5 Reasons Your COD Store Is Losing Money — And How to Fix It

The Hidden Costs of Cash on Delivery (COD)

Cash on Delivery is the king of payment methods in many emerging markets, but it comes with significant risks. High return rates (RTO) can destroy your profit margins if not managed correctly.

Here are the top 5 reasons your COD store might be bleeding cash, and how the Garean ecosystem helps you plug the leaks.

1. Fake Orders and Invalid Addresses

Competitors or bots may place fake orders to drain your ad budget and inventory. Fix: Use automated address verification tools.

2. Lack of Order Confirmation

If you ship immediately without confirming intent, you risk refusal at the door. Fix: Implement an automated WhatsApp or SMS confirmation workflow.

3. Slow Shipping Times

Impulse buyers change their minds quickly. If delivery takes more than 3 days, the refusal rate spikes.

4. Poor Communication

Customers who don\’t know where their package is are more likely to reject it when it arrives unexpectedly.

5. No Blacklisting System

Repeatedly shipping to customers who have refused orders in the past is a recipe for disaster. Fix: Use Garean\’s global blacklist database to flag high-risk customers automatically.

Conclusion

COD doesn\’t have to mean high risk. By optimizing your verification and logistics process, you can turn COD into your biggest growth engine.