Q&A

What is cash-on-delivery (COD) and why does it dominate in Algeria?

Quick answer

Cash-on-delivery (COD) means the customer pays the courier in cash when the parcel is delivered, not by card upfront. It dominates in Algeria (~85% of orders) due to low card penetration, a cash culture and distrust of online prepayment. So any successful Algerian store must be built around COD.

How it works in practice

The customer orders online without paying, the store ships via Yalidine, the courier delivers and collects cash, then the carrier remits the amount to the merchant minus its fee. The store never touches the customer’s money directly.

Why Algeria specifically

Low card usage (CIB/Edahabia growing but limited online), an entrenched cash culture, and distrust of prepayment fraud. The result: customers only trust pay-on-sight.

The flip side: refusals

COD flexibility has a cost: ~32% of orders are refused or never received. Confirmation and fake-order detection tools (like Mystoq’s FakeShield) are not a luxury but a necessity for profitability.

Last updated: 2026-05-26 · Source: Mystoq Algerian e-commerce dataset · CC-BY

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