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Cash on delivery in Mexico: how pago contra entrega works for online stores

Mexicans pay online with cards, bank transfers (SPEI), wallets and cash at convenience stores. Cash on delivery — pago contra entrega — is smaller than these, but it is the payment many social-media sellers rely on: a buyer who sees a product in a Facebook or TikTok ad, does not know the store, and would rather pay the courier at the door. Here is how it works, what it costs, and how to sell with it.

Updated · 4 min read

How Mexican buyers pay online

MethodHow it worksGood for
Cards (debit and credit)Paid at checkoutBuyers who trust the store and have a card
Cash at a convenience storeThe buyer gets a reference and pays in cash at a storeBuyers without a card who still pay before delivery
SPEI bank transferTransfer to the seller’s CLABEHigher prices, repeat buyers
Cash on delivery (pago contra entrega)The buyer pays the courier when the parcel arrivesFirst orders from social media and ads, buyers who want to see the product first

Public figures on the share of each method disagree, and most mix cash on delivery with cash paid at stores. What sellers see in practice: COD helps most with first orders from people who found you in an ad.

Who sells with cash on delivery in Mexico

  • Brands and resellers advertising on Facebook, Instagram and TikTok.
  • Sellers of fashion, beauty, gadgets and home items at everyday prices.
  • Shops that deliver in big metro areas first — Mexico City, Guadalajara, Monterrey — where couriers can collect cash quickly.

Delivery and cash collection

Cash on delivery needs a delivery partner that collects the money and pays it back to you. Several local couriers and fulfilment services in Mexico offer it. Before you start, ask each one:

  • Which cities and postal codes do you cover with cash collection?
  • What is the fee for delivery, for collection, and for a refused parcel?
  • How often do you pay the collected money back, and how?
  • How many delivery attempts before the parcel comes back?
A Mexico City parcel label marked pago contra entrega, with the postal code, a reference between two streets, $599 MXN to collect at the door, confirmed by WhatsApp
A full address, a reference point, a confirmed order: fewer parcels come back.

Keep refused parcels low

  • Confirm every order by WhatsApp or a call before shipping — see the confirmation call script.
  • Show the full price, shipping included, before the order form.
  • Ask for a full address with postal code and a reference point (between which streets, house colour).
  • Ship fast: the longer the wait, the more buyers change their mind.

Put your real numbers, refusals included, in the profit calculator before you buy ads.

IVA and the legal side

Sales in Mexico generally carry IVA (16% standard rate). Whether and how you register depends on your situation — check with the SAT or an accountant. On CODOS Store, you can set the tax rate per country in Settings › Taxes and duties, and the tax is kept on each order.

Setting up a store for Mexico on CODOS Store

  • Choose Mexico as your store country: prices show in Mexican pesos (MXN).
  • Turn on cash on delivery, and bank transfer with your CLABE in the bank details for buyers who prefer SPEI.
  • Set delivery fees per city or one fee for the country, and free delivery above an amount.
  • Install your Facebook, TikTok or Snapchat pixel from the store settings, without code.

Language, honestly: the store’s own words (buttons, order form, checkout) are available in English, French and Arabic today — not in Spanish. You can write your product names, descriptions and pages in Spanish yourself, but the buttons will show in English. If a fully Spanish checkout matters for your buyers, keep that in mind before you choose.

More on the payment itself: running an online store with cash on delivery and the list of cash on delivery countries.

Profit calculator

Your real profit per order after delivery, refused parcels and ads — and the most you can pay per order.

Open the calculator

Questions people ask first

Is cash on delivery common in Mexico?

It is one of several cash options, smaller than cards and cash at convenience stores, but widely used by sellers who advertise on social media for first orders.

What is pago contra entrega?

Spanish for cash on delivery: the buyer pays the courier when the parcel arrives, and the courier pays the seller back later.

Is cash on delivery the same as paying at OXXO?

No. With cash at a convenience store, the buyer pays before the parcel is shipped. With cash on delivery, the buyer pays at the door.

Can I sell in Mexico with CODOS Store?

Yes: Mexico is a store country with prices in MXN, cash on delivery and bank transfer. The store’s buttons are in English, French or Arabic, not Spanish.

Themes that fit

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