COD is one of the most requested payment options from customers, but it also carries the highest operational risk for sellers. RTO (Return to Origin) rates are significantly higher for COD orders, and every failed delivery adds cost in shipping, handling, and lost inventory cycles. A balanced approach helps satisfy customer expectations while keeping risk under control.

Fields

COD availability is controlled through three configuration fields:

1. Status

This setting decides whether COD is enabled at all.

True → COD option is shown to customers

False → COD is fully disabled, regardless of order value

Support impact:

If a customer reports that COD is not visible, always check the status flag first.

2. Minimum Order Value

This defines the minimum order value required for COD.

If order value < Minimum Order Value → COD is hidden

If order value ≥ Minimum Order Value → COD becomes eligible, assuming status is True

Why it's helpful:

Prevents COD on very small orders where return or cancellation costs exceed margins

Reduces misuse and high return rates for low-value orders

Example:

Minimum Order Value = 299

Customer cart = 250 → COD not allowed

Customer cart = 350 → COD allowed (if below maximum order value)

3. Maximum Order Value

This defines the maximum order value for which COD is allowed.

If order value > Maximum Order Value → COD is hidden

If order value ≤ Maximum Order Value → COD can be offered

Why it's helpful:

Avoids high-value COD deliveries where risk of non-payment is high

Reduces financial exposure from RTO (Return To Origin) losses

Ensures courier partners’ COD limits are respected

Example:

Maximum Order Value = 5000

Customer cart = 4,800 → COD available

Customer cart = 6,200 → COD not available

Why these limits matter

These controls are useful for:

• Reducing RTO losses (COD orders have the highest failure rate)
• Protecting margins on low-value orders
• Preventing fraud on high-value orders
• Aligning with courier partner COD limits
• Improving cash flow predictability

Businesses typically set:

A minimum COD limit to filter out impulse and uncommitted orders

A maximum COD limit to protect against large RTO risks