COD in the Gulf vs COD in Europe: 7 Differences That Change the Operation

· by Lucas Reda · in Cash on Delivery · 10 min read

Dubai skyline at sunset with the Burj Khalifa

European and Gulf cash on delivery look like the same product, but they are different operations. We compare seven points that change margin: the role of COD, payment methods, address, tax, language, calendar and regulation.

COD in Europe and COD in the Gulf share the mechanism, the customer pays on receipt, but differ in the role they play. In several European markets, cash on delivery is a buying habit and the main method. In the UAE and Saudi Arabia, it is a conversion lever alongside cards and digital wallets.

Sellers who master one region tend to carry the same recipe to the other, and that is where margin disappears. The order leaves the same way and the courier collects the same way, but almost everything around it is different: who chooses COD, why they choose it, what the consumer expects, the tax, the address, the language of confirmation and the sales calendar.

N1 supports cash-on-delivery operations in European markets and in the two main Gulf markets, the UAE and Saudi Arabia, and this post lays out what needs to change when you change region. Market data comes from public sources listed at the end. There are no internal platform numbers here, and the numerical examples are hypothetical, to show the reasoning.

Difference 1: the role of COD at checkout

In Central and Eastern Europe, payment on delivery is part of the buying habit of many consumers. ECDB research shows, for example, that the share of online stores offering cash on delivery exceeds 80% in Bulgaria and Slovakia. Note what the figure measures: it is stores offering the method, not the share of orders paid at the door. Our post on COD by country in Europe explains the difference.

In the Gulf, the trajectory is the opposite. Checkout.com's annual MENA research, from May 2024, found that regional preference for COD fell from 41% in 2020 to 20% in 2023, with about 10% in the UAE, Saudi Arabia and Kuwait. The urban Gulf consumer pays by card, Apple Pay and digital wallet without a second thought.

What changes in the operation: in Europe with a strong COD habit, the pay-on-delivery button can be the main one at checkout. In the Gulf, it works best as an alternative for the buyer who does not yet trust the store, alongside digital methods. A COD-only checkout in the Gulf loses conversion.

Difference 2: who the COD buyer is

The profile changes, and with it the refusal risk.

  • Europe (strong-COD markets): the cash-on-delivery buyer is used to the method. Refusals exist, but usually come from second thoughts, lack of cash at the moment or a gap between the ad and the product.
  • Gulf: the COD buyer is, in large part, someone with low trust in the store, someone who prefers cash, or someone who came from a social media ad and never heard of the brand. It is an audience that converts thanks to COD, but also refuses more if expectations are not met.

This changes the planning question. In strong-COD Europe, you ask "what is the market's buyout?". In the Gulf, you ask "what is buyout by traffic source and by price band?", because variation is larger. Our post on the COD refusal rate shows how to break the numbers down.

Difference 3: competing payment methods

In the Gulf, COD competes with mature digital payment infrastructure. In Saudi Arabia, the national mada network is central: the Saudi Press Agency reported that e-commerce sales with mada cards exceeded SAR 69 billion in the first quarter of 2025. Wallets and tap-to-pay are also strongly present in the region.

In Europe, the picture is mixed. Northern and western countries rely on cards, instant transfers and local wallets. Central and Eastern European countries leave more room for payment on delivery. A seller operating in both worlds needs a checkout that adapts to the market, not a single universal checkout.

What changes in the operation: in the Gulf, offer the local digital methods (mada in Saudi Arabia, wallets and cards in both countries) and leave COD as an additional option. In strong-COD Europe, COD can be the protagonist.

Difference 4: address and location

This is the point that drops the most deliveries, and the two regions solve it in opposite ways.

  • Europe: standardized address, reliable postal code, street and number. Location is rarely the problem. Failure usually comes from the customer's absence or refusal.
  • UAE: there is no universal postal system like Europe's. A lot of delivery is guided by references, building names and, mainly, phone contact with the customer.
  • Saudi Arabia: Saudi Post (SPL) maintains the national address, a short eight-character code tied to an exact point. When the customer provides that code, location improves a lot.

What changes in the operation: in the Gulf, a valid phone number and active confirmation are not details; they hold up the delivery. At Saudi checkout, ask for the national address. In the UAE, ask for a building reference and validate the phone before dispatch. The guides to cash on delivery in the UAE and in Saudi Arabia detail each case.

Difference 5: tax and imports

The tax burden and import logic change by region and, within the Gulf, by country.

  • UAE: 5% VAT, administered by the Federal Tax Authority (FTA). Most imported goods pay the Gulf Cooperation Council's common 5% duty, with exceptions.
  • Saudi Arabia: 15% VAT, administered by ZATCA. Duty depends on the product's classification, and there are customs service fees.
  • European Union: VAT is set by each Member State, and selling from outside the EU to European consumers has its own import and collection rules.

What changes in the operation: the final consumer price has to absorb each market's tax, and the same offer has a different margin in each. Importing for resale is different from a personal order. Confirm classification, duty and VAT with the authority or a broker, and do not treat blog numbers as definitive, this one included.

Difference 6: language, trust and confirmation channel

Order confirmation is the point where COD wins or loses money, and language and channel change by region.

  • Europe: each market has its own language, and confirmation must be in the customer's tongue: Italian, Bulgarian, Hungarian, Slovak, Polish, Croatian, Czech, Spanish. Cheap machine translation conveys distrust.
  • Gulf: Arabic is the language of trust for much of the audience, and English works well in urban contexts and among residents of many origins. WhatsApp is a central contact channel.

What changes in the operation: the confirmation team or flow has to speak the market's language. Each new language is a cost, and it should be included in the margin calculation before the decision to enter.

Difference 7: calendar, regulation and product

The commercial calendar and product rules also diverge:

  • Calendar. In Europe, the commercial year revolves around Black Friday, Christmas and seasonal sales. In the Gulf, Ramadan, Eid and White Friday, the regional version of Black Friday, weigh most. Delivery and service hours change during Ramadan.
  • Weekend. In Saudi Arabia the weekend is Friday and Saturday, which shifts delivery and confirmation windows.
  • Product regulation. Cosmetics, supplements and health items go through different authorities in each market. In Europe, selling within the EU brings obligations such as general product safety. In the Gulf, bodies such as the SFDA in Saudi Arabia control registration and labeling. N1 is not responsible for the regulatory compliance of the product the seller markets.

What changes in the operation: a product that passes in Europe may not pass in the Gulf and vice versa. Check the product's registration and labeling before scaling ads.

Summary checklist: what to adjust when switching regions

Use this list as a checklist before opening a new market:

  1. Role of COD: main or complementary? Define the order of payment methods at checkout.
  2. Risk profile: what buyout do you expect by traffic source? Measure by campaign, not by store.
  3. Local payment: which wallets and cards does the consumer use? Accept them.
  4. Address: which location data is reliable? Ask for the national address in Saudi Arabia, validate the phone in the UAE, use the postal code in Europe.
  5. Tax: what are the VAT, duty and import treatment? Recalculate price and margin.
  6. Language and channel: in what language and through which channel does confirmation happen?
  7. Calendar and product: which dates concentrate sales and which regulatory requirements does the product face?

How to decide where to start

One way to organize the decision:

  • Start in the market where your product already has proven demand and where you can confirm orders in the local language.
  • Do not open the Gulf and Europe at the same time without separating measurement. Mixing buyout from markets with different profiles hides the problem.
  • Test with small volume and measure buyout by dispatch cohort, not by created order.
  • Calculate margin with refusals inside the equation before scaling. Our post on how to calculate COD margin shows how.

If the question is between COD and prepayment, the post COD or prepayment? How to decide market by market details the criteria.

Where N1 fits into this math

N1 is a fulfillment and cash-on-delivery platform operating in European markets and in the United Arab Emirates and Saudi Arabia. The seller connects the store, and the order follows the flow of confirmation, dispatch, delivery and reconciliation, with buyout and payout visible in one dashboard. Product, offer and audience decisions remain yours.

To evaluate an operation in the Gulf or in Europe, request a proposal on the cash on delivery page or talk to a specialist on WhatsApp.

Frequently asked questions

Does COD work the same way in the Gulf and in Europe?

The mechanism is the same, the customer pays on receipt, but the role of the method differs. In several strong-COD European markets, it can be the main method. In the Gulf, it works better as a conversion alternative alongside cards and digital wallets.

Is COD disappearing in the Gulf?

It is losing weight. Checkout.com records regional COD preference falling from 41% to 20% between 2020 and 2023, with about 10% in the UAE, Saudi Arabia and Kuwait. It still converts new buyers and little-known stores.

In which region is refusal higher?

There is no single answer. Refusal depends on the product, the price, the traffic source and the quality of confirmation. Always compare buyout by market and by campaign, and do not compare averages from different regions.

Do I need Arabic-speaking staff to sell in the Gulf?

For the part of the audience that trusts Arabic more, it helps a lot, and English covers another part, especially in urban contexts. Define the confirmation language by market and include the cost in the margin math.

Does VAT change my margin between the UAE and Saudi Arabia?

Yes. The UAE applies 5% VAT and Saudi Arabia 15%. Duty and customs fees also depend on the product. Recalculate price and margin for each country.

Can I use the same store for Europe and the Gulf?

Technically yes, but checkout, language, payment methods and confirmation need to adapt to each market. A single store with a single experience tends to convert worse on both sides.

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