Manage Magento 2 Cash on Delivery Extra Fees: Top 5 Extensions

• Why Do Store Admins Need to Set Cash on Delivery Extra Fees in Magento 2?

• Management of COD Extra Fees on the Sales Order View Page in the Admin Dashboard

• Features of a Good Offline Payment Method for Setting Up Additional Fees for COD in Magento 2

• How to Customize and Enable the COD Feature in Magento 2 via Zip Codes?

• Top 5 Magento 2 Extra Fee Extensions for Cash on Delivery Methods

• Best Practices for Charging Additional Fees Using a CSV File of Price Rules in Magento COD

• Benefits of Implementing Extra Fees COD in Magento

• Troubleshooting Common Magento COD Issues When Canceling Customers’ Orders from Inconvenient Locations

• Testing COD Fee Delivery Payment Methods for Certain Shipping Carriers when Receiving Orders

• FAQs

• Summary

Why Do Store Admins Need to Set Cash on Delivery Extra Fees in Magento 2?

1. Risk Management

i. Operational Security

Store admins can implement strategic COD fees. It allows them to protect against order cancellations and delivery rejections. The extension enables the calculation of fees either as:

• Fixed amounts
• Percentages of the total order

Implementing strategic COD fees allows store admins to manage financial risks effectively. For instance, if historical data shows high cancellation rates in specific regions, admins can increase the COD fee for those areas. It not only discourages non-serious buyers but also compensates for potential losses from failed deliveries. By analyzing past order data, a store can adjust fees dynamically. It ensures that they align with the risk profile of different locations.

ii. Geographic Control

Admins can manage risk by:

• Setting different fees for specific countries
• Controlling availability by region
• Importing fee rules via CSV files

2. Customer Trust Enhancement

i. New Market Penetration

Cash on delivery payment method helps stores reach customers who:

• Feel comfortable about online payments
• Prefer inspecting products before payment
• Don't have access to digital payment options

Cash on delivery (COD) is particularly appealing in markets where:

• Online payment adoption is low
• Customers are wary of sharing credit card information

For example, in regions with limited banking infrastructure, customers prefer to pay cash upon receiving their products. It builds trust as they can inspect the product first. Also, it reduces anxiety about online purchases. By offering COD, stores can tap into these markets and increase their customer base.

ii. Transparency Benefits

The module displays all COD charges clearly:

• During checkout process
• In customer dashboards
• On order-related documents

Pricing transparency is key to customer satisfaction. When customers see all applicable charges upfront, they reduce confusion and build trust.

For instance, if a customer knows they will incur a COD fee before completing their order, they are less likely to abandon their cart due to unexpected costs later in the process. This clarity can lead to higher conversion rates. It allows customers to feel more informed and secure about their purchases.

3. Business operations optimization

i. Cost Recovery

Handling costs can significantly impact a store's bottom line. It is especially seen in COD orders that may require additional logistics management. Store admins can effectively manage:

• Handling costs for special packaging
• Additional labor expenses
• Delivery-related operational costs

For example, if a store provides special packaging for fragile items shipped via COD, these costs need to be accounted for in pricing strategies. Stores can recover these costs by implementing additional fees specifically for COD orders. This process allows them to maintain profitability without compromising service quality.

ii. Administrative Efficiency

Automation saves time and reduces human error in fee management. The extension simplifies operations through:

• Automated fee calculations
• Bulk rule updates
• Efficient integration with existing systems

For instance, when a store admin updates pricing rules via CSV files, it allows for quick adjustments across multiple products or regions without manual entry. This efficiency means that admins can focus on strategic tasks rather than getting bogged down in repetitive data entry. It ensures that fees are applied consistently across all transactions, enhancing operational reliability.

4. Revenue Generation Opportunities

i. Market Expansion

Implementing cash on delivery extra fees helps:

• Target regions with low digital payment adoption
• Reach cash-preferring customers
• Build trust in new markets

ii. Sales Growth

The payment method contributes to:

• Higher conversion rates
• Reduced cart abandonment
• Increased customer confidence

Management of COD Extra Fees on the Sales Order View Page in the Admin Dashboard

1. Order Management Interface

Feature	Description	Location in Admin Panel
Fee Display	View COD charges applied to orders.	Sales > Order View > Payment Information
Documentation Integration	Access COD fees on invoices and credit memos.	Sales > Invoices/Credit Memos
Order Status	Track COD payment status and updates.	Sales > Orders > View

2. Fee Management Controls

Function	Capability	Access Point
Fee Modification	Adjust COD charges post-order.	Sales Order View Page
Tax Calculation	View tax implications on COD fees.	Order Totals Section
Payment Verification	Confirm COD payment receipt.	Order Payment Information

3. Reporting Features

Report Type	Information Displayed	Navigation Path
Order Summary	Implement a complete breakdown of COD fees.	Sales > Orders > View > Order Totals
Financial Reports	Analyze COD fee impact on revenue.	Reports > Sales > Orders
Customer History	Track customers' COD usage patterns.	Customers > All Customers > Order History

4. Document Management

Document Type	Fee Information	Location
Invoices	Itemized COD charges	Sales > Invoices
Credit Memos	COD fee adjustments	Sales > Credit Memos
Order Comments	COD-related notes	Order View > Comment History

Features of a Good Offline Payment Method for Setting Up Additional Fees for COD in Magento 2

1. Fee Management Capabilities

i. Flexible Calculation Methods

The extension should support multiple fee calculation options, including:

• Fixed amount charges for predictable costs
• Percentage-based fees for order value scaling

ii. Rule-Based Configuration

Store owners need granular control through:

• CSV file import/export for bulk fee management
• Order value thresholds for different fee tiers
• Customer group-specific pricing rules in Magento

2. Geographic Control Features

i. Location-Based Settings

The module must include:

• Country-specific fee configuration
• Region-based availability controls
• Zip code verification systems

ii. Multi-Store Management

Advanced features should support:

• Store-view specific settings
• Multi-currency compatibility
• Market-specific fee structures

3. Administrative Controls

i. Backend Management Tools

Integrated administrative features:

• Detailed order tracking capabilities
• Real-time fee modification options
• Automated calculation systems

ii. Transparent Fee Display

Key visibility features include:

• Clear fee presentation during checkout
• Detailed breakdown in order summary
• Integration with invoices and credit memos

How to Customize and Enable the COD Feature in Magento 2 via Zip Codes?

1. Basic Configuration Settings

Feature	Description	Implementation Details
Zip Code Validation	Enable/disable COD for specific postal areas.	Configure through the admin panel using the CSV import option.
Fee Calculation Methods	Implement fixed amount or percentage-based charges.	Set different rates for different zip codes.
Geographic Controls	Set up country and region-specific settings.	Manage through store configuration.

2. Advanced Features

Functionality	Configuration Options	Benefits
Rule-Based Management	Import/export via CSV files.	Bulk update capabilities for multiple zip codes
Delivery Time Estimation	Set estimated delivery days.	Enhanced customer experience with clear timelines
Fee Display Settings	Configure visibility on checkout.	Transparent fee presentation during purchase

3. Customer Experience Elements

Feature	Implementation	Purpose
Availability Checker	Frontend widget	Allows customers to verify COD availability
Fee Transparency	Checkout page display	Shows all applicable charges clearly
Order Documentation	Invoice and email integration	Complete fee breakdown in all documents

4. Administrative Controls

Control Type	Capabilities	Management Options
Backend Management	Detailed order tracking	Monitor COD orders and fees in Magento.
Fee Modification	Real-time updates	Adjust fees based on business needs.
Multi-store Support	Store-specific settings	Configure different rules per store view.

Top 5 Magento 2 Extra Fee Extensions for Cash on Delivery Methods

1. Magento 2 Cash on Delivery Extension Pro by Bootsgrid

Bootsgrid Magento 2 Cash on Delivery Extension Pro enables store owners to offer customers the convenience of paying cash upon receiving their products. It allows additional fees to be set for the Cash on Delivery (COD) payment method.

Customers can use their zip code to check the availability of COD for their location. This extension also provides easy customization through the backend. It restricts COD availability to specific locations based on zip codes. Then, it limits it to particular shipping methods.

Features

• Admin can enable or disable the module through store configuration.

• Admin can use the Cash on-delivery (COD) payment method.

• Admin can set an extra fee for the COD payment method as follows:

  • Fixed amount
  • Percentage of the cart subtotal (excluding or including taxes)

• Admin can customize the Cash on Delivery extra fee label displayed in the order summary block at checkout.

• Admin can restrict Cash on Delivery availability by zip code.

• Admin can validate customer data for COD by setting restrictions on either the:

  • Billing address
  • Shipping address

• Admin can make COD payment available only for specific shipping methods.

• Customers can check COD availability for their location using their zip code.

• Admin can display success or failure messages on the checkout cart page.

Pricing

Starts from $40.26

2. Delivery Extra Fee for Magento 2 Extension by MageComp

MageComp Delivery Extra Fee for Magento 2 Extension enables store merchants to calculate and apply additional charges for COD payment methods effortlessly. They can also display COD extra fees in various order documents.

Features

• Apply surplus fees for Cash on Delivery (COD) orders.
• Calculate additional fees as a fixed amount or percentage.
• Specify countries where COD additional charges apply.
• Customize the title for COD fees displayed on the storefront.
• Set a new order status when COD is selected.
• Arrange the sequence of COD payments with other payment methods.
• Configure price rules and import/export them via CSV file.
• Display extra fee details on the checkout page.
• Allow customers to view COD charges.
• Enable admin to view COD charges for specific orders.
• Include the extra fee in invoices, credit memos, and refunds.
• Easily apply extra fees for cash on delivery payments.
• Enable COD payment for specific countries.
• Calculate payment fees as a fixed amount or percentage.
• Import and export pricing rules using a CSV file.
• REST API and GraphQL API support available.
• Hyvä Addon support available.
• Compatible with Hyvä Luma Checkout and Hyvä React Checkout.

Pricing

• Community Edition + GraphQL- $118.00
• Commerce on-prem (EE) Edition + Professional Installation + Hyva Addon- $296.00
• Commerce on Cloud Edition + Installation & Setup + GraphQL & Hyva Addon- $356.00

3. Magento Cash On Delivery Order Total Extension by MageAnts

MageAnts Magento Cash on Delivery Order Total Extension enables store owners to apply additional charges for various services. It also displays them on the checkout page. This plugin allows store owners to charge extra for services such as:

• Gift wrapping
• Cash on delivery
• Specific payment methods
• Expedited delivery

Features

• Accurately apply various Magento 2 order fees.
• Add different types of fees, including product, category, and shipping fees.
• Display extra fees on the checkout and shopping cart pages.
• Include additional fees in total orders and Magento 2 payment fees.
• Enable tax calculation for each extra fee, either included or excluded.
• Apply mandatory extra fees for specific products through the admin panel.

Pricing

• Community Edition + 3-Month Free Support + Installation + Hyva- $218.00
• Enterprise Edition + 6-Month Support + Installation + Hyva- $367.00

4. Cash on Delivery Fee Extension for Magento 2 by Mirasvit

Mirasvit Cash on Delivery Fee Extension for Magento 2 makes your prices more appealing while protecting your profits. Offer lower base prices to all customers. Or apply additional fees to those opting for premium payment or shipping providers when their orders exceed standard delivery weight limits.

Features

• Apply surcharges using flexible rules based on cart or product attributes.
• Set individual surcharges for specific customer groups and store views.
• Add extra fees "per order" or "per product".
• Define surcharges as a fixed amount or a percentage of the price.
• Set minimum and maximum thresholds for surcharge application.

Pricing

• Open Source (CE) Edition + Free Installation- $149.00
• Commerce (EE) Edition + Free Installation- $318.00
• Commerce on Cloud (ECE) Edition + Free Installation- $368.00

5. Default Magento 2 COD Handling Fee by Milople

Milople Default Magento 2 COD Handling Fee Extension allows charging customers additional fees for services like:

• Gift wrapping
• Express delivery
• Insurance
• Handling
• Signature confirmation
• Customization

Features

• Extra Fee Version X: Admin can charge only one fee.

• Extra Fee Version X+: Admin can charge multiple fees.

• Extra fees are applied based on the order value.

• Admin can make fees mandatory or optional:

  • Mandatory: Applied automatically.
  • Optional: Users can choose extra services at an additional cost on the cart or checkout page.

• Extra fees can be charged in two ways:

  • Percentage of the order value (e.g., "2%" of the order total).
  • Fixed amount (e.g., "$10" added to the order total).

• Extra fees can vary based on the selected payment method.

• Using the Magento 2 Fee Manager, users can apply extra fees based on their payment method choice.

• With the Magento 2 Extra Fee extension, extra fees can also be based on the minimum or maximum order total.

• With the Magento 2 Handling Fees extension, charged extra fees are clearly labeled.

• Extra fees are displayed on the following:

  • Cart page
  • Checkout page
  • My Account Order section
  • Backend order information
  • Invoice
  • Credit memo

Pricing

• Magento Community Edition + Free Installation- $11.62
• Magento Enterprise Edition + Free Installation- $156.94

Best Practices for Charging Additional Fees Using a CSV File of Price Rules in Magento COD

1. CSVFile Structure and Management

Component	Implementation Details	Best Practices
Fee Configuration	Fixed amount or percentage-based calculations	Structure CSV with clear headers and consistent formatting.
Geographic Rules	Country and zip code-specific pricing	Include postal code ranges for efficient regional management.
Order Value Rules	Fee calculations based on subtotal	Set different fee tiers for various order values.

2. Implementation Strategy

Feature	Configuration	Benefits
Bulk Updates	Import/export functionality	Efficient management of multiple price rules
Fee Calculation	Fixed vs. percentage options	Flexible pricing structure based on business needs
Rule Validation	Automated checking system	Prevents errors in the fee application

3. Customer Experience

Aspect	Display Settings	Purpose
Fee Transparency	Checkout page visibility	Clear communication of charges
Documentation	Invoice and email integration	Complete fee breakdown in all documents
Validation	Real-time zip code checking	Immediate COD availability confirmation

4. Administrative Controls

Function	Capability	Management Options
Rule Updates	Real-time modifications	Quick response to market changes
Performance Monitoring	order tracking	COD fee effectiveness
Documentation	Automated fee inclusion	Consistent record-keeping across all documents

Benefits of Implementing Extra Fees COD in Magento

1. Revenue Optimization

i. Smart Cost Recovery

Store owners can strategically set cash-on-delivery fees based on delivery zones. It helps offset higher shipping costs in remote areas. They can implement dynamic fee structures that adjust automatically based on order value. They can also configure different COD fees for specific countries or regions. It maximizes profitability across various markets.

ii. Risk Management Benefits

The extension enables you to minimize losses from order cancellations. For example, you can implement higher COD fees in areas with historically high return rates. Advanced filtering options also let you disable cash on delivery for high-risk zip codes.

2. Customer Experience Enhancement

i. Transparent Checkout Process

The payment method displays all fees upfront on the checkout page. It eliminates surprise costs and allows customers to see a detailed order summary. For example, they can see the COD fee before finalizing their purchase.

ii. Flexible Payment Options

Adding cash on delivery payment method expands your market reach to customers who:

• Prefer traditional payment methods
• Don't have access to digital payment options
• Want to inspect products before payment

3. Operational Advantages

i. Automated Fee Management

The admin panel allows bulk fee updates through CSV file imports. Price rules can be set automatically to adjust COD fees based on:

• Order subtotal
• Product categories
• Customer groups
• Shipping zones

ii. Integration Benefits

The extension efficiently works with:

• Default Magento shipping methods
• Custom shipping carriers
• Third-party payment modules
• Tax calculation systems

4. Business Growth Opportunities

i. Market Expansion

Cash on delivery extra fee configuration helps penetrate markets where:

• Digital banking infrastructure is limited
• Online payment adoption is low
• Cash transactions are preferred

For example, in rural areas where banking facilities are scarce, customers may rely on cash payments for their purchases. This approach increases sales. It also establishes brand loyalty among consumers who feel their needs are being met.

ii. Conversion Optimization

The module contributes to higher conversion rates by:

• Building trust through payment flexibility
• Reducing cart abandonment
• Offering secure payment alternatives

Troubleshooting Common Magento COD Issues When Canceling Customers’ Orders from Inconvenient Locations

Issue	Description	Solutions
Order Cancellation Failure	Orders from specific locations may not be canceled properly due to system restrictions.	- Verify if the order is still in a 'cancelable state' (e.g., not invoiced or shipped). - Check if the payment method allows cancellation.
Inaccurate Zip Code Validation	COD may not be available for specific zip codes, leading to confusion during cancellation.	- Ensure that zip code validation rules are correctly set up in the admin panel. - Regularly update the list of valid zip codes for COD.
Refund Processing Issues	Difficulty in processing refunds for canceled COD orders.	- Use Magento's Credit Memo feature to manage refunds. - Ensure that all refund policies are clearly communicated to customers.
Customer Confusion	Customers may be unclear about why their orders were canceled.	- Provide clear communication regarding cancellation policies during checkout. - Automate emails to inform customers about their order status & reasons for cancellation.
High Cancellation Rates	Frequent cancellations from specific locations can affect business performance.	- Implement additional order confirmation steps via email or phone. - Set minimum order values for COD to reduce high-risk orders.
Logistics Challenges	Delivery issues may arise due to incorrect addresses/service limitations in certain areas.	- Regularly review and update shipping policies based on geographical challenges. - Use a delivery service that supports COD in all operational areas.
Monitor and Adjust	Keep an eye on cancellation trends and adjust policies accordingly.	- Analyze cancellation data regularly to identify patterns. - Modify policies based on insights gained from data analysis.
Enhance Communication	Clear communication with customers can reduce confusion and improve satisfaction.	- Train staff to provide consistent information. - Use multiple channels (email, SMS) to keep customers informed about their orders.
Use Technology	Leverage Magento's built-in tools and extensions to simplify the cancellation process.	- Explore extensions that enhance order management capabilities. - Use automated systems for notifications and updates.

Testing COD Fee Delivery Payment Methods for Certain Shipping Carriers when Receiving Orders

1. Key Considerations for Testing

Aspect	Description	Best Practices
Carrier Compatibility	Ensure that your chosen shipping carriers support COD.	- Check with carriers about their COD policies. - Test with multiple carriers to compare performance.
Fee Structure Validation	Confirm that the correct COD fees are applied based on order value and location.	- Set up different fee rules in the admin panel. - Use a CSV file to manage price rules efficiently.
Zip Code Restrictions	Verify that COD is only available in specified zip codes.	- Use the zip code validation feature to restrict COD availability. - Regularly update your list of eligible zip codes.

2. Testing Process

Step	Action	Notes
1. Configure Payment Settings	Navigate to Stores > Configuration > Sales > Payment Methods. Then, enable COD and set applicable regions.	Ensure all settings align with your business model.
2. Set Up Shipping Carrier Integration	Link your shipping carriers to the COD payment method.	Test each carrier's integration separately for reliability.
3. Create Test Orders	Place orders using various combinations of products, locations, and payment methods.	Monitor how the system handles each scenario, especially for high-risk areas.
4. Review Order Processing	Check how orders are processed from placement to delivery.	Look for any delays or errors in payment collection upon delivery.
5. Collect Feedback	After testing, gather feedback from customers regarding their experience with COD orders.	Use this information to refine your processes further.

3. Monitoring and Adjustments

i. Track Performance

• Regularly monitor order cancellations and returns related to COD orders.

• Adjust your policies based on customer feedback and operational challenges.

• Analyze cancellation rates and reasons for returns.

• Identify patterns that may indicate underlying issues, such as:

  • Delivery delays
  • Customer dissatisfaction with product quality

For instance, if a specific carrier consistently has high return rates for COD orders in a region, it might signal the need to switch carriers or adjust service levels. This proactive approach helps maintain customer satisfaction and reduces operational costs over time.

ii. Enhance Communication

• Clearly communicate any restrictions or fees associated with COD during the checkout process.
• Provide customers with updates on their order status, especially if there are issues with delivery.

iii. Leverage Technology

• Leverage Magento's built-in tools and extensions to simplify the testing process.
• Consider using extensions that enhance COD functionality. For example, verify customer details before confirming orders.

FAQs

1. How do customers make payments with COD?

Customers make payments in cash upon delivery. It is popular among those who prefer not to use cards. This method allows customers to inspect items before payment. It builds trust and reduces the risk of fraud.

2. Is the COD feature compatible with Magento?

Yes, the cash-on-delivery feature is compatible with Magento & integrates efficiently with Magento. Store admins can easily set it up. This feature supports various shipping carriers. It also allows for flexible fee structures based on location.

3. What does Magento allow regarding COD fees?

Magento 2 allows store admins to customize COD fees. They can set fixed or percentage-based charges. This flexibility helps manage costs effectively. Admins can also restrict COD availability by zip code. It ensures that only eligible areas can use this payment method.

4. What can a store admin do with the COD feature?

A store admin manages all aspects of the COD feature. They can configure settings, monitor performance metrics, & adjust fees based on customer feedback. They can also efficiently handle order cancellations & refunds, which enhances overall customer satisfaction.

5. How does using the Magento COD Extra Fee extension affect my store?

Using this extension, you can enhance your store's payment options. It allows for efficient cash-on-delivery transactions. Customers can choose to pay in cash upon receiving their orders. The extension also provides detailed reports on COD performance. It enables you to make informed business decisions.

6. What does the delivery extra fee allow?

The delivery extra fee allows store admins to customize shipping costs. They can charge additional fees for specific locations. This compensation compensates for higher delivery costs in certain areas and helps maintain profitability when offering COD options. Customers are informed of these fees upfront.

7. How can I check if COD is available for my area?

Enter your zip code at checkout to check if COD is available. The system will then verify whether the delivery location qualifies for COD payments. If eligible, customers pay in cash upon delivery of their orders. If not, alternative payment methods will be suggested automatically.

Summary

The Magento 2 Cash on Delivery Extra Fee module ensures you can maintain profitability by charging extra for specific payment methods, which is especially useful for locations with higher delivery costs. It allows Magento 2 store owners to:

• Improve their store’s profitability.
• Ensure efficient cost recovery, especially for high-risk or location-specific deliveries.
• Offset costs associated with COD orders.
• Manage COD charges in their store.
• Optimize their payment workflows while ensuring cost recovery for COD orders.

Explore Magento hosting services to enhance your store's cash-on-delivery payment method with extra fee features.