How to get your COD remitted sooner from your shipping partner?
Published on 19 Jan 2023
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The Cash on Delivery payment method is thriving in the Indian e-commerce industry. From a buyer’s perspective, it is simple. They receive the product and make the payment. But as a D2C seller, you know the pain points. The customer pays the delivery partner with cash, a debit card, or a digital wallet for a COD delivery order. Then, your logistics partner transfers these funds to your bank account. The process is called COD remittance. Unpaid remittances on COD delivery orders are a big concern for firms.

As a business, you face many questions. Do all shipping partners have a provision to issue daily remittances for Cash on Delivery orders? Can they transfer the amount to the bank instead of adding credits to the merchant account? How can sellers reduce failed deliveries and receive the value of goods early? Let’s get answers to these and explore ways to receive quicker COD remittance

Getting swift COD remittance assurance 

Your business as an online retailer is not over with registering a sale and delivery of the product. That is half the work done. Your balance sheet does not reflect the sales unless your shipping partner remits you the cash collected from the customer. Here is the definitive guide on collecting your cash remittances swiftly and regularly.  

Manage orders with uniformity

Before assessing your shipping partner, ensure that the house is in order. Small businesses often operate in an unorganized manner. They are without order management software (OMS). Such companies fail to manage orders with uniformity. Firstly, you should have an OMS. The software should further allow segregating COD delivery orders as remitted and non-remitted. This feature will help you follow up on non-remitted orders. In addition, sending non-remittance reports to your shipping partner also becomes easy. 

SMEs often choose their shipping partner based on distance and price. But what about the timeframe for COD remittance? Depending on your areas of operation, you can have a single logistics partner or multiple partners. Every shipping partner has a specific remittance cycle and amount threshold for transferring the invoice payment. It can vary from 7 to 15 working days. Your funds remain restricted for the period.

Fortunately, some players offer to expedite the process in exchange for a small fee. So, discuss these protocols with your delivery partner before signing an agreement. Removing the Cash on Delivery option does not help either. You certainly don’t want your business to be left out, as a large number of buyers prefer to pay via COD. 

Look For Transparent System Integration

Whether it is geo-coordinates for delivery addresses, digital signatures, or cash collected by the courier partner, technology-driven logistics companies generate digital proofs for every step. A good delivery partner will have all the metrics embedded into their digital run sheets.

As a seller, you can ask them to support system integration with your Enterprise resource planning (ERP) or order management software. This feature lets sellers track deliveries and payments collected by the logistics partner. Once integrated with your ERP, your accounts team can follow up with the shipping partner for pending remittance post delivery. 

Analyze the reasons behind late COD remittances

Several issues can result in late cash on delivery remittances. Possible reasons include delayed delivery of the shipment, too many orders with RTO (return to origin) status, changes in remittance protocols, and a lack of awareness about deposit deadlines. Real-time order tracking and analyzing remarks on RTO orders can help sellers verify and resolve the issue as early as possible. This data set can assist you in identifying the issues and making real-time decisions. Timely action increases the conversion rate of COD remittances.  

Share relevant consumer information

Incomplete or incorrect delivery address is one of the critical reasons for RTOs. The delivery process, especially in tier 2, and 3 cities, becomes easy if the address and contact details are accurate. As a seller, double-check the address, landmark, and contact details. Next, ensure the customer is available at the doorstep during their chosen timeslot and update your courier company. The probability of rejection remains more for a COD delivery order if the customer is unavailable. Remember, successful deliveries ultimately ensure timely COD remittance. 

Why wait for more than two days? 

Logistics companies handling B2B and B2C COD delivery orders in eCommerce can offer the most cost-effective and efficient service. Work with a credible logistics partner like Ecom Express. When two-thirds of a firm’s total shipments are COD delivery orders, the company must deliver the right items within the scheduled time frame. Most importantly, a technology-enabled logistics solutions provider offers 2-day COD remittance. Funds get transferred to your registered bank account within 48 hours. Thus, you can focus on your core business areas without worrying about working capital. 

Avoid remittance delays with a trusted partner 

With most customers, especially first-time buyers with a company, showing an inclination toward Cash on Delivery, businesses often deal with delayed COD remittance. If you’re a small or medium-sized business looking to speed up remittance from your shipping partner, implementing certain measures can help.

Integration between your firm’s order management system and your shipping partner’s platform is essential. Rather than a mere courier company, choose an e-commerce enabler such as Ecom Express, which addresses the needs of online sellers and ensures timely COD remittance.  

Analyze the reasons behind delayed COD remittance and discuss them with your logistics company. If remittances often take longer than acceptable time frames, finding another e-commerce fulfillment company is the best option.

 Are you looking for a reliable logistics partner for e-commerce? You can trust Ecom Express to offer technology-aided logistics support for reliable last-mile delivery and COD remittances. For business collaborations, talk to our representative at +91 8826398220 or write to us at

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