Follow the tips and suggestions of Kartrocket in order to reduce the failers and returns of COD.

1. How to minimize COD failures and
returns
eCommerce Software for Indian SME’s

2. Given the challenges of high return rates and fraud, and yet the absolute
necessity of COD, we use some varied tactics to deploy COD and yet only gain
from it.

4. Recently Flipkart announced that it would stop cash on delivery (COD) for
orders over US$185 (10,000 rupees) to some parts in the state of Uttar
Pradesh. This may be the first sign that online retailers are pushing back
against the popular payment method of Cash on delivery.

5. It was always a very risky way of payment to begin with. According to a report
in the Times of India, Flipkart customers would order expensive goods “just
for fun”, and refuse to accept them upon delivery. Not only this, but the most
frequent reasons for failed deliveries are:

6. Refusal to accept their orders and rejecting its delivery at all. This is one of
the worst practical jokes to be played as the delivery site just ends up feeling
really stupid as they don’t get paid for the delivery, let alone the shipping cost
which is never recovered.
Due to a slight dislike the delivery could be easily rejected, another absolute
no-no for the company’s economy.

7. We really wish to incorporate COD even with its so many problems because it
expands our consumer base rapidly. People with no access to online means of
paying rely on COD only. Given the challenges of high return rates and fraud,
and yet the absolute necessity of COD, we use some varied tactics to deploy
COD and yet only gain from it.

8. 1. Maximum Purchase Limit.
What Flipkart did in the first week of June 2013 was a step to recognize
people genuinely shopping, segregating them from the herds of people who
do not value COD and mock it so openly. It announced that it was not going to
be fulfilling cash on delivery orders of more than 10,000 rupees in certain
areas of Uttar Pradesh.

9. 2. Offers and Incentives on Online Payment.
Giving discounts or free gift vouchers to people who pay online is a very beneficial
scheme. Luring people to pay you online is a great way to confirm their credibility.

10. 3. Have cash on delivery (COD) only for select categories.
Often using COD for all categories may not make logistical sense. Some of the
categories like books etc may not need the COD model. While electronics is
something that COD model would work better with, so limit Cod to such
categories only.

11. 4. Keep a minimum purchase limit for availing COD.
There is an upper limit to employing the COD so it makes sense to put a lower limit to
it. A minimum amount should be set up only after which COD will be valid for
customers.

12. 5. Start a small charge for COD.
Maybe a tiny amount to begin with, COD will then be perceived as an extra baggage
charge which people will start avoiding soon.

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