How to Reduce COD Failure and Return Percentage

E-commerce has given wings to various businesses. As online product sales have become possible, the ecommerce industry has consequently become a battlefield. Hundreds of businesses come to the ecommerce market every day with key ideas to support the odds of finding real-time success.

Whether it is a startup or e-commerce store, the cash on delivery facility is located at the centre of all businesses for the maximum comfort and satisfaction of customers. However, this facility is often used by end-customers, regardless of its utility. Let’s find out how.

How is Cash on Delivery (COD) exploited?

Cash on delivery is a great way to persuade your end customers to buy a product, but it is not used deeply. Many people randomly use this facility by ordering high-value products and rejecting them when distributing them.

According to a report in TOI, Flipkart customers will order expensive items “only for fun” and refuse to accept them during delivery. It may seem cheerful at first, especially from the perspective of end-customers; It’s a disappointing thing for sellers

For every return (and later re-attempt), shipping charges for sellers doubled, trimmed their share of profits and turned THE COD into an alternative to safe payments for them.

Measures to reduce COD failures

The reason why cash on delivery is connected to every business is that it plays a helpful role in increasing the customer base very quickly. Many people don’t have the means to make online payments and they depend on on COD only.Considering the benefit requirements, we are listing some measures by which you can reduce the bulk of THE COD failure:

Maximum purchase limit

What Flipkart did in the first week of June 2013 is a step to recognize people who are genuinely shopping. By creating maximum purchase limits, Flipkart separates legitimate buyers from groups of people who don’t value the COD and mock it so shamelessly. Flipkart has announced that it is not going to be a delivery order cash supplement is more than Rs 10,000 in some parts of Uttar Pradesh.

Offers and incentives for online payments

This is a great way to ensure the credibility of your last customers. It is a great way to switch their payment ways to others in THE COD and attract them to cut the benefits added by offering discounts or gift vouchers to people who like to make payments online.

Cash on delivery for select categories only

Using THE COD in all product categories doesn’t make much sense. People ordering books, beauty, healthcare may seem right about delivering products. However, those who order expensive electronic items such as gadgets, refrigerators, etc. do not need a cash on delivery model.

Minimum purchase limit for COD earnings

Since delivery on cash is a higher limit for intake, it is reasonable to set a lower limit as well. Only genuine buyers will place orders by determining the minimum AMOUNT OF COD.

Charge a small amount for cash on delivery

To start, a small charge can be charged in the COD. By doing so, people will move constructively to make in choosing cash on delivery online payments and also close the excess baggage of THE COD.


The relevance of cash on delivery is significant and there is no reason to deny that must not be ignored. But with a few sensible measures mentioned above you can save yourself from unnecessary burden of shipping costs and scale your business the way you wish