{"id":16239,"date":"2024-01-24T09:00:00","date_gmt":"2024-01-24T01:00:00","guid":{"rendered":"https:\/\/blog.ninjavan.co\/en-ph\/?p=16239"},"modified":"2024-04-24T11:26:57","modified_gmt":"2024-04-24T03:26:57","slug":"how-to-reduce-cod-returns","status":"publish","type":"post","link":"https:\/\/blog.ninjavan.co\/en-ph\/how-to-reduce-cod-returns\/","title":{"rendered":"How to Reduce COD Parcel Rejection and Returns"},"content":{"rendered":"\n<p>While most online shopping platforms and ecommerce websites offer plenty of cashless payment options, most customers still prefer cash-on-delivery (COD) payments.&nbsp;<\/p>\n\n\n\n<p>However, while COD <a href=\"https:\/\/blog.ninjavan.co\/en-ph\/cash-on-delivery-pros-cons\/\" class=\"ek-link\">has its pros and cons<\/a>, it can be a major issue for your revenue when dealing with rejected or returned orders.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Rejected and returned COD parcel deliveries can accumulate significant losses in inventory, packing and shipping costs. This can hurt your business and eat into your profits. That\u2019s why many business owners ask: <em>how can you reduce cases of COD returns?&nbsp;<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why do online shoppers prefer cash on delivery?<\/strong><\/h2>\n\n\n\n<p>A 2022 survey published by Statista found that <a href=\"https:\/\/www.statista.com\/statistics\/1325711\/philippines-leading-recent-payment-methods-for-online-shopping\/\" rel=\"nofollow\" class=\"ek-link\">86% of Filipino online shoppers<\/a> pay for their orders through COD. There are many possible reasons for this:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Financial cybercrimes. <\/strong>Some Filipinos may be hesitant to put their credit or debit card information online because of a fear of hackers stealing their data. <strong><br><\/strong><\/li>\n\n\n\n<li><strong>Online scams. <\/strong>Many customers worry that a seller may be part of an online scam that steals their money, especially for high-value items. <strong><br><\/strong><\/li>\n\n\n\n<li><strong>Counterfeit and damaged products.<\/strong> With cashless payments, customers unsatisfied with their order have to go through a long process to get a refund. With COD parcels, customers can inspect a product before giving payment or can return the product without losing their money. <strong><br><\/strong><\/li>\n\n\n\n<li><strong>Lack of funds. <\/strong>Some Filipinos live paycheck-to-paycheck and can\u2019t afford instant cashless payments. COD payments allow them more time to save up for their orders before they arrive.<strong><br><\/strong><\/li>\n\n\n\n<li><strong>No Access to cashless options: <\/strong>Many people don\u2019t have access to debit or credit cards or e-wallets. COD provides them with the advantages of online shopping even without cashless payment options.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p><strong><em>Also read: <\/em><\/strong><a href=\"https:\/\/blog.ninjavan.co\/en-ph\/how-to-avoid-cod-scams\/\" class=\"ek-link\"><em>Be Smart and Take These Steps to Avoid COD Scams<\/em><\/a><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img fetchpriority=\"high\" decoding=\"async\" width=\"600\" height=\"391\" src=\"https:\/\/blog.ninjavan.co\/en-ph\/wp-content\/uploads\/sites\/2\/2024\/01\/COD-parcel-return.jpg\" alt=\"Cod Parcel Return\" class=\"wp-image-16252\" style=\"width:554px;height:auto\" \/><figcaption class=\"wp-element-caption\"><em>Many Pinoys still prefer COD payment when online shopping.<\/em><\/figcaption><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Why do customers return their orders to sellers?<\/strong><\/h2>\n\n\n\n<p>While rejected or returned orders are a problem for both COD and cashless orders, many COD parcels end up marked as Return To Sender (RTS). <strong>Ninja Van<\/strong> has found <a href=\"https:\/\/blog.ninjavan.co\/en-ph\/top-return-to-sender-reasons\/\" class=\"ek-link\">the most common reasons<\/a> for this happening:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Wrong or incomplete order. <\/strong>Customers input the wrong address in the system, which makes it difficult for the courier to find and deliver the package.<br><\/li>\n\n\n\n<li><strong>No one receives the package. <\/strong>If the customer is not present at the delivery address, the customer doesn\u2019t have the option to ask the courier to leave it in a mailbox or with a receptionist because they need payment.<br><\/li>\n\n\n\n<li><strong>Change of mind. <\/strong>Customers might no longer need the product, find the same item for cheaper, or make a mistake while ordering.<br><\/li>\n\n\n\n<li><strong>Wrong, defective, or damaged order. <\/strong>Customers can refuse an order if the item or its quality doesn\u2019t meet their expectations.&nbsp;<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong><em>#NinjaTips:<\/em><\/strong><em> You don&#8217;t have to worry about unsuccessful deliveries. Ninja Van provides 3 delivery attempts for free before returning your rejected or undelivered parcels. Find out other perks you can enjoy when you <\/em><strong><em><a href=\"https:\/\/www.ninjavan.co\/en-ph\/logistics-solutions\/vip-express-delivery?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=ph-blog-how-to-reduce-cod-returns\">become a Ninja Van VIP Shipper!<\/a><\/em><\/strong><\/p>\n<\/blockquote>\n\n\n\n<p>When a customer rejects or returns your parcel, it\u2019s eventually returned to you. This doesn\u2019t mean that there\u2019s no loss involved on your end.&nbsp;<\/p>\n\n\n\n<p>When you consider the packaging costs, shipping expenses for free shipping promos, damaged returned inventory, and customized inventory for sellers who offer personalized products, these costs can add up to a big loss for your profits.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">8 <strong>ways to reduce COD returns<\/strong><\/h2>\n\n\n\n<p>While you can remove COD as a payment option, this can affect your business negatively. Many customers prefer COD \u2013 including some of your repeat customers.&nbsp;<\/p>\n\n\n\n<p>Removing COD entirely may lead customers to find others who offer it. Instead, use these ways to minimize COD parcel rejections and returns.&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/media.giphy.com\/media\/HTMQ8ovByLFD5spqf8\/giphy.gif\" alt=\"\" style=\"width:540px;height:auto\" \/><figcaption class=\"wp-element-caption\"><em>Minimize COD parcel rejects and returns by taking some steps <\/em><br><em>before shipping their orders.<\/em><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\">1. Verify your customers\u2019 order<\/h3>\n\n\n\n<p>Ensure all the details your customer provides \u2013 name, address, and phone number \u2013 are correct. Some ecommerce platforms allow customers to confirm their details, though you can also message your customers to confirm.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Send confirmation photos<\/h3>\n\n\n\n<p>Many businesses also practice preparing orders and sending a photo of the order to the customer. This is proof to both customers and sellers that the order was complete before packaging and shipping.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Provide an accurate expected delivery date<\/h3>\n\n\n\n<p>Some customers reject COD parcels if they arrive unexpectedly and they don\u2019t have the funds to pay for them.&nbsp;<\/p>\n\n\n\n<p>A good way to avoid this is to provide an expected delivery date. If you need to pre-order or have time to customize their order, inform them when their order is ready and how long it can take to ship.&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/media.giphy.com\/media\/h75KJfo1UkZR1OGtwv\/giphy.gif\" alt=\"\" style=\"width:506px;height:auto\" \/><figcaption class=\"wp-element-caption\"><em>Keep your customers updated on their order&#8217;s shipment and arrival.<\/em><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\">4. Improve order packaging<\/h3>\n\n\n\n<p>Reduce the risk of damaged inventory that can no longer be sold by carefully wrapping your items. If a customer accepts the order, proper packaging can improve customer satisfaction as it reduces damage.&nbsp;<\/p>\n\n\n\n<p>If they reject or return to sender, your inventory\u2019s quality is still good to resell.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Set purchase limit on COD orders<\/h3>\n\n\n\n<p>Minimize your losses by placing an order value limit on COD orders. If your website or ecommerce platform has the option, set a purchase limit that prevents COD payments.&nbsp;<\/p>\n\n\n\n<p>Otherwise, you might have to cancel orders to minimize the risk of loss.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. Transparent pricing and additional charges<\/h3>\n\n\n\n<p>Make sure your customers know the total cost of the item before confirming their orders. Hidden fees or additional service charges may cause parcel rejection and even bad reviews for your business. Ecommerce platforms provide a clear total amount that includes the cost of their order and shipping.&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/media.giphy.com\/media\/scTistpCIcfncVEts9\/giphy.gif\" alt=\"\" style=\"width:498px;height:auto\" \/><figcaption class=\"wp-element-caption\"><em>The customer must know the exact amount of their order, including <br>additional service charges and shipping.<\/em><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\">7. Offer COD to verified customers<\/h3>\n\n\n\n<p>If you run your own online store, you may consider providing COD as an option only to verified users. This could be users with confirmed mobile numbers or email addresses or users who have already purchased from your store in the past.&nbsp;<\/p>\n\n\n\n<p>COD from verified customers are more likely to complete their purchases.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">8. Choose a reliable courier partner<\/h3>\n\n\n\n<p>A dependable logistics company that allows COD parcel deliveries can help you minimize the losses of RTS instances. They\u2019re less likely to result in failed deliveries and ensure proper handling of your parcel to avoid damage.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Minimize COD returns\u2019 impact on your business with Ninja Van<\/strong><\/h2>\n\n\n\n<p>Providing COD opens the door to more sales opportunities. However, you need to find ways to mitigate the risks of returns and rejected parcels.&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img decoding=\"async\" width=\"600\" height=\"436\" src=\"https:\/\/blog.ninjavan.co\/en-ph\/wp-content\/uploads\/sites\/2\/2024\/01\/6292022.jpg\" alt=\"Ninja Van COD service\" class=\"wp-image-16263\" style=\"width:510px;height:auto\" \/><figcaption class=\"wp-element-caption\"><em>Ninja Van is your best COD shipping partner!<\/em><\/figcaption><\/figure>\n<\/div>\n\n\n<p>With <strong>Ninja Van<\/strong>\u2019s postpaid delivery services, you can experience the different ways we help our business partners minimize their losses:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Fast delivery: <\/strong>Our flexible delivery solutions offer free 3 delivery attempts to complete fulfillment. We provide estimated delivery dates to help your customers anticipate when to receive their orders.<br><\/li>\n\n\n\n<li><strong>Fast COD remittances: <\/strong>You\u2019ll never have to follow up on your COD payments because we\u2019ll send them to you immediately. Plus enjoy low COD rates as low as 1.5%.<br><\/li>\n\n\n\n<li><strong>No RTS fees: <\/strong>In case of COD parcels getting returned or rejected, we don\u2019t charge a fee to ship the parcel back to your address. We also provide liability coverage for lost and damaged parcels to minimize your losses.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Find out how you can get the best COD shipping deals, exclusive rewards and big rebates with <strong><a href=\"https:\/\/www.ninjavan.co\/en-ph\/logistics-solutions\/vip-express-delivery?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=ph-blog-how-to-reduce-cod-returns\">Ninja Van\u2019s VIP Shipping!<\/a><\/strong><\/p>\n\n\n\n<p><em><strong>More tips to optimize your ecommerce deliveries:<\/strong><br><a href=\"https:\/\/blog.ninjavan.co\/en-ph\/ninja-van-postpaid-shipping\/\" class=\"ek-link\">The Benefits of Postpaid Shipping for E-commerce<\/a><br><a href=\"https:\/\/blog.ninjavan.co\/en-ph\/3pl-logistics-benefits\/\" class=\"ek-link\">How 3PLs Help Your Ecommerce Business Grow<\/a><br><a href=\"https:\/\/blog.ninjavan.co\/en-ph\/inventory-management-for-online-sellers\/\" class=\"ek-link\">Inventory Management Techniques for Online Sellers<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rejected and returned COD parcels can affect your income and cash flow. So find ways to minimize them.<\/p>\n","protected":false},"author":5,"featured_media":16246,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"8 Ways to Reduce COD Returns","_seopress_titles_desc":"Minimize rejected parcels and COD returns to protect your cash flow. Follow these helpful tips.","_seopress_robots_index":"","footnotes":""},"categories":[201,102],"tags":[2037,2038,2035,2036],"class_list":["post-16239","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-beginner-smes","category-business-tips","tag-cod-meaning-in-business","tag-cod-parcel-delivery","tag-cod-parcels","tag-cod-returns"],"_links":{"self":[{"href":"https:\/\/blog.ninjavan.co\/en-ph\/wp-json\/wp\/v2\/posts\/16239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.ninjavan.co\/en-ph\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.ninjavan.co\/en-ph\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.ninjavan.co\/en-ph\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.ninjavan.co\/en-ph\/wp-json\/wp\/v2\/comments?post=16239"}],"version-history":[{"count":15,"href":"https:\/\/blog.ninjavan.co\/en-ph\/wp-json\/wp\/v2\/posts\/16239\/revisions"}],"predecessor-version":[{"id":19241,"href":"https:\/\/blog.ninjavan.co\/en-ph\/wp-json\/wp\/v2\/posts\/16239\/revisions\/19241"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.ninjavan.co\/en-ph\/wp-json\/wp\/v2\/media\/16246"}],"wp:attachment":[{"href":"https:\/\/blog.ninjavan.co\/en-ph\/wp-json\/wp\/v2\/media?parent=16239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.ninjavan.co\/en-ph\/wp-json\/wp\/v2\/categories?post=16239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.ninjavan.co\/en-ph\/wp-json\/wp\/v2\/tags?post=16239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}