Managing COD vs prepaid orders in India: reducing RTO risk
Strategies for Indian online sellers to reduce Return-To-Origin (RTO) expenses, incentivize prepaid UPI payments, and protect profit margins.
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Who this is for: Indian online sellers dealing with Cash on Delivery orders and shipping returns.
The true cost of Cash on Delivery (COD) in India
While COD remains popular in India, non-acceptance rates at delivery can range from 15% to 35% on unverified orders. Sellers lose double shipping costs (forward + return shipping) plus logistics handling fees.
Encouraging prepaid UPI payments through instant checkout incentives (e.g. ₹50 off prepaid orders) significantly reduces RTO rates and stabilizes cash flow.
Frequently asked questions
How can I convert COD customers into prepaid buyers?
Highlight instant UPI payment options, display verified customer reviews, and offer a small instant discount for prepaid checkouts.