Cash on Delivery is the backbone of e-commerce in Pakistan. The majority of online orders are still paid in cash at the doorstep. It builds trust with buyers who are wary of paying online — but it also creates real headaches for sellers. Here is how to make COD work for you rather than against you.
How COD works?
The customer orders online but pays cash when the parcel is delivered. The courier or logistics provider collects the payment, then remits it to you (the seller), usually after deducting their fee. Simple in principle — but the gap between dispatch and remittance ties up your cash.
Why COD return rates are high?
COD makes ordering effortless, which is a double-edged sword:
- Impulse orders get cancelled by the time the parcel arrives.
- No financial commitment means customers refuse delivery with no consequence.
- Wrong or incomplete addresses cause failed attempts.
- Unreachable customers on delivery day lead to returns.
Every failed COD delivery costs you twice — the outbound and the return leg — plus the tied-up stock.
Practical ways to reduce COD returns
- Confirm every order. A quick call or WhatsApp message before dispatch filters out non-serious buyers.
- Verify the address and phone number at checkout and before shipping.
- Send tracking updates so customers expect the parcel and are available.
- Offer partial online payment or advance on higher-value orders to secure commitment.
- Flag repeat offenders. Track customers who repeatedly refuse COD and adjust how you serve them.
- Use a reliable delivery partner with multiple delivery attempts and clear communication — see Door-to-Door Delivery.
Protect your cash flow
The other COD challenge is remittance speed. Money collected at the door sits with the courier until it is paid to you. A partner with a transparent, prompt COD remittance process keeps your working capital moving.
Lasani Logistics offers dependable COD delivery with clear remittance and strong delivery success rates. Talk to us about your COD orders.