Dec 21, 2022

Convert COD orders to prepaid (without auto cancel)


As a merchant, push for prepaid orders whenever you can.

It can reduce the risk of fraud: Prepayments can help to reduce the risk of fraud, as the merchant can verify the customer's payment information and ensure that the order is legitimate.

It can improve cash flow: Receiving payment in advance can help merchants improve their cash flow, as they will have the funds available to cover the cost of fulfilling the order.

It can reduce the risk of non-payment: Customers who prepay for COD orders are more likely to follow through with their purchase, which can help to reduce the risk of non-payment. Did you know that the return rates of COD orders are 300% to 500% higher than prepaid orders?

It can improve the customer experience: Incentivizing customers to prepay for COD orders can make the purchasing process more convenient for customers, as they will not need to pay for the order when it is delivered.

Did you know that the return rates of COD orders are 300% to 500% higher than prepaid orders?

Every avoided return has a positive ripple effect of saving cost by

→ Avoiding unnecessary Forward & reverse logistics.

→ Avoiding unnecessary Blocked Inventory (Items stuck in transit).

→ Avoiding unnecessary Physical quality check and re-packaging of returned items.

→ Avoiding unnecessary damage to fragile items.


This flow works by incentivising customers to pre-pay for their COD orders. 

Once a customer places a confirmed COD order, send a WhatsApp message to them offering a discount if they pre-pay for the same order.

Depending on your business and the discount offered, 5% to 10% of COD orders will be converted to prepaid.

Tags will be added to the orders so that that fulfilment team will know the status of the orders at the Shopify orders backend. 

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