Most Indian online buyers still choose cash on delivery. That brings orders, but also a painful number of parcels that come back unopened. Meanwhile, India pays by UPI more than ever. The trick is to make prepaid the easy, attractive choice — without forcing anyone.
Why this matters
Source: Indian ecommerce logistics research, 2025–2026. Rates vary by category and city.
Each returned parcel costs you delivery both ways and keeps stock out of your hands. Moving even a part of your COD buyers to prepaid makes a real difference.
7 easy ways to move buyers to UPI
- Free shipping on prepaid. Keep a small delivery charge on COD and waive it for UPI. Most buyers notice the difference.
- A small prepaid discount. Even a little off for paying online nudges people.
- Show UPI first at checkout. Make it the default, with COD as an option below.
- Take a small advance on COD. Partial COD asks for a part payment online; the rest is paid at the door. Serious buyers do not mind.
- Send a confirmation message. After a COD order, send a WhatsApp message with a "pay now and save" link. Some buyers switch right there.
- Build trust before payment. Clear return policy, real reviews and your address on the site make people comfortable paying first.
- Limit COD where it hurts. Turn it off for very high-value items or far-away areas where returns are common.
Do not remove COD completely
For many first-time buyers, COD is how they learn to trust a new shop. Removing it can cut orders sharply. The goal is balance: keep COD available, but make prepaid the better deal.
Track it for a month
Note your COD share and your return rate this month. Apply two or three of the ideas above. Compare next month. Most stores see the prepaid share rise without losing orders.
Our stores include UPI and cards through Razorpay, store-level COD control and partial COD on higher plans. See partial COD or COD for online stores.
FAQs
Why do COD orders get returned more than prepaid orders?
Because the buyer has not paid yet, some change their mind, are not home, or ordered on impulse. Prepaid buyers have committed, so far fewer parcels come back.
How can I get more customers to pay by UPI?
Offer free shipping or a small discount on prepaid, show UPI first at checkout, take a small advance on COD, and send a pay-now link in the order confirmation.
Should I stop offering cash on delivery?
Usually not. Many first-time buyers use COD to trust a new shop. Keep it available, but make prepaid the more attractive option.
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