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Fulfillment & Logistics

COD vs Prepaid ROI & Revenue Simulator

Indian ecommerce brands frequently suffer 30%+ RTO rates on Cash on Delivery orders, compared to sub-5% on prepaid. Simulate the exact logistics budget savings by shifting users to prepaid channels.

Order Volume & Split Settings

Monthly Orders1000 Orders
Avg. Order Value (AOV)₹999
Current COD Ratio Split70% COD / 30% Prepaid
Annual ROI Protected

Simulated Annual Savings

₹112,500

By shifting COD split from 70% to 40% (Prepaid first strategy).

Monthly Protection:+₹9,375

Operational Efficiency Comparison

Current Scenario:225 RTOs (22.5%)
Monthly Sunk Cost:₹28,125
Simulated Prepaid-First Scenario:150 RTOs (15.0%)
Monthly Sunk Cost:₹18,750

Stop Logistics Leakage

Verify exactly which courier channels have billing discrepancies or underpayments on your returned products.

Audit Real Data

Why is Cash on Delivery (COD) a massive profitability drain?

Cash on Delivery represents over 60-80% of consumer sales in the Indian e-commerce landscape. However, COD checkout structures have a critical flaw: zero buyer commitment. Customers can reject courier packages at their doorstep with no financial consequences.

This results in RTO rates as high as 30% to 45%. Courier companies still bill the merchant for shipping the package to the customer, plus return processing fees. Shifting even 20% of your buyers to prepaid checkout drastically reduces returns and instantly protects cash flow.

How to transition customer checkout split from COD to Prepaid?

  • Offer small percentage discounts (e.g. 5% off) for instant prepaid checkouts.
  • Provide free shipping *only* on prepaid orders, and charge a logistics fee on COD.
  • Integrate UPI quick-checkout links directly inside cart pages to minimize payment hurdles.
  • Utilize SMS / WhatsApp verification tools to confirm COD intent before shipping the order.