change in COD because itdid not simply involve a price adjustment. Instead, changing COD as proposed was seen as a “significant classification change” and thus outside the scope of the price adjustment docket.
That will not benot the end of the matter. The Postal Service is likely to return to the PRC in 2017 with a request to change COD in an “appropriate proceeding.”
The potential impacts
The number of customers who might be affected by such a change to COD is difficult to determine, and the Postal Service provided no numbers in its request to the PRC about how many people actually get home delivery for COD. As the Public Representative noted in hercomments on the rate adjustment, the Postal Service provided “no evidence . . . as to the proportion of COD that is manifested through home delivery.”
One can get some sense of the potential impact, however, by looking at the Postal Service’s the2015Cost & Revenue reportand theRevenue, Pieces, and Weight report for 2016.The reports show that there were 319,000 pieces of COD in FY 2014; 346,000 pieces in 2015;and 201,000 pieces in FY 2016. (Thereports do notindicate how many COD pieces were delivered to home addresses.)
Given that total mail volume for 2016 wasnearly 158 billion pieces, the volume for COD was obviously relativelysmall. And given that total USPS revenue in 2016 was over $71 billion, the $2 million generated by COD (down from about $3.4 million in 2015) was also relatively insignificant.
The Postal Service nonetheless cites saving money as the main reason forthe proposed changes in COD. As the proposed rule in the Federal Register states, the Postal Service anticipates that this change will eliminate costs “related to obtaining payment from the customer at the time of delivery, redelivery attempts when the customer is not home or does not have the payment available, and the risks inherent in carriers transporting payments back to the Post Office.”
The notice provides no data on these costs or risks. Considering how small the COD home delivery volume probably is, however, the savings will probably be extremely small as well.
The burden on customers, however, could be significant.
As the Public Representative observes, “The changes will negatively affect those who rely on home delivery and payment together. The changes may fall especially hard on those living in smaller communities that rely on rural carrier service.”
ThePublic Representative also notes that the Commission, in reviewing the changes to COD, shouldconsider whether this proposed change is contrary to the policy of “provid[ing] a maximum degree of effective and regular postal services to rural areas, communities, and small towns where post offices are not self-sustaining” [39 U.S.C. § 101(b)].
ThePublic Representative doesn’tmention it, but another problem is that the post office to which a rural customer may need to travel for COD pick up is likely to be a POStPlan office, open only two, four, or six hours a day. Picking up a COD order may not be sosimple.
A real benefit
TheU.S. Post Office Department officially launched Rural Free Delivery in 1896, and for the first time folks in rural areas could sharewhat city dwellers had enjoyed since 1863 — the convenience of home delivery.
On January 1, 1913, Parcel Post Service was introduced, thus allowing customers, both rural and urban, to send and receive packages without having to travel to a post office.
Six months later, on July 1, 1913, the Post Office Department introduced the collect-on-delivery service. According to the Postal Museum website, COD increased the quicklygrowing popularity of Parcel Post, anddespite the extra steps and regulations it entailed, COD“was seen as a real benefit to the proliferating mail order business in the country.”
click on image for larger view
Initially the maximum amount that could be collected was $100, but that amount expanded over the years to its current maximum of $1000.
Thanks to COD, writes thePostal Museum, customers “don’t have to put their wants and wishes completely on hold if they are temporarily strapped for money. COD, often called cash on delivery, buys the time to scrounge up dollars and cents while the package winds its way through the mail.”
COD can be good for sellers, too. “For the seller,” writes the Postal Museum, “COD means they do not have to extend credit to customers. Indeed, COD gives sellers the assurance they will receive full payment for the items with the post office acting as the financial middleman.”
While the Postal Service clearly wants to change COD toCollect on Delivery Hold for Pickup, the agency does not seem interested in ending the service completely, and in fact in it has recently made several improvements to COD. For example, asnoted in this USPS report to the PRC from last year, businesses can now have payments transferred electronically from the Postal Service to their financial institution soon after the Postal Service receives payment from the customer.
“Collect on Delivery provides businesses a more convenient way of arranging transactions with customers with unique payment needs,” says New Products and Innovation VP Gary Reblin, as quoted in that report.
In an era of credit cards and e-commerce, when ordering on Amazon couldn’t be easier, it may seem that COD is a relic of a bygone era. But there are tens ofthousands of customers who depend on COD or who simply prefer it to other ways of paying.
COD is a good way for buyers to protect themselves against online scams designed to get theircredit card information, and it allows buyers to see the product delivered in good condition before they pay.
Many COD customersalso benefit by having the delivery go directly to their door rather than to the post office. Theymay not havehave a car, or they may be seniors who can’t drive, or perhaps they are among the millions of Americanswho don’t have a credit card. There are more of them than you might think. According to a 2014Gallup poll, 29% of Americans do not own any credit cards.
If the Postal Service’s proposal is approved, many of its customerswill soon need to find a way to get to the post office to pick up their COD packages. After over a century, true COD will be a thing of the past.
(Image credits: Postal Museum)
FAQs
The Postal Service plans to end COD home delivery? ›
The Postal Service is planning to end COD mail to home addresses. Under current policy, COD — officially “Collect on Delivery,” aka “cash on delivery” — can be delivered by the carrier to an address (COD per se) or it can be picked up by the customer at the post office, which is officially “Hold For Pick Up” (HFPU).
Does the post office still deliver COD? ›Any article sent COD can also be sent by Priority Mail Express® when a delivery signature is requested. The maximum amount collectible from the recipient on an individual article is $1,000, and indemnity for an article is limited to $1,000. Priority Mail Express® postage and the proper COD fees must be paid.
Is the post office getting rid of first class mail? ›February 10, 2023
As part of its strategy to enhance its shipping offerings, USPS has notified the Postal Regulatory Commission of its intention to replace First-Class Package Service with USPS Ground Advantage.
The price changes have been approved by the Governors of the U.S. Postal Service. The price for 1-ounce metered mail will increase to 63 cents, and the price to send a domestic postcard will increase to 51 cents. A 1-ounce letter mailed to another country would increase to $1.50.
What does COD mean in the post office? ›Any mailer may use collect on delivery (COD) service to mail an article for which the mailer has not been paid and have its price and the cost of the postage collected from the recipient. If the recipient pays the amount due by check payable to the mailer, the USPS forwards the check to the mailer.
Why is COD cash on delivery unavailable? ›Cash on Delivery is disabled for your account
Buyers who have a high percentage of failed deliveries will not be able to use Cash on Delivery. The COD deactivation will be lifted automatically once you have more successful deliveries in your account.
Cash on Delivery (CoD) mail is returned after 72 hours if the recipient takes no action. If gold is not received, your items will be returned normally when the message expires in 72 hours.
Are USPS mailboxes being removed? ›VERIFY: Yes, the USPS is removing blue mail collection boxes because of vandalism. "The boxes in question may have sustained damages, and as a result, mail could not be securely deposited."
What the longest first class mail can take? ›Estimated delivery time is one (1) to five (5) days for First-Class Mail and First-Class Package Service, and begins on the date postmarked. In some instances, such as a short distance between the sender's and recipient's ZIP Codes™, delivery can possibly occur in one day.
What's better than first class mail? ›Priority Mail is the USPS's fastest shipping service. Think of it as being similar to Amazon Prime's 2-day shipping, but with flat rates on packages up to 70 lbs. Because of the faster speed, it's more expensive than First Class Mail.
What major changes is USPS making to your deliveries starting Jan 22? ›
This will go into effect on Jan. 22 as well, and overall service prices for Priority Mail will increase by 5.5 percent. Priority Mail Express will increase by 6.6 percent and First-Class Package will increase by 7.8 percent.
Is the USPS slowing down? ›What's causing the USPS delays? There are two main reasons for the USPS delays. First, the postal service is strained by the increased shipping volume resulting from the COVID-19 pandemic. Second, recent changes implemented by USPS Postmaster General Louis DeJoy have resulted in slowdowns.
What are the new USPS service standards? ›Current standards require 3-day delivery for any destination within the contiguous U.S. with a drive greater than 6 hours — whether it's 300 miles or 3,000 miles. Attempting to meet these standards led to an over-reliance on air transportation, which is less reliable and more costly than surface transportation.
What are the disadvantages of cash on delivery? ›The cons of COD for businesses are that there is a greater risk that goods will be refused on delivery, and there are costs involved in returning items. For buyers, it may be more difficult to return items if they have already paid for them at delivery.
Can I have something shipped to the post office instead of my house? ›Yes - you (the addressee) have the option to send your eligible package to a different address or to a Post Office™ for pickup, but there is a postage fee.
What are the advantages of cash on delivery? ›Safe and Flexible Payment Option for the Customer
Cash on Delivery (COD) allows the customer to make the payment after receiving the product in hand- which is the most substantial advantage of this mode of payment. In other words, with Cash on Delivery (COD), there is no risk of losing money.
If you have added Marketplace seller items to your order as some sellers don't accept COD as a payment method. If you have frequent past order cancellations and delivery refusals, COD might not be available. If you want to purchase an extended warranty.
What to do if COD is not available? ›You can either provide an alternate address with a different pincode or make a payment online. Alternatively, you can make the payment online or if you don't have a card, then your option would be to deposit the cash in our bank account.
What happened to shipment COD? ›As to why Shipment 24/7 was initially removed from 2019's Modern Warfare, here's the reason. On January 11, 2023, Infinity Ward removed the game mode from MW's rotation. That's owing to the fact that players could rake in kills by jumping around and grinding out camos. It was one of the fastest ways to reap XP.
How long does COD keep? ›Raw fish and shellfish should be kept in the refrigerator (40 °F/4.4 °C or less) only 1 or 2 days before cooking or freezing. After cooking, store seafood in the refrigerator 3 to 4 days. Any frozen fish or shellfish will be safe indefinitely; however, the flavor and texture will lessen after lengthy storage.
How long does COD take to deliver? ›
Print. Typically orders are dispatched by the Distribution Centers within 2-5 working days (personalized items may take longer). During busy periods this can take longer.
How long do mail trucks stay out? ›All deliveries should be made by 5:00 p.m. local time Monday through Saturday. Unusual circumstances (such as traffic, staffing fluctuations, severe weather, natural disaster, changes in carrier route, etc.) can cause deliveries to be made after this time.
Why are there no mailboxes anymore? ›There has been a significant decline in mail volume as fewer Americans send letters and cards or utilize alternative delivery services for packages. USPS mailboxes in many areas have simply outlived their usefulness making the remaining boxes even more costly to maintain. USPS is in dire need of reforms to stay afloat.
Why are US mail boxes being removed? ›USPS to temporarily remove more than a dozen mailboxes from SoCal streets due to potential unrest.
Is it illegal to leave mail in a mailbox? ›Secondly, the Postal Service wants to ensure the integrity of our customer's mailbox. That's why only Postal Service personnel are authorized to place mail in or remove mail from mailboxes. In fact, U.S. Postal Inspectors advise customers to report people going mailbox to mailbox who are not postal employees.
What is the slowest mail? ›USPS Parcel Select Ground is the slowest and cheapest USPS shipping service for mailing large and heavy items that exceed package dimension and weight limits.
What time of year is mail busiest? ›December 15 marked the busiest mailing day of the year as people dispatch holiday cards and presents to friends and relatives across the country.
Is there a limit to how much you can mail? ›Maximum Size
USPS Retail Ground pieces may measure up to 130 inches in combined length and girth (but will be charged oversized prices). Regardless of the size of the mailpiece, the maximum mailable weight of any mailpiece is 70 pounds. Some classes of mail have lower weight limits.
Maximum weight for First-Class Mail letters is 3.5 oz; for large First-Class Mail envelopes and parcels, the maximum weight is 13 oz. All postcards and envelopes (or flats) must be rectangular, otherwise an additional charge may apply.
Why can't I print first class postage on USPS? ›Sometimes, first class is simply not available. You might try shipping on a weekend or have a package that exceeds the weight limit. You may also not have an account setup to print the labels. Ultimately, first class shipping has more barriers to printing than standard shipping options.
Should I do first class or priority mail? ›
USPS First Class Mail is typically used for smaller, lighter parcels—weighing under a pound—with items whose insured value is not very high. Items over a pound and/or items of higher value work better with Priority Mail. *Exceeding these maximum restrictions may result in a $100 charge applied to you by the USPS.
Why is the USPS in crisis? ›The 2020-2021 United States Postal Service crisis was a series of events that caused backlogs and delays in the delivery of mail by the United States Postal Service (USPS). The crisis stems primarily from changes implemented by Postmaster General Louis DeJoy shortly after taking office in June 2020.
Will USPS try to deliver again? ›When someone is normally available to receive parcels, but an ordinary parcel (i.e., a parcel without any extra services) cannot be delivered on the carrier's first attempt, a second delivery attempt is made the next working day and no PS Form 3849 is left on the initial attempt.
Is the USPS getting new mail trucks? ›The U.S. Postal Service will buy 66,000 vehicles to build one of the largest electric fleets in the nation, Biden administration officials announced Tuesday, turning to one of the most recognizable vehicles on American roads — boxy white mail trucks — to fight climate change.
Will USPS go to 5 day delivery? ›USPS Domestic Delivery Times
USPS delivery times for addresses within the U.S. vary by shipping service, from overnight with Priority Mail Express, to over 5 days with Parcel Select Ground.
The United States Postal Service will slow delivery times for a third of its first-class packages in an effort to cut costs and its dependency on air transportation amid financial struggles. The move — effective May 1 — is part of the Postal Service's 10-year plan to reduce more than $100 billion in projected losses.
Is the USPS suspending service in 3 states? ›Today, the USPS has announced to temporarily suspend service in 3 states: South Dakota, New York, and Iowa.
What 5 states is USPS suspending services in? ›23 to warn customers about disruptions in five different states: Minnesota, South Dakota, North Dakota, Nebraska, and Iowa. According to the USPS, multiple post offices in each of these states are now temporarily closed to customers.
What is the rule of 3 USPS? ›Appointing officials are required to select the applicants whose qualifications make them the best fit to the positions for which they are being considered. In order to do this, they must use the rule of three when making selections (see 623 and 625).
How many levels does the USPS have? ›The Postal Service ranks each district into one of five size categories—Major, Metro, and Levels 1, 2, or 3—with Major being the largest. The category determines the executive administrative schedule (EAS) pay level of the respective district's functional managers.
What are the disadvantages of COD? ›
One of the main limitations of the COD test is its inability to differentiate between biodegradable and biologically inert organic matter on its own. The use of chemicals such as chromium and strong acids produce hazardous liquid waste, which requires careful disposal.
Can I open the package before paying COD? ›Frequently Asked Questions about CODs. Can I open the package before paying COD? No, opening packages before paying the COD is strictly prohibited.
Is UPS COD safe? ›This payment and shipping method is safe, but with any transaction there are still risks involved. The buyer or customer has the advantage of not having to pay for a product until the package arrives. However, this doesn't guarantee that the items aren't faulty or that there hasn't been an error with the order.
Can I have Amazon packages delivered to the Post Office? ›Does Amazon Deliver To Post Office Boxes? The short answer is yes, Amazon does ship to PO boxes, but whether you will actually get your parcel in your PO box or not depends on how you fill out the address during checkout.
Why won't USPS deliver to my house? ›Sometimes USPS won't deliver to your home if it's located in a rural area, or if it's in a place where there aren't many other homes around. USPS needs to deliver mail and packages to every single residential address in the country, which can get fairly time-consuming.
Will USPS deliver mail if names on mail and mailboxes don t match? ›Without a specific reason to the contrary, mail sent to an address will be delivered. Mail is delivered to residential or business addresses even if the name on the mailpiece is different than the known residents.
What is risk free COD? ›How it works? This plug-in is to avoid the risk of Cash on Delivery (COD) orders, by enabling the advance payment option based on the user restriction category can enable or disable the COD option to the customers.
How does COD work with USPS? ›COD is used by senders who want to collect payment for merchandise and/or postage and fees when the item is delivered to the receiver. Sender pays postage plus fees at time of mailing. The mailer guarantees to pay any return postage, unless otherwise specified on the mail. Amount collected may not exceed $1,000.
How do you control cash on delivery? ›The best way to manage COD orders is to set a minimum and maximum purchase limit for the items. The threshold value will help minimize COD transportation costs and make delivery hassle-free. As a result, buyers will try to purchase more to receive the COD option, and you won't risk high-value items for COD.
How do I get COD delivery? ›How Does Cash on Delivery Work? Buyers place an order, for example, on a website, and request delivery. The customer does not make payment while ordering the item and chooses cash on delivery as a payment method. Once the order is placed, an invoice is prepared by the seller, which is attached to the parcel.
Does FedEx still do COD? ›
C.O.D. is available with the FedEx Standard OvernightTM and FedEx EconomyTM services only. Note: C.O.D. shipments will be booked only for customers who have a valid shipper account.
Can you open a COD package before paying? ›Frequently Asked Questions about CODs. Can I open the package before paying COD? No, opening packages before paying the COD is strictly prohibited.
Can I refuse delivery for COD? ›CAN A CUSTOMER REFUSE TO PAY AND RECEIVE FOR A COD ORDER? Yes, but the only valid reason to refuse to receive and pay for a COD order is for wrong product/s or damaged products delivered (ie. orders delivered are not what was actually ordered).
What is the limit of COD in post office? ›Cash on Delivery Option: In order to meet the requirement of bulk customers for collection of amount for costlier goods, Cash on Delivery facility is available which provides collection of amount up to Rs. 50,000/- at the time of delivery of consignments. Why Use COD Facility ?
Does Amazon do COD? ›You can pay for Cash on Delivery orders using cash at the time of delivery. Cash on Delivery is available as a payment method for fulfilled by Amazon and some seller fulfilled items.
Do UPS deliver cash on collection? ›Description. UPS will attempt to collect the amount shown on the C.O.D. tag or package label, and then send the payment to you. If UPS cannot collect the payment after three attempts, the package will be returned.
Can you send cash through UPS? ›Shipments prohibited by law. Bank bills, notes or currency.
What to do if you don t want something shipped to your house? ›Package lockers are another good solution if you don't want your packages to come to your door. Some package lockers are completely contact-free. You can arrange for the delivery driver to drop off the package inside a locker that's convenient for you, then retrieve your package once delivery has been made.
Why cash on delivery is better? ›Wider customer reach
Online sellers that offer COD option can reach more customers, even from remote places. This is especially true for places that have limited access to the internet, or even ATMs and banks. Limiting your market to buyers who can only pay in advance can be detrimental to your sales in the long run.
Pay on Delivery isn't yet available for all pin codes. This is due to limitations of courier services we use. For more details on the Pay on Delivery limit for a specific order, please visit the product details page. Pay on Delivery will only be available for some items under Lightning Deals.
Can I pay COD with cash? ›
Types of payment methods for COD
Cash: Any delivery person or courier can also accept cash as payment for an order. Check: This method is less secure for sellers, as you won't know if a check has bounced until after the customer has received their order.