How COD works
- The customer orders and chooses cash on delivery.
- The order is packed and dispatched.
- The courier collects the amount at the door.
- Collections are reconciled against orders.
- The money is remitted to the seller.
Why UAE shoppers still choose it
- They do not want to enter card details on a site they have not bought from.
- They want to see the product before paying.
- Some prefer not to use cards online at all.
For marketplaces and well-known brands, the prepaid share tends to grow. For new brands and social sellers, COD often decides whether a first order happens at all.
What COD really costs you
| Cost | What to check |
|---|---|
| COD fee | Per parcel, or a percentage of the value? Ours is 2.5% of the cash collected. |
| Cash-flow delay | How often is cash remitted, and on what cycle? |
| Refused parcels | You pay the delivery and the return, and stock is tied up. |
| Reconciliation time | Is there a per-order statement, or do you match it yourself? |
Nine ways to reduce refusals
- Confirm the order on WhatsApp before dispatch. It catches impulse orders, wrong numbers and duplicates.
- Collect complete addresses — building, flat, landmark or makani number.
- Show the full total at checkout, delivery included.
- Set expectations: when the parcel leaves, and roughly when it arrives.
- Dispatch fast. The longer the gap, the more customers change their mind. Our daily cut-off for same-day dispatch falls between 14:00 and 16:00.
- Offer a small prepaid incentive — free delivery or a gift for card payment.
- Watch repeat refusers and require prepayment from them.
- Keep COD limits on high-value orders if refusals are costly.
- Make the parcel worth opening. Branded packaging reduces “not what I expected” refusals.
Reconciling COD
Ask your delivery partner for a statement listing each order, the amount collected, any fees deducted and the remittance date. Match it against your store’s orders at least monthly. If a provider cannot produce that per order, you will be doing the matching yourself.