Should I enable Cash on Delivery on my website?

Let’s talk about a payment method that still dominates the Indian market: Cash on Delivery (COD).

Now here’s the thing: As a D2C brand owner, you’ll eventually ask yourself:

“Should I offer COD on my website or not?”

And here’s my honest answer: Yes, you should, but do it smartly.

Let me explain.

COD is not just a habit in India; it’s deeply rooted in trust and purchase behaviour. It’s not about affordability or lack of digital access.

Let me give you a real example from my own customers at Offnorth.

One of our frequent buyers is a retired military officer. Another one? A doctor in his 50s.

Both are decently tech-savvy. Both have UPI, cards, and can easily pay online.

But guess what?

They still choose Cash on Delivery every time.

Why? Because COD gives them a psychological sense of control.

They feel like: “I’ll check if I really like the product. If not, I just won’t accept it.” This is true even though they pay the courier guy before opening the package.

This mindset isn’t limited to Tier 2 or Tier 3 cities.

Even metro customers prefer COD – especially when shopping from a new or unknown brand.

And that’s okay.

Now, let’s talk about the elephant in the room: RTO (Return to Origin)

Here’s the harsh truth:

• Prepaid orders have ~1–2% RTO

• COD orders can have 10-20% RTO

That means if you ship 100 COD orders, 10+ might come back, and you lose:

• Forward shipping cost

• Return shipping cost

• Packaging cost

• Time and energy

So how do we make COD available, but still protect ourselves?

The solution: Controlled COD + friction

COD is important, but don’t make it too easy.

Instead of showing: “Prepaid / COD – your choice” (50–70% will choose COD). Create a little friction for COD.

Here’s how:

✅ Add a COD Fee

Most courier partners charge ₹15–₹45 for COD handling. Pass that fee on to the customer as a ₹50 COD charge.

This does two things:

• Offsets your cost

• Nudges customers toward prepaid if they’re just being lazy

✅ Enable COD only on certain pincodes

Use your shipping partner’s API to block high-risk areas with high RTO rates. Many platforms offer this by default, including Shiprocket.

✅ Set COD limit (₹1,500 or ₹2,000)

Let customers place COD orders only under a certain value. If the cart value is ₹4,000, prepaid only.

✅ Show COD as a secondary option

Don’t place COD on top in your payment section. Let customers see UPI, Cards, Netbanking first. COD should feel like a last resort.

✅ Use smart checkout tools like GoKwik

They even predict COD RTO risk before shipping. If a customer has a high risk, you can block COD or force prepaid.

✅ Send confirmation messages

Before dispatching COD orders, send: “Hey! We’re packing your COD order. Please confirm availability on WhatsApp to avoid cancellation.”

This filters out impulse buyers.

In short: COD is not your enemy. It’s your conversion booster — if used wisely.

It helps you:

• Build trust with first-time buyers

• Increase conversion rate by 20–30%

• Close more sales – even from skeptical customers

But yes, it comes with a risk. So instead of removing COD (and losing 10–40% of orders), you just manage it smartly.

And that’s what separates high-converting brands from the rest.