Insights · July 5, 2021

E-commerce Essentials: Running COD Orders Without Losing Margin

E-commerce Essentials: Running COD Orders Without Losing Margin

For many online stores in Pakistan, cash on delivery is the difference between a sale and an abandoned cart. It also brings a cost that shows up later: orders that were never real, parcels refused at the door and courier fees paid in both directions. The essentials below are about keeping the first benefit without paying too much for the second.

Know your numbers first

Before changing anything, measure three things for the last month: the share of orders cancelled before dispatch, the share refused or returned after dispatch, and what each returned parcel costs you in delivery and handling. These numbers show where the money is going and let you judge whether a change worked.

1. Confirm every order before it ships

A confirmation step filters out fake, duplicate and impulse orders while they are still free to cancel. Doing this with manual phone calls works at low volume and breaks as you grow. Automated confirmation, by voice call or WhatsApp, where the customer presses a key or replies to confirm, scales with your order volume and records the result against the order. Robo Call Pakistan does this for Shopify and WooCommerce stores.

2. Check addresses and spot duplicates

Incomplete addresses, missing landmarks and several orders from the same phone number are early warning signs. Flag these orders for a quick check before dispatch.

3. Keep the customer informed

Customers who receive a message when their order is dispatched and when it is out for delivery are more likely to be available and ready to pay. WhatsApp updates through Robo Alert or SMS through Robo SMS Pakistan cover this automatically.

4. Choose couriers by results, not only by rate

Compare couriers on delivery success rate in your main cities, speed, how they handle refusals and how quickly they remit cash, as well as price. Many stores use more than one courier depending on the destination.

5. Encourage prepaid orders, gently

A small discount or free delivery for prepaid orders shifts some customers away from COD without forcing anyone. Make the offer visible at checkout rather than hiding it.

6. Track returns by reason

Record why each parcel came back: refused, unreachable, wrong address, changed mind. Patterns point to fixes, for example one city with a high unreachable rate, or one product that disappoints on arrival.

7. Make policies clear before purchase

Delivery times, exchange and return rules and whether customers can open the parcel before paying should be stated on the product page and at checkout. Surprises at the door lead to refusals.

Putting it together

Start with confirmation, because it acts before any courier cost is incurred. Then add address checks and delivery updates. Review your three numbers each month. If you want help setting this up end to end, our e-commerce team has run these operations for its own brands, and you can start with a short inquiry.

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