Why We Don't Offer Cash On Delivery?

Only reason we don't offer cash on delivery is High Reject Rates

Study of various e-commerce businesses has revealed that the average rate of ‘rejects’ for all e-Commerce purchases was less than 0.5% for prepaid orders.

However, when looking only at cash on delivery (COD) purchases, this rate is 30%

It means out of every 100 cash on delivery orders 30 orders get rejected by the buyer at the time of delivery.

Reasons of why the order was rejected cannot really be predicted or easily prevented, Some of the most common reasons are:

  • Buyer was not really committed or had made an impulse purchase.
  • Buyer dissonance set in after the purchase was completed.

Problems caused by rejected cash on delivery orders

When a cash on delivery (COD) order is rejected the courier company delivers the parcel back to us & charges us for both way shipping.

So, in a way we incurred a total loss as we never sold the product and paid just for its delivery in addition to it there's wastage of several resources like packaging material and papers used for for billing and labels.

It ends up in an unnecessary increase in the prices of the all products, whose burden is ultimately bore by the customer, So we preferred out of the cash on delivery & just focus on the selling products at huge discounts & lowest prices possible.