A Shopify Plus Solution
Additional COD charges at checkout
Reduce COD orders & decrease your order return rate with our custom built "Additional COD charges at checkout" feature on your Shopify Plus website.
- Why are so many of our Cash On Delivery Orders getting returned?
- Why are the abandoned cart rates so high on my Shopify ecommerce website?
- What can I do to increase the inflow of prepaid orders on my website?
- How do I dissuade more customers from placing COD orders?
Cash on Delivery Orders still make for the majority of Indian ecommerce brands' revenue. As is the nature of ecommerce, this is followed by a higher percentage of order returns (40% in certain cases) and the logistic processes have proven to be quite loss making historically.
The ideal solution to this challenge is two-fold:
- Cut losses by saving logistics costs for returned orders
- Dissuade customers from placing COD orders and nudge them towards prepaid orders
This is where our "Additional COD charges at Checkout" feature comes in for Shopify Plus Websites!
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.
How Does This Feature Work?
This solution can only be custom-built on Shopify Plus websites.
A normal Shopify store has a 3-step checkout process. This feature is deployed on the last page (Payment page).
This solution allows you to display the small fee that will be charged additionally for Cash on Delivery orders.
Upon the selection of this option, the total payable amount reflects the additional cost.
Why Do We Need It?
Additional COD charges at the checkout stage can benefit merchants in 2 ways:
1) Logistics Cost Recovery - This solution comes as a boon especially for merchants who face a high volume of order returns. Every COD return incurs a small logistic cost which amounts up to a good chunk that can be salvaged.
2) Potential Upsell - This feature has added functionality options as well. For instance, one can decide a threshold, below which COD orders will be charged additionally. In such cases, a disclaimer, for ex., “Shipping free on orders above Rs.500” can be displayed as well. If the cart order value crosses Rs.500, the charges are automatically waived off.
Marmeto is one of India's leading Shopify and Shopify Plus solution providers for all ecommerce storeswith customized solutions. With everything centered around Shopify, we offer simplified ecommerce solutions ranging from building customized solutions & integrations for your Shopify website to building Shopify apps to Enterprise Solutions centered around Shopify! We have developed over900 Shopify websites, 60 Shopify Plus storesand have successful collaborations with an array of partner ranging from marketing to logistics domains.
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