Two numbers decide whether a COD store makes money: the share of orders that are genuinely confirmed, and the share of confirmed orders that are delivered and paid for. Work them out, then see what each delivered order really costs you.
Confirmed orders ÷ orders received × 100 The share of orders the customer actually confirmed before shipping.
Delivered orders ÷ confirmed orders × 100 The share of shipped parcels that are handed over and paid for on delivery.
Delivered orders ÷ orders received × 100 The number your cash flow cares about: out of 100 orders received, how many get paid.
Watch out: many providers quote a “delivery rate” without saying whether it is based on orders received or orders confirmed. Always ask which one.
The default values are an example. Replace them with your own numbers: nothing is sent anywhere, everything is calculated in your browser.
The calculation assumes only confirmed orders are shipped. Shipping on delivered orders is not counted: you pay it either way.
An illustrative example with the default values: out of 1,000 orders received, 700 are confirmed (a 70% confirmation rate) and 525 are delivered (75% of confirmed orders, an overall delivery rate of 52.5%). The 175 refused parcels cost 175 × (30 + 20) = 8,750 MAD. Confirmation billed at 10 MAD per delivered order costs 5,250 MAD. Total: 14,000 MAD, about 26.7 MAD per delivered order.
Read more: phone order confirmation · how to confirm COD orders · reducing COD returns · our pricing
It is the share of orders received that the customer actually confirmed before shipping: confirmed orders ÷ orders received × 100.
The confirmation rate measures how many orders are confirmed before shipping. The delivery rate measures how many shipped parcels are handed over and paid for. The overall delivery rate, delivered ÷ received, combines the two.
There is no universal number: it depends on the niche, the price, the traffic source and the quality of the calls. The right benchmark is your own history, by product and by ad source.
Bring each offer back to the cost per delivered order, returns included: (service cost + cost of returns) ÷ delivered orders. An offer that is cheaper per confirmation can cost more if it lets more returns through.
Confirm every order with a real call before shipping, check the address with a landmark, confirm the variant and the amount, remind the customer on delivery day and track the parcel until it is handed over.
A call within 10 minutes, up to 4 calls a day for 3 days, 7-day delivery tracking. 10 MAD per delivered order, 10 free orders to start.