The journey of COD money
- The delivery agent collects cash from the buyer
- The courier deposits it and remits to the aggregator on its cycle
- The aggregator matches remittances to delivered parcels
- The aggregator pays the seller, by bank transfer or into their wallet
Where it goes wrong
Parcels marked delivered but missing from the courier's remittance, payouts sent without a reference, and sellers who can't see which parcels a payout covers. All of these are tracking problems, not money problems.
Doing it properly
Keep a ledger per seller of every delivered COD parcel, record each payout with its UTR, and let sellers see the same ledger. Offering payout to wallet is popular with sellers who ship daily, because they never have to recharge.
Frequently asked questions
How often should sellers be paid?
Many aggregators pay weekly or twice a week. Faster payouts are a strong selling point if your cash flow allows it.