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Cash on Delivery Without the Headaches

Cash on delivery wins orders in India, and also brings fake orders and returned parcels. How to keep the first and cut the second.

Many Indian shoppers still prefer to pay when the parcel arrives. Offering cash on delivery (COD) usually brings more orders. It also brings parcels that come back unopened, which cost you delivery both ways.

Confirm the Phone Number

Ask for a one-time code sent to the shopper's phone before a COD order is placed. A real buyer types it in seconds; a fake order with a wrong number never gets placed.

Ask for a Small Advance

A part-payment online (a small fixed fee on low orders, or a percentage on larger ones) turns a casual click into a commitment. Say clearly, before the order, what happens to the advance if the parcel is refused.

Set a Limit

Allow COD only up to an order value you are comfortable losing on a return.

Call Before You Ship

For new customers or large orders, a quick confirmation call before dispatch catches most problems. Orders nobody confirms can be cancelled after a few days, so stock is not held forever.

Follow Up Failed Deliveries

When a courier cannot deliver, act fast: call the shopper and ask for a new attempt. Most returns to origin are lost in the day or two after the first failed attempt.

Mercayo has each of these as a switch: the one-time code, the advance, the limit, the expiry of unconfirmed orders and the list of failed deliveries. See cash on delivery.

General guidance, not legal or tax advice. Check the details with your lawyer or CA.

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