For D2C brands expanding beyond Tier-1 metro cities in India, Cash on Delivery (COD) remains the primary trust builder for first-time shoppers. Yet, a high number of returned or undelivered orders can quickly wipe out your profits if not managed carefully.
1. Understand the True Cost of Failed Deliveries
When an unverified COD parcel is rejected at the doorstep, the merchant pays two-way shipping fees (forward + reverse logistics), inventory lockup costs, and packaging wear. On legacy platforms, merchants are often forced to pay fixed platform transaction fees even on failed deliveries.
2. The Relaycial Delivered-Only Model
Relaycial calculates platform COD commissions strictly on orders marked as "Delivered". If a courier marks an order as returned/undelivered or cancelled before handover, zero platform commission is charged to the merchant.
3. Key Best Practices to Reduce COD Returns
- Automated Address Validation: Ensure complete PIN codes and nearest landmarks before creating shipping labels.
- Instant WhatsApp Confirmation: Send an immediate confirmation link allowing customers to confirm or cancel the order within 2 hours.
- Incentivize Prepaid Conversion: Offer an instant 5% or ₹50 discount at checkout for UPI payments via Razorpay.
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