Payment before delivery means the buyer pays first and the seller ships after. Pay on delivery means the buyer pays when the item arrives. For sellers, paying first is safer and cheaper. For buyers, paying on delivery feels safer. In Ghana the best approach is usually to offer both and give buyers a small reason to pay first.
What is payment before delivery?
The buyer pays online with MoMo or card, or sends money to the seller, before anything is shipped. Once the seller sees the payment, they dispatch the order. Some people call this "delivery after payment" or prepaid delivery.
What is delivery before payment?
This is the pay-on-delivery model. The seller sends the item, the buyer inspects it, then pays the rider. Search results often call it "delivery before payment" or cash on delivery. If you are new to it, start with what payment on delivery means.
Side by side
| Payment before delivery | Pay on delivery | |
|---|---|---|
| Risk of refused order | Very low | Higher |
| Buyer trust needed | More | Less |
| Seller cash flow | Money first | Money after the rider returns |
| Fee on Paylead | 4% + GH₵ 1 | 2% + GH₵ 1 |
| Works for digital products | Yes | No |
| Works for custom items | Yes, with a deposit | Poor fit |
| Failed delivery cost | None | Rider trip, often GH₵ 40 to GH₵ 80 in Accra |
Pros and cons for sellers
Paying first
- Pros: no refused deliveries, no cash handling, you only ship real orders, and it works for every kind of product.
- Cons: some buyers will not order because they do not trust you yet. The fee is higher because it includes payment processing.
Pay on delivery
- Pros: more first-time buyers say yes, and the fee is lower.
- Cons: refused and failed deliveries, rider cash to collect, stock tied up on the road, and more phone calls.
Pros and cons for buyers
Paying first
- Pros: no cash to carry, a receipt, and often free delivery or a discount.
- Cons: you pay before you see the item. If the seller disappears, you have lost money.
Pay on delivery
- Pros: you see the item before paying.
- Cons: you need the right amount ready, and some sellers charge more for the service.
Which should you choose as a seller?
Think about what you sell:
- Fashion, wigs, phones, shoes: offer both. Buyers want to inspect.
- Skincare and low-price items: lean towards paying first, because failed trips cost more than the profit.
- Custom or made-to-measure: deposit first, balance later.
- Digital products, courses, bookings: always pay first.
How do you get buyers to pay first?
- Make it easy. One checkout page with MoMo and card, and a receipt by email and SMS.
- Show proof you deliver. Reviews, photos of past orders and a tracking page.
- Give a reason. Free delivery or a small discount for paying now.
- Use deposits on expensive orders with a payment link.
- Explain protection. Tell buyers you will fix any problem.
We cover this fully in how to get customers to pay before delivery in Ghana.
How do you cut failures if you keep pay on delivery?
Show the full price including delivery, confirm big orders by call or WhatsApp, agree a delivery window, and keep a list of repeat refusers. More in cash on delivery in Ghana.
How to offer both on Paylead
On Paylead, buyers of physical products choose Pay now or Pay on delivery at checkout once you turn on COD in Store Settings → Payments (guide). Pay on delivery has no built-in deposit, so send a payment link when you want one. Your delivery fee applies across the whole store, with an optional free-delivery amount: you could set free delivery above a certain price to nudge people to order more.
Example: a GH₵ 300 order paid online costs GH₵ 13 in fees, so you receive GH₵ 287. Paid on delivery it costs GH₵ 7, so you receive GH₵ 293, but only if the buyer accepts the delivery.
FAQ
Is payment before delivery safer?
For the seller, yes. For the buyer, only if they trust the seller. Reviews, a branded checkout and a tracking page help build that trust.
What is delivery before payment?
It is another name for pay on delivery: you receive the item first and pay when it arrives.
Can I offer a discount for paying first?
Yes. On Paylead you can create discount codes and share them with buyers who pay now.
Should new sellers offer pay on delivery?
Usually yes at first, because nobody knows you yet. Once you have reviews, many buyers will pay first.
Create a free Paylead store and test both.
A simple rule of thumb
Ask one question: if this order fails, how much do I lose? If the answer is a rider trip that costs more than your profit, ask for payment first. If the item is cheap to move and buyers are nervous, let them pay on delivery. Review the rule every month using your own refused-order numbers, not a guess.
