Nachnahme

Nachnahme, or cash on delivery, is a payment method used in parcel shipping in German-speaking markets. In a Nachnahme transaction, the seller ships the goods to the customer, and the carrier collects the purchase price and any applicable fees from the recipient at the time of delivery. The collected amount is then remitted to the seller by the carrier, minus any service charges.

Process: The sender declares the COD amount (price plus shipping). The carrier attempts delivery; upon delivery, the driver requests payment in cash (and in some services may also accept card or other forms). If payment is made, the package is released; if payment is not possible or is refused, the shipment is returned to the sender.

Costs and limits: Nachnahme typically incurs an additional service fee (Nachnahmegebühr) paid to the carrier or recovered from the sender. The COD amount may be subject to limits set by the carrier. Some retailers set a maximum COD value. In some markets, cash handling risks and theft concerns exist.

Advantages and disadvantages: For sellers, Nachnahme can reduce the risk of non-payment and enable sales to customers without upfront payment. For buyers, it provides payment-on-delivery convenience but requires carrying cash. For carriers, it adds cash handling obligations and possible non-payment risk, potentially increasing delivery times and costs. The method can also lead to returns if payment is refused.

Regional use: Nachnahme remains used in Germany and some neighboring markets, particularly in mail-order and e-commerce. It has declined in popularity in some regions due to the rise of online card payments and digital wallets, but remains available from many parcel services and retailers.