Managing Cash on Delivery Without Losing Money

Customers here prefer paying when the parcel arrives, and that's not going to change soon. So the goal isn't to eliminate COD — it's to stop it eating your margin.

The return rate is the real cost

A refused COD parcel costs you delivery both ways plus the handling. At a high enough refusal rate, your best-selling product can lose money. Track refusals per product, per area and per customer — the pattern is usually very clear once you look.

Things that actually reduce refusals

• A confirmation call or SMS before dispatch
• A small advance through bKash on high-value orders
• Accurate product photos and honest descriptions
• Blocking repeat refusers, or requiring prepayment from them
• Realistic delivery estimates — late parcels get refused

Reconcile with the courier weekly

Courier settlements arrive as a list of parcels and amounts. Match it against your own orders automatically, not by eye. The mismatches — parcels marked delivered but not paid, or paid at the wrong amount — are where money quietly goes missing.

Nudge people toward prepayment

A small discount for paying online often costs less than the return rate it prevents. Offer it, measure whether it moves the needle, and keep it only if the numbers work.