Why are online sellers closing the Cash on Delivery (COD) option?

Why are online sellers closing the Cash on Delivery (COD) option?

Sunday, Jan 28, 2024 0 comment(s)

Why are online sellers closing the Cash on Delivery (COD) option, Read carefully?

This cash-on-delivery (COD) option was widely used in the early days of e-commerce in India as the options for making online payments were limited then. But after getting other options like UPI, and Wallet, most of the e-commerce websites are closing the Cash on Delivery (COD) option.

Because there is no benefit to the e-commerce industry in this there is a loss. Because the only reason for this is the misuse of this easy service.

This burns the capital and earnings of the online business because once the order is dispatched the companies have to bear the logistics cost which averages around Rs 80, if the same order is refused i.e. returned. So again the company has to pay the same cost of Rs 60. They cannot claim it from the customer.

That is when the order is received back by the company, it will have to suffer a loss of Rs 140, which includes labor, packing, and other expenses, so no company can play with its profit.

Everyone in business has to earn a living and run the business, so no one will play by bearing the losses, hence e-commerce companies do not get any motivation to continue such service. Therefore, most of the companies do not provide cash on delivery services on products for this very reason.

It is not that all customers do this, but some people are responsible for this who knowingly or unknowingly misuse cash on delivery services.


A simple request to all those doing this. ,

  • Why do you order when you don't have to buy? This should not be done.
  • Canceling an order at the last minute or after its shipment shows the maturity of a customer's mind.
  • While for many people it is funny to just order COD and then refuse to accept it. The real burden fell on the shoulders of this seller who is trying to earn a livelihood. It's over before it even begins.
  • RTO is very slow in returning orders. Sometimes it takes up to 20 days to get the product back. So much so that they break down.
  • For COD or Cash on Delivery, a separate standard COD order fee of Rs 50 has to be paid, but almost the same amount has to be paid at RTO.

Therefore, while rejecting cash on delivery orders, remember your irresponsible behavior, due to which a business may be closed. Therefore, it was decided that CATVIndia.com would also suspend the accounts of such irresponsible customers for a lifetime.


Therefore, cash on delivery or online ordering should be done only after careful consideration.

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