Commerce OS / Free tools / COD cost calculator
Free tool

What is cash on delivery costing you?

Put in your own numbers to see the monthly cost of COD fees and returned parcels, and how much cash is waiting with couriers. The defaults are only an example.

COD orders delivered—
COD fees—
Returns: shipping both ways + damage—
COD cost per month—
Cost per COD order placed—
Cash waiting with couriers at any time—
Saving a month if returns halved—

Shipping on delivered orders isn't counted as a COD cost. Excludes app fees and staff time.

Want fewer returns? D2 Commerce OS confirms COD orders on WhatsApp, checks addresses before dispatch and tracks every COD rupee to your bank. Free up to 100 orders a month.

Disclaimer: Courier fees, return rates and remittance cycles vary by courier, contract, region and product; use the figures from your own courier agreements and records. Results are estimates for general information only and are not tax, legal, accounting or financial advice. They depend entirely on the figures you enter and may not reflect your actual costs, rates or obligations. Please consult your chartered accountant (CA) or tax adviser before relying on them for invoicing, pricing, tax filing or any business decision. D2 Commerce OS and Mirav Labs make no warranty about the accuracy, completeness or fitness of these results for any purpose and accept no liability for any loss, penalty, interest or other consequence arising from their use.

Bringing it down

Four things that cut COD cost

  1. Confirm COD orders on WhatsApp before you ship, and hold the ones that don't confirm.
  2. Check the address and pincode at checkout and again before dispatch.
  3. When a delivery attempt fails, call or message the buyer that day.
  4. Reconcile courier remittances daily, order by order, and chase short payments while they're recent.

More in what COD really costs, reducing RTO and COD reconciliation. For the full picture per order, use the D2C profit calculator.

Questions

COD cost questions.

What does cash on delivery cost an online store?

Three things: the courier's COD fee on each delivered COD order, the cost of COD parcels that come back (shipping both ways plus repacking or damage), and the cash that sits with the courier until it's remitted.

What is RTO?

RTO (return to origin) is a parcel the courier couldn't deliver and sends back to you, usually a COD order the buyer refused or wasn't available for. You pay shipping both ways and earn nothing on it.

What is a normal RTO rate for COD orders in India?

It varies a lot by category, price and region. Many D2C brands see 15–30% of COD orders come back; brands that confirm COD orders and check addresses before dispatch usually see much lower rates.

How do I reduce COD returns?

Confirm every COD order on WhatsApp before shipping, check the address and pincode before dispatch, call the buyer the same day a delivery attempt fails, and give a reason to prepay. D2 Commerce OS does these on every order.

Talk to us

Your store, set up free. Start with your number.

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Leave your number and we'll take it from there — your store, your catalogue, your delivery setup, done by our team.

  • We set up your store and move your catalogue — no charge
  • Free forever up to 100 orders a month, then ₹6–₹10 per order beyond 100
  • Want to see it first? A walkthrough on your own products
  • No plugins to buy, no developer, no lock-in
Free setupNo card needed

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