Algerian shoppers pay cash on delivery because they trust a parcel in their hands more than a website they have never seen. If you sell online in Algeria, build your store around that habit instead of fighting it.
That means three things:
- Take the order without asking for money.
- Confirm it before you ship.
- Offer card payment as an extra, not as the only way to pay.
This guide explains why buyers behave this way and what the law says. Then it shows what breaks a cash on delivery store, and how to build one that does not lose money.
Why do Algerians prefer cash on delivery?
Because the buyer trusts the product, not the website.
Think of buying a watermelon at the market. You pick it up, you knock on it, and only then you pay.
An online store that asks for money first wants you to pay for a watermelon you can't touch. And from a seller you have never met.
So the buyer does the sensible thing. He orders, he waits, he opens the door, he looks at the product, and then he pays.
Here is what surprises most people: it is not because Algerians have no bank cards. At the end of 2025 there were more than 21.8 million interbank cards in Algeria. Online card payments reached 145 billion DA over 27 million transactions that year (GIE Monétique report via EcoTimes, February 2026).
But only 644 web merchants were connected to the national online payment platform at the end of 2025 (same report). Millions of cards, a few hundred stores. Most online shops simply do not offer card payment, and most buyers do not trust the ones they do not know.
Is cash on delivery legal for online stores in Algeria?
Yes. E-commerce in Algeria is governed by Law 18-05 of 10 May 2018 (Journal Officiel no. 28, 2018).
Five articles matter most for your store:
| Article | What it says | What it means for you |
|---|---|---|
| Art. 8 | E-commerce requires registration in the commercial register (or crafts register) and a website hosted in Algeria with a ".com.dz" address | Selling only through an Instagram page does not meet this rule |
| Art. 12 | An order has three required steps: show the terms, let the buyer check and correct the order, then confirm it | Your checkout needs a review step before the final button |
| Art. 17 | On delivery, the seller must get a signed receipt, and the buyer can't refuse to sign it | Ask your courier how they record delivery proof |
| Art. 23 | If the product is wrong or faulty, the buyer can send it back within 4 working days, at the seller's cost | Budget for returns of wrong items |
| Art. 27 | Payment can be made at a distance or on delivery | Cash on delivery is fully legal |
One more point most guides miss. The self-entrepreneur card covers services, not general retail. If you sell physical products, you need a commercial register.
I explain what the card does cover in the self-entrepreneur card guide.
What breaks a cash on delivery store?
Three problems, and all of them happen before the parcel reaches the door.
1. Orders nobody really meant. With no payment upfront, ordering costs nothing. Some people order on impulse, order twice by mistake, or order to "see the price with delivery".
2. Bad addresses. A free text address field gets "near the mosque" or a wrong commune. The courier can't find the buyer, and the parcel comes back.
3. Refused parcels. A refused parcel is called an RTO (return to origin): it goes out, it comes back, nobody pays. You still pay the courier, and your stock is stuck in a van for days.
Each problem looks small alone. Together they decide whether a store makes money.
How do you build a store for cash on delivery?
You design the system around how people behave, instead of asking people to change. This is what I built into WovenDZ, the multi-vendor platform I made for Algerian sellers: cash on delivery, local courier integrations and Arabic first storefronts.
| Step | What to build | Why it matters |
|---|---|---|
| 1. Short order form | Name, phone, wilaya, commune, address. No account needed | Every extra field loses buyers |
| 2. Address from a list | Wilaya and commune chosen from a list, not typed | Fewer lost parcels |
| 3. Review step | The buyer sees products, prices and total, and can correct them | Required by art. 12, and it cuts mistakes |
| 4. Confirmation call | Call or WhatsApp the buyer before shipping | Removes most impulse and fake orders |
| 5. Confirmation message | SMS or WhatsApp with an order number | The buyer knows the order is real and does not order twice |
| 6. Courier link | Send confirmed orders straight to Yalidine or another courier | No copying addresses by hand |
| 7. Status history | Placed, confirmed, shipped, delivered, paid, returned | You see where money is lost |
For step 6, the open source CourierDZ library connects to several Algerian courier companies from one piece of code (CourierDZ on GitHub).
Here is how this compares with a store built for Europe or the US:
| Store built for card markets | Store built for Algeria | |
|---|---|---|
| Main problem it solves | Buyers leaving the cart | Orders that never get paid |
| Payment | Card first | Cash on delivery first, card as an option |
| How it checks the buyer | The bank approves the card | A phone call or message confirms the order |
| What it measures | Cart abandonment | Confirmation rate and refused parcels |
Should you add card payment with Chargily?
Yes, as an option, not as the only way to pay.
Chargily Pay is a local payment service that lets your store accept CIB and Edahabia cards. It lists Visa and Mastercard as coming soon (Chargily, October 2026).
Offer it next to cash on delivery. Buyers who trust you will pay by card, and you get paid before you ship. Buyers who do not trust you yet still have the door option.
Forcing card payment only cuts out the second group, which is most of your new customers.
What mistakes do Algerian online stores make?
- Copying a European checkout. A card form first and an account to create will lose most Algerian buyers before the order.
- Shipping without confirming. Every unconfirmed order is a parcel that might come back unpaid.
- Letting buyers type the address freely. Use lists for wilaya and commune.
- Selling only through Instagram messages. It does not meet article 8 of Law 18-05, and it eats your time. I show why in the paradox of choice at checkout.
- Not tracking refused parcels by phone number. If a number has refused before, call before you ship to it again.
What should you do this week?
- Today: count last month's orders, confirmed orders, delivered orders and refused parcels.
- This week: add a confirmation call or WhatsApp message before every shipment.
- This week: replace the free text address with wilaya and commune lists.
- This month: check your legal setup: commercial register and a .com.dz site.
- Then: add Chargily as a second payment option, and watch how many buyers pick it.
Building your first store on a small budget? Read how much an app or store really costs in Algeria before you ask for quotes.