Courier Aggregatorby Dhatas

Blog

COD vs prepaid shipping in India

Cash on delivery remains popular with Indian online shoppers, especially outside the big cities. It helps sellers convert first-time buyers, but it brings extra charges, more returns and slower cash.

Updated 28 October 2026

What COD really costs

  • A COD handling fee on every order
  • Higher refusal and RTO rates than prepaid
  • Cash locked up until the courier remits and the aggregator pays out
  • Time spent reconciling payouts

When prepaid wins

Repeat customers, high-value orders and metro buyers are usually comfortable paying online. Nudging them to prepaid with a small discount or faster dispatch saves both the COD fee and most of the RTO risk.

Running COD well

Confirm high-value COD orders before shipping, keep a ledger of every delivered COD parcel, and pay sellers on a predictable schedule. Offering COD payout straight into the seller's shipping wallet is popular with sellers who ship every day, because they never have to recharge.

Frequently asked questions

Can merchants see their COD status?

Yes. Each merchant sees COD due, in transit and paid out, with every payout's reference.