Home โ€บ Guides โ€บ Cash on Delivery (COD) Tips for Online Sellers: Reduce RTO and Fake Orders

Cash on Delivery (COD) Tips for Online Sellers: Reduce RTO and Fake Orders

Cash on delivery is popular in India because many customers prefer to pay when the parcel arrives. For sellers, it also brings higher return rates (RTO, or return to origin), shipping losses and fake orders. These tips help.

1. Confirm every COD order

Call or WhatsApp the customer before dispatch to confirm the address, phone number and amount. Orders that are not confirmed within a day are often fake or impulsive.

2. Collect a small advance for high-risk orders

For expensive items or repeated returners, ask for part payment by UPI. Even a small advance makes customers more serious. See how to create a UPI QR code.

3. Get the address right

Incomplete addresses are a top reason for failed delivery. Ask for the house or shop number, landmark and 6-digit PIN code. Put the phone number on the label so the courier can call. Our shipping label generator prints the address, PIN and phone in large type.

4. Print the COD amount clearly

Show the exact amount to collect in a bold box on the label, so the delivery person asks for the right amount. This avoids disputes.

5. Price COD fees into your margin

Couriers charge a COD fee, usually a percentage of the order value or a minimum, and remit collected cash after some days. Add the fee, the cost of returns and the delay in cash to your pricing. Use the margin calculator to check you still make a profit when 20 to 30% of COD orders return.

6. Track returns

Keep a simple sheet of pincodes and customers with repeated RTO. Stop COD for areas or customers that always return.

7. Pack to avoid damage claims

Damaged-in-transit refusals are avoidable. Follow our guide on packing a parcel for courier and keep a photo of every packed parcel.

8. Send an invoice with the parcel

An invoice inside the parcel reduces disputes and is required for GST-registered sellers. Make one with the invoice generator.

Quick checklist

  • Confirmed by call or WhatsApp
  • Full address with PIN and phone
  • COD amount printed on the label
  • Photo of packed parcel
  • AWB shared with the customer (what is AWB?)