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How to run an online store with cash on delivery

In much of North Africa, the Gulf and West Africa, most first orders are paid at the door. Cash on delivery removes the buyer’s fear — and moves the risk to you. A good COD store is built to make ordering easy and refusing rare.

Updated · 3 min read

How cash on delivery works

  • The buyer orders on your store and pays nothing online.
  • You confirm the order by phone or WhatsApp.
  • A courier delivers the parcel and collects the cash.
  • The courier pays you back, minus its fee — usually weekly or after each batch.
Four steps of a cash-on-delivery order: order form (pending), confirmation call (confirmed), courier delivers and collects 249 MAD (delivered), money back minus the fee
From the form to the money in your account, in four steps.

The order form: short and on the product page

A COD buyer decides fast. Put the order form on the product page, or as a pop-up from the buy button, and ask only what the courier needs.

  • Full name
  • Phone number (checked against your country’s format)
  • City — so the delivery fee shows at once
  • Address, with a landmark if addresses are unclear where you sell
The COD order form on a CODOS Store product page: name, phone, city and address, with the total
The order form on a real product page.

On CODOS Store, the COD order form does this out of the box, with quantity offers inside the form and an optional upsell right after the order.

Show the full price before the form

The most common reason a buyer refuses a parcel is a price that surprised them. Show the product price, the delivery fee for their city and the total before they press “Order”.

Confirm every order before shipping

Call or message every order within the hour. It catches wrong addresses, fake orders and buyers who changed their mind before you pay for a parcel. Use the call script and the WhatsApp messages.

In your orders list, move each order from Pending to Confirmed or Cancelled, then Shipped, Delivered or Returned — so you always know your real delivery rate.

The three numbers of a COD store

NumberWhat it measuresWhat to do if it drops
Confirmation rateOrders confirmed ÷ orders receivedCall faster; check fake or duplicate orders; show the total earlier
Delivery rateParcels delivered ÷ parcels shippedShip faster; send a “shipped” message; check courier quality by city
Cost per delivered orderAd spend ÷ delivered ordersFix the two rates above before you raise the budget

See what these rates do to your profit in the profit calculator, and read twelve ways to reduce refused orders.

Add other payments when you are ready

Bank transfer can sit next to cash on delivery from day one: the buyer sees your transfer details after ordering. Some sellers also write a mobile money number there.

Profit calculator

Your real profit per order after delivery, refused parcels and ads — and the most you can pay per order.

Open the calculator

Questions people ask first

Is cash on delivery risky for the seller?

It moves the risk to you: a refused parcel costs a return fee. Confirmation, clear prices and fast delivery keep that risk small.

Can I offer COD only in some cities or countries?

Yes. Payment methods are set per market, so you can offer cash on delivery where your courier works and bank transfer elsewhere.

Do I need a courier contract to start?

Many couriers take small sellers without a long contract. Compare their prices by city and their refusal fee before choosing.

Themes that fit

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Runway theme for a fashion store

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