How to set up cash on delivery and cut COD returns

Ask any online seller in Pakistan about cash on delivery and you will hear two things. It is the reason many customers order at all, and refused parcels are one of the most painful costs in the business: you pay to send it, you pay to get it back, the stock is tied up for days, and sometimes it comes back damaged.

You cannot make COD returns disappear, but most of them have causes you can do something about. This guide covers setting COD up properly and then the habits that bring refusals down.

How to set up cash on delivery on your store

1. 1Agree COD terms with your courier: the charge per parcel, the cash collection fee if any, the return charge for a refused parcel, and how often they pay the collected cash back to you.
2. 2Set your delivery charges on the store so customers see them before they order. Biizay supports flat rates, free delivery over an order value, rates by order value and rates by parcel weight; see shipping rates.
3. 3Switch on cash on delivery at checkout. On Biizay it is already on for every new store; our shipping setup guide covers the delivery side.
4. 4Write a short delivery and exchange policy and link it from the footer and product pages.

Why do customers refuse COD parcels?

Track the reason for every refusal for a month and patterns appear quickly. They usually fall into a few groups:

• Impulse orders: the customer changed their mind, or ordered from several sellers to compare.
• Wrong expectations: the product looked different, the size was wrong, or the total was more than they expected.
• Delivery problems: incomplete address, phone unreachable, nobody home, or no cash ready.
• Slow dispatch: by the time the parcel arrived, they had bought elsewhere.
• Fake or prank orders. Your own records will show how big a share these really are for you.

8 ways to reduce COD returns

1. Confirm before you dispatch

A quick call or WhatsApp message ('we are sending your order of the blue shirt, size M, total Rs X, arriving in 2 to 3 days') catches wrong addresses, changed minds and fake orders before you spend on delivery. Biizay does not send automatic verification codes, so make confirmation a habit: confirm the order in the portal only after the customer replies.

2. Show the full total up front

A customer surprised by the delivery charge at the door is a likely refusal. Show delivery charges at checkout and repeat the total in your confirmation.

3. Make the product page answer every question

Accurate colours, real measurements, fabric and what is in the box. Expectations set by the page are what the parcel is judged against. For sizes and colours, our guide to adding products with variants helps customers pick correctly the first time.

4. Dispatch fast

Interest cools quickly. Aim to confirm and hand parcels to the courier within a day. Biizay's order list shows unfulfilled orders on your dashboard, and when you mark an order shipped you can add the courier's tracking number.

5. Keep customers informed

A customer who knows the parcel is coming keeps cash ready and answers the rider's call. Biizay's Store emails app can email customers when an order is confirmed, shipped and delivered, sent as your shop.

6. Give a reason to prepay, never a penalty

Small incentives for paying in advance, such as faster dispatch or free delivery on prepaid orders, shift a share of customers away from COD without driving off the ones who need it. See our guide to the ways to accept online payments in Pakistan for the options.

7. Take an advance on risky orders

For unusually large orders or custom-made items, asking for a partial advance by bank transfer is normal and most genuine customers accept it. Say so in your policy, so it does not come as a surprise.

8. Learn from repeat refusers

Keep a note of phone numbers and addresses that have refused before, and ask those customers to prepay next time. Your order history is the best fraud filter you have.

What happens to stock when a COD order is cancelled?

It should go straight back on sale. On Biizay, stock is taken when the order is placed, so nobody else can buy the same last piece; when you cancel an order, the stock it took is returned to your count automatically, including whole packs.

How do I choose a courier for cash on delivery?

For a COD store, the courier is half of your customer experience. When you compare couriers, ask about more than the delivery price:

• How quickly and how often they pay collected cash back to you, and how you can check it against your orders.
• What they charge for a refused parcel, and how quickly it comes back.
• How many delivery attempts they make, and whether the rider calls ahead.
• Coverage: whether they reach the cities and towns your customers are in.

Many sellers use more than one courier: one for their own city and one for intercity parcels.

Should I stop offering cash on delivery?

For most new stores in Pakistan, no. Dropping COD usually loses more good orders than it saves in refusals. Keep it, and make it cheaper to run using the steps above.