Cash on Delivery: how to offer it without getting burned

Why COD wins in Pakistan

Customers in Pakistan trust COD more than any other payment method. They see the item when the courier arrives, check it's not damaged, then pay. Zero risk for them.

For you, COD is a real business payment method. Couriers like TCS and Leopards handle the money. You get paid when the package is delivered. You don't take the customer's card number or bank account. You don't need to refund card transactions.

But COD does come with one risk: fake orders. Someone orders from you with a fake name and wrong address hoping you'll send it anyway. When the courier can't deliver, you lose the item and the shipping cost.

The fix is simple: talk to the customer before you ship.

Confirm every order by phone or text

When an order comes in, call or text the customer within 2 hours. Say:

"Hi, I received your order for [product name] going to [address]. Is that correct?"

If they don't confirm, don't ship.

This one step stops 95% of fake orders. A fake order won't answer your phone. A real customer will confirm their order and their address in seconds.

You also catch mistakes: a customer enters the wrong house number, you fix it. A customer types their address on mobile and it's formatted wrong, you ask them to repeat it. These 2 minutes save you a lost shipment.

Say no to risky orders

Some orders are red flags:

• Vague address: "Send to Karachi" with no house number. Call and ask for the full address: house number, street name, area. If they can't give it, don't ship.
• Wrong city: You only ship in Punjab but the address is in Balochistan and the courier loses it there. Ask which courier they're using or say you don't deliver that far.
• Expensive item, new customer: Someone orders a 15,000 rupee item for Cash on Delivery and they have zero reviews. Okay to ask for 20% upfront payment (mobile payment, bank transfer) to confirm they're real. Say "We need a deposit for orders over 10,000 rupees."
• They don't answer when you call: Skip this order. Move on.

You run a business, not a charity. If an order feels wrong, it probably is.

Reduce returns

A customer gets the item, doesn't like it, refuses delivery. Now you have to go pick it up, pay return shipping, and resell it with the packaging damaged. It's a loss.

When you confirm the order by phone, add one sentence:

"Just so you know, once you receive it and sign for it, returns are not available. So please make sure the product is what you want."

That sets the expectation. A lot of people say "yes, I want it" again. Some say "Actually, I don't want it after all" right there and cancel. Both are better than them refusing at delivery.

In your product photos and description, be honest. Show all angles. Say the exact measurements and materials. If a scarf is longer or narrower than most, say so. Customers who know what they're getting don't return it.

When to add online payment

Start with COD only. It's simple and works.

After your first 50 orders, some customers will ask for online payment. Let them pay upfront with a debit card or mobile wallet. They're less likely to cancel, and you know the money is real before you ship.

Offer both. "You can pay Cash on Delivery when it arrives, or pay online now." Let the customer choose. Online payment customers are usually in a hurry and more loyal.

Track your money

After you ship an order with COD:

• Note the tracking number
• Note the sale amount (what the customer paid)
• Note the shipping cost (what you paid the courier)
• When the courier pays you, confirm the amount matches

Every week, the courier deposits your money. Check it. If you sold 10 items for 5,000 rupees each and the courier only paid you 45,000 rupees, ask why. (One item might have failed delivery or the customer negotiated.)

Keep receipts. You're building a real business and you need records of what you earned.

The COD rhythm

Day 1: Order comes in

Day 1 (2 hours later): You call, confirm, and get permission

Day 1 (same day): You pack and go to the courier office

Day 2-3: The courier delivers to the customer

Day 2-3: Customer pays the courier

Weekly: Courier pays you

That's cash flow. Money comes in after you've already shipped, which is different from taking payment upfront. Budget for it. Keep a small float (2,000-3,000 rupees) to cover your next batch of materials while you wait for couriers to pay.

Common questions

What if the customer is rude when I call to confirm? They're already being rude before they even get the product. You don't need their business. Say "Thanks for your interest, I'll have to cancel this order" and move on. The next 100 customers will be polite.

What if they complain the item was damaged in shipping? Ask for a photo of the damage. If the box was torn or the item is broken, refund them or send a replacement. It's worth 500 rupees to keep them happy and get a positive review.

Can I ask for a deposit to secure the order? Yes. For high-value items (over 10,000 rupees), asking for 20-30% upfront is normal. Say "We need a deposit to confirm your order. You'll pay the rest to the courier."