In Bangladesh, Cash on Delivery is still the default for millions of shoppers - offering it can double your orders. But COD brings real risks: no cash until delivery, high cancellation rates, and returns that cost you shipping. Here is how to run COD profitably.

Table of Contents

Why COD Is Everywhere

Trust. Many Bangladeshi buyers do not feel safe paying online first, or simply prefer to inspect the product before paying. Offering COD removes the biggest barrier to purchase - which is why your conversion rate rises sharply when you add it.

The Risks

  • Cash flow: your money arrives only at delivery, and courier settlement takes days.
  • Cancellations: casual orders are abandoned at the door.
  • Returns: you pay shipping both ways on refused parcels.
  • Fraud: fake orders and unclaimed deliveries waste your stock.

Strategies That Work

  1. Confirm every order by phone before dispatch - this alone cuts cancellations sharply.
  2. Require an advance (deposit) on high-value or custom orders.
  3. State delivery charges clearly on the product page - surprise fees cause refusals.
  4. Use multiple delivery attempts from your courier.
  5. Track return rates per area and tighten risky zones.
  6. Send a confirmation WhatsApp/SMS after ordering.

Blending COD and Digital

Encourage digital payment gently - small discounts or points for bKash/Nagad prepayment. As trust grows, more customers prepay, improving your cash flow. Keep COD available; just steer where you can.

Frequently Asked Questions

What percentage of orders should I expect to be COD?

In Bangladesh, 50-80% of orders are still COD in many niches, depending on your audience and product value. Higher-value or urban audiences prepay more.

Who pays the courier's COD handling fee?

Usually the seller pays a small collection fee on each COD transaction, on top of delivery charges. Factor this into pricing so COD remains profitable.

COD is a bridge to build trust. Run it with discipline - confirm, advance, and track returns - and it becomes one of your strongest sales drivers.