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Magnetic Keys
Commerce

COD (Cash on Delivery)

Also known as: cash on delivery

Definition

Cash on delivery is a payment method where customers pay in cash when an order arrives. It remains widely used across the GCC and materially affects e-commerce margin through failed and refused deliveries.

COD raises conversion by removing payment friction and trust barriers, which is why removing it entirely usually costs more revenue than it saves. But refusal and failure rates are substantially higher than for prepaid orders, and every failure carries the full outbound and return shipping cost.

It has to be modelled into CAC and contribution margin rather than treated as an operations issue. WhatsApp confirmation before dispatch is the most reliable mitigation and typically reduces failure rates meaningfully.

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