Cash on delivery or prepaid: managing COD without losing money
How to keep the trust that cash on delivery brings while reducing failed deliveries and return costs.
EvoAstra team14 Nov 2026 · 3 min read- COD builds trust with first-time buyers but raises return-to-origin risk
- Confirm COD orders before shipping
- Nudge customers to prepay with small, honest incentives
Cash on delivery remains popular in India, especially with first-time buyers and in smaller towns. It lowers the trust barrier, but it also brings a cost: orders that are refused at the door and shipped back at your expense, often called RTO or return to origin.
- Prepaid45%
- COD delivered40%
- COD refused15%
Why COD orders fail
- Impulse orders the customer forgets about
- Wrong or incomplete addresses and phone numbers
- Delivery attempts when the customer is not available
- Fake or prank orders
Confirm before you ship
A quick confirmation call, IVR or WhatsApp message for COD orders filters out many of the problems. Ask the customer to confirm the order and address before you pack it.
Hi Priya, thanks for your order of the blue kurta set. Please reply YES to confirm delivery to Andheri East.
YES
Thank you! Pay online now and get free shipping on this order.
Sure, send the link
Encourage prepayment honestly
Small incentives such as free shipping or a modest discount on prepaid orders shift many customers to UPI or cards. Keep the offer simple and visible on the product page and at checkout.
Use data
Track refusals by PIN code, product and order value. Some brands limit COD for high-value orders or areas with repeated refusals, while keeping it open for loyal customers.
- Confirm every COD order
- Verify phone numbers
- Offer a prepaid incentive
- Track refusals by PIN code
- Cap COD on high-value orders
Do not remove COD too quickly
For many new brands, COD is how customers try you for the first time. Manage it well rather than switching it off.
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