Additional COD charges at checkout

The ecommerce market from a customer's viewpoint has always been more favourable to Cash On Delivery orders as compared to Prepaid Orders. However, for a growing brand, this is Pandora's box of returns, cancellations, inventory management issues leading to overall huge losses. The answer is simple; dissuade customers from placing cash on delivery orders.

This is easier said than done. The transition from COD to prepaid orders is slow. Especially for new brands, the lack of credibility and awareness affects this transition. However, brands can still brace themselves for order cancellations and returns while covering their logistical costs. By charging a small delivery fee additionally, the probability of cancellations or returns of fraudulent orders or non-serious buyers reduces. This approach targets the customer's subconscious by posing a small hindrance before checkout. A lot of low intention buyers will drop off at this point, avoiding returns.