Cash on Delivery builds trust but brings returns and fake orders. Here is how to run a COD online store in Bangladesh profitably.
Cash on Delivery (COD) is still one of the most popular ways to pay for online orders in Bangladesh. Customers like it because they can see the product before handing over money. For sellers, COD can increase conversions – but it also brings challenges like fake orders, refused parcels and delayed cash collection.
This guide shows you how to run a cash on delivery online store that keeps the trust benefits of COD while protecting your profits.
Why COD Remains Popular
- Trust: new customers are cautious about paying an unknown shop in advance.
- Inspection: buyers want to check size, colour and quality.
- Access: not everyone uses cards or is comfortable paying online.
- Habit: many shoppers are simply used to it.
Removing COD entirely can cost you sales, especially with first-time buyers. The goal is to manage it well, not abandon it.
The Hidden Costs of COD
Fake and impulse orders
Because ordering costs nothing upfront, some people order without real intent or forget they ordered.
Returns and refused parcels
When a customer refuses a parcel, you usually still pay delivery and return charges, and the product may come back damaged.
Cash flow delays
Couriers collect cash and pay you later according to their settlement schedule, so your money is tied up for some time.
Manual work
Calling customers, updating statuses and reconciling courier payments takes time if done by hand.
8 Ways to Reduce COD Returns and Fake Orders
1. Confirm every order
Call or message customers before shipping to confirm the product, size, address and total amount. This simple step catches many problems early.
2. Show complete product information
Many returns happen because the product looked different from expectations. Use real photos, size charts, measurements and honest descriptions.
3. Make delivery charges clear
Display delivery fees for inside and outside Dhaka on product pages and checkout. Surprise charges at the door lead to refusals.
4. Ask for a small advance on risky orders
For high-value items or customers with a history of refusals, consider asking for the delivery charge in advance via bKash or Nagad. Explain the reason politely.
5. Encourage prepaid orders
Offer a genuine incentive, such as free delivery, for paying online. Make sure the mobile payment option is easy to use at checkout.
6. Ship fast
The longer a customer waits, the more likely they change their mind. Fast dispatch reduces cancellations.
7. Keep a customer history
Track phone numbers that repeatedly refuse parcels and treat them carefully for future orders.
8. Communicate during delivery
Send tracking updates so customers know when to expect the rider and keep cash ready.
Managing COD With Courier Integration
Couriers such as Pathao and Steadfast collect cash on your behalf. Integrating them with your store helps you:
- Create consignments directly from orders with the correct COD amount
- Track delivery status without switching apps
- Reduce typing errors in addresses and phone numbers
- Reconcile delivered and returned orders more easily
On Multipurc, courier and payment integrations are available on the plugins page.
Setting Up COD on Your Store
- Register your Multipurc store.
- Enable Cash on Delivery as a payment method.
- Set delivery zones and charges.
- Add bKash, Nagad or SSLCommerz to give prepaid choices.
- Connect your courier account.
- Write a clear delivery and return policy.
Write a Fair Return Policy
A clear policy protects you and reassures buyers. Explain:
- Which items can be returned or exchanged
- How long customers have to request a return
- Who pays delivery costs for returns
- What happens if a parcel is refused without reason
Measure What Matters
Track your delivery success rate, return rate by product and by area, and how long courier payments take. These numbers show where to improve – for example, a product with frequent returns may need better photos or sizing information. Find more operational tips in the Learning Center.
Make COD Customers Repeat Customers
A smooth COD experience is often the start of a long relationship. Include a thank-you note, follow up after delivery and, once trust is built, invite repeat customers to pay online for faster processing. Choose a clean, trustworthy design from the theme gallery so first impressions are strong.
Example Order Confirmation Script
A short, polite call or message works well. For example: "Assalamu alaikum, this is [shop name]. You ordered the blue cotton three-piece in size M, total including delivery is [amount], to [area]. Can you confirm this is correct and that you will be available to receive it in the next few days?" Note the answer in your order notes. If the customer hesitates or cannot be reached after a couple of attempts, hold the parcel rather than shipping blindly.
Daily COD Workflow Checklist
- Review new orders each morning and flag suspicious ones (incomplete address, repeated numbers)
- Confirm orders by call or message
- Pack confirmed orders and print invoices
- Book couriers from the dashboard with correct COD amounts
- Share tracking details with customers
- Check yesterday's delivered and returned parcels
- Update notes for customers who refused parcels
- Reconcile courier settlements weekly
Common COD Mistakes
- Shipping without confirmation: leads to avoidable refusals.
- Different prices on Facebook and the website: causes disputes at the door.
- Poor packaging: damaged parcels are often refused.
- Ignoring settlement reports: missing payments can go unnoticed for weeks.
- Removing COD entirely too early: may push away new customers who are not ready to prepay.
Spotting Risky Orders Early
Some patterns deserve a second look before you ship: an incomplete or vague address, a phone number that does not answer, several orders from the same number with different names, unusually large quantities from a first-time customer, or a high-value item with no prior contact. None of these automatically means an order is fake, but confirming carefully – or asking for a small advance – protects you from avoidable losses.
Frequently Asked Questions
Should I offer only Cash on Delivery?
It is better to offer COD alongside online options like bKash, Nagad and cards so customers can choose.
How can I stop fake COD orders?
Confirm orders by phone, ask for advance delivery charges on risky orders and keep a history of refused deliveries.
When do couriers pay COD money?
Each courier has its own settlement schedule. Check your agreement with the courier.
Run a Smarter COD Store
COD can grow your sales when it is managed well. Start your Multipurc store with COD, mobile payments and courier integration ready to go.