₹1 Lakh Store
⌘K
GETTING STARTED
FIND — Get an Idea
VALIDATE — Hit PMF (Phase 3)
UNIT ECONOMICS — First (Phase 4)
SCALE — Build to ₹1L/mo
    • Supplier Sourcing SOP
    • MOQ Negotiation Scripts
    • Quality Control Checklist
    • Inventory Planning Model
    • Reorder Point Calculator
    • Shiprocket Setup Guide
    • 3PL vs Self-Fulfillment
    • COD Remittance Cycle
    • Returns Management SOP
    • Packaging Material Vendors
AI & AUTOMATION
ANALYTICS & DATA
FINANCE
TOOLS & CALCULATORS
RESOURCES
  1. SCALE — Build to ₹1L/mo
  3. COD Remittance Cycle

05 — Supply Chain

COD Remittance Cycle

COD accounts for 60-70% of Indian D2C orders. Understanding the remittance cycle is critical for cash flow management.
60-70% COD7-14 Day Remittance₹20-40 Fee/Order

60-70%

COD Orders

Of total Indian D2C orders

25-40%

RTO Rate

Cash on Delivery returns

7-14 Days

Remittance Cycle

From delivery to your bank

₹20-40

COD Fee/Order

Razorpay/Shiprocket charges

COD Remittance Timeline

1

Order Placed (COD)

Customer selects Cash on Delivery

2

Order Shipped

Courier picks up from your warehouse

3

Delivery Attempt

Courier attempts delivery (1-3 attempts for COD)

4

Payment Collected

Courier collects cash from customer

5

Cash Deposited

Courier deposits to payment gateway (1-3 days)

6

Remittance to You

Razorpay/Shiprocket remits to your bank (7-14 days from delivery)

COD Cost Breakdown per ₹599 Order

ComponentAmountNotes
Product Price₹599Selling price
COD Fee-₹20-40Razorpay/Shiprocket charge per COD order
Higher RTO Risk-₹40-60 (avg)25-40% of COD orders get returned, costing ₹80-150 each
Net Effective Revenue₹499-539You receive this after 7-14 days
Cash Flow Impact: COD orders mean you pay for product + shipping + ads TODAY, but receive payment 7-14 days AFTER delivery. With 60% COD orders, plan for at least 60% of your revenue to arrive 2-3 weeks late. Budget accordingly.

COD Optimization Strategies

Reduce RTO

Confirm COD orders via WhatsApp

Call high-value COD orders before shipping

Offer ₹100 off for prepaid orders

Show "Only 2 left" urgency

Set max COD order limit (₹2,000)

Faster Cash

For prepaid orders, Razorpay settles in T+2. For COD, expect 5-10 business days from delivery confirmation regardless of gateway

Shiprocket for aggregated remittance

Track all pending remittances daily

Maintain 20% cash buffer for COD float

Push prepaid with 5-10% discount

COD Management — Must Complete