What is a significant risk associated with cash in advance payment method?

Choosing the cash in advance payment method involves the buyer paying for goods before they are shipped or received. One significant risk for the buyer in this arrangement is that they pay upfront without a guarantee that the seller will deliver the promised products. This means that the buyer is taking on the risk that the seller may fail to fulfill their part of the transaction, either through not sending the goods, shipping defective products, or even becoming insolvent after receiving the payment. It places the financial burden on the buyer and can lead to significant losses if the transaction does not go as planned.

The other options touch on different aspects, such as concerns regarding the seller's financial health, shipping costs, or insurance, but they do not directly capture the essence of the buyer's substantial risk in making a payment in advance without the assurance of performance from the seller.