Payments
COD vs Prepaid: A Complete Guide for D2C Brands in India
18 Sept 2026 · 6 min read · ShipPilot Team
Cash on delivery is still popular with Indian shoppers, especially outside metros. But COD orders carry higher RTO risk, a COD collection fee and slower cash flow.
When COD makes sense
- New brands still earning buyer trust
- Tier 2 and tier 3 markets
- Low to mid order values
How to nudge buyers to prepay
- Offer a small prepaid discount or free shipping on prepaid
- Add a modest COD handling fee
- Show UPI options prominently at checkout
- Confirm high-value COD orders before shipping
Managing COD cash flow
Track remittance per AWB and reconcile weekly. ShipPilot shows the COD status of every shipment so you always know what's pending.
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