5 Ways to Reduce COD Returns and Boost Your Bottom Line in 2025

Cash on Delivery (COD) orders are a double-edged sword for Indian e-commerce. While they help you reach customers who prefer cash payments, they also come with a high return rate that can devastate your margins.

The COD Return Problem

On average, COD orders have a 15-25% return rate compared to just 2-5% for prepaid orders. Every return means:

• Lost shipping costs
• Product handling and restocking
• Potential damage to inventory
• Wasted marketing spend

5 Proven Strategies to Reduce COD Returns

1. WhatsApp Verification Before Shipping

Send a quick WhatsApp message with a verification code when a COD order is placed. Only ship if the customer confirms. This simple step can reduce fake orders by 40-50%.

2. Address Validation

Use automated address validation tools to catch incomplete or incorrect addresses before dispatch. This prevents delivery failures and returns.

3. Customer Communication

Keep customers informed about their order status via WhatsApp. Send order confirmation, shipping updates, and delivery reminders. Engaged customers are less likely to return.

4. Smart Order Filtering

Flag high-risk orders based on:

• New customer accounts
• Multiple failed delivery attempts
• Suspicious address patterns
• Large order values from new customers

5. Post-Purchase Engagement

Follow up after delivery with a WhatsApp message asking for feedback. Happy customers are less likely to return items, and you can address concerns before they become returns.

The Bottom Line

By implementing these strategies, most Shopify stores see a 20-30% reduction in COD returns within the first month. The key is starting with WhatsApp verification—it's the fastest and most effective way to filter out fake orders.

Ready to reduce your COD returns? Start with Level's WhatsApp verification system and see results in your first week.