How to Add a Cash on Delivery (COD) Fee on Shopify: Complete Guide for Store Owners
Adding an extra fee to Cash on Delivery (COD) orders is a common and necessary strategy for merchants in regions where COD is widely used. This article explains why COD surcharges are important and walks you through two methods to implement them in your Shopify store—highlighting the limitations of native Shopify options and offering a more reliable alternative through the Releasit app.
Cash on Delivery is a preferred payment method in many countries, often representing the majority of a store's transactions. While it helps build trust with customers, COD introduces additional costs, such as:
Courier collection fees
Higher return and failed delivery rates
Manual handling processes
To offset these costs, it's standard practice to apply a small fee to COD orders.
Unfortunately, Shopify does not support adding a COD fee directly. There is no built-in option to apply an extra charge only when a customer selects the Cash on Delivery payment method.
However, there are two available workarounds:
This workaround involves creating a special shipping rate labeled "Cash on Delivery" and associating the COD fee with it. Customers would select this rate during checkout if they want to pay with COD.
Shopify does not restrict payment methods based on shipping method.
Customers can still choose free or cheaper shipping and then select COD at checkout, bypassing the intended surcharge.
Leads to inconsistent fee collection and requires manual review of every COD order.
👉 Verdict: Not recommended for stores handling large volumes of COD orders.
To provide a reliable and automated solution, we built the Releasit Cash on Delivery Fee COD app. This app allows you to add a fixed or percentage-based fee to COD orders without needing special shipping rates.
The customer completes the checkout flow and chooses Cash on Delivery as the payment method.
The extra fee is automatically added only if COD is selected.
The fee appears on:
The Shopify order confirmation page
Customer email notifications
The Thank You page
You can also add custom instructions for COD deliveries (e.g., reminding the customer to prepare exact change).
Works natively with Shopify checkout
No need for complicated shipping rate workarounds
Supports fixed or percentage-based fees
Quick setup (less than 10 minutes)
Free to install
🔗 Install the app on the Shopify App Store: Releasit Cash on Delivery Fee COD
If you need assistance with setting up the app or have any questions, feel free to reach out to our support team directly from the app. We’re happy to help you configure the COD fee exactly as you need it.
Why Add a Fee for Cash on Delivery?
Cash on Delivery is a preferred payment method in many countries, often representing the majority of a store's transactions. While it helps build trust with customers, COD introduces additional costs, such as:
Courier collection fees
Higher return and failed delivery rates
Manual handling processes
To offset these costs, it's standard practice to apply a small fee to COD orders.
Can You Add a COD Fee in Shopify Natively?
Unfortunately, Shopify does not support adding a COD fee directly. There is no built-in option to apply an extra charge only when a customer selects the Cash on Delivery payment method.
However, there are two available workarounds:
Option 1: Add a Shipping Rate Named "Cash on Delivery"
This workaround involves creating a special shipping rate labeled "Cash on Delivery" and associating the COD fee with it. Customers would select this rate during checkout if they want to pay with COD.
Limitations of This Method:
Shopify does not restrict payment methods based on shipping method.
Customers can still choose free or cheaper shipping and then select COD at checkout, bypassing the intended surcharge.
Leads to inconsistent fee collection and requires manual review of every COD order.
👉 Verdict: Not recommended for stores handling large volumes of COD orders.
Option 2: Use the Releasit Cash on Delivery Fee App (Recommended)
To provide a reliable and automated solution, we built the Releasit Cash on Delivery Fee COD app. This app allows you to add a fixed or percentage-based fee to COD orders without needing special shipping rates.
How It Works
The customer completes the checkout flow and chooses Cash on Delivery as the payment method.
The extra fee is automatically added only if COD is selected.
The fee appears on:
The Shopify order confirmation page
Customer email notifications
The Thank You page
You can also add custom instructions for COD deliveries (e.g., reminding the customer to prepare exact change).
Benefits of Using the App
Works natively with Shopify checkout
No need for complicated shipping rate workarounds
Supports fixed or percentage-based fees
Quick setup (less than 10 minutes)
Free to install
🔗 Install the app on the Shopify App Store: Releasit Cash on Delivery Fee COD
Need Help?
If you need assistance with setting up the app or have any questions, feel free to reach out to our support team directly from the app. We’re happy to help you configure the COD fee exactly as you need it.
Updated on: 01/04/2025
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