How to Protect Your Online Store from Fake COD Orders
Published on 20 Mar 2023
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As the world shifts towards online shopping, the key payment option for most customers remains cash on delivery. While it is the most convenient option for customers to save themselves from fraudulent sellers, it is also a hassle for online stores due to fake COD orders. According to a report published in the Times of India, over 90 percent of new customers choose cash on delivery as their preferred mode of payment. Customers who are wary of fraudulent sellers will accept these orders, but a high number of returns to origin (RTOs) can cut down profits and increase your shipment costs. As a business, you will have to find a logistics partner that offers the COD option. Read on to know all about saving your store from fake COD orders.

Why COD is important?

While quick COD is one of the most exploited features of e-commerce, it plays a crucial role in any online venture. According to a survey published on Business Insider, 83 percent of Indian customers prefer to pay via cash instead of making advance payments for any online order. But why is that? While ordering from a new online store, customers prefer paying after receiving their order to be safe from fraudulent sellers.

Customers also prefer cash on delivery because they want to avoid the hassle of entering their bank details for online transactions and also stay away from online scams. In such cases, cash on delivery is a more accessible option. However, as more than half of the customer base opts for COD orders, it becomes mandatory for online stores to provide that mode of payment. Find a reliable logistics solutions provider that offers nationwide delivery and gets your product safely to customers.

Protecting your store from fake orders

When a customer rejects a COD order, the online seller has to bear shipping charges. Apart from that, there is an additional loss if the product gets damaged in transit. While you cannot always recognise a fake order, here are the things you can do to avoid receiving fake COD orders:

Charge extra for COD orders 
At the payment stage, include a minimal additional charge for COD orders. Explain to your customers that it is part of the shipping charge that will be added to their order and it would reduce the chances of any fake orders. Alternatively, you could provide incentives on online modes of payment to encourage the customers to pay online and stay away from the risk of COD remittance.

Build contact through e-mail
When customers place an order and opt for COD, send them an e-mail to confirm the order. Most fake orders also use fake e-mail IDs. One of the best ways to verify the order is through a confirmation email. If you get a confirmation e-mail, you can process the order and ship it.

Contact your customer through calls
It might happen that the customer missed the e-mail or it’s in their spam folder. Don’t let your business be affected in such cases. Call the customer to cross-verify and be wise and careful with your words, as you can also lose a valuable customer. However, if the number is unavailable or the contact name does not match, there could be something fishy.

A minimum purchase limit, select products for COD
A smart way to tackle COD orders is to have select products available for cash on delivery. Include the products that are less likely to get damaged in transit in your COD inventory. This would prevent the loss in transit. At the same time, keep a minimum purchase limit for COD orders. It cuts down the risk of a bigger scam or fake orders.

Software to detect fake orders
Use third-party software or AI to track, automate, and flag off fishy or fake orders. This would help both the buyer and seller with a seamless shopping experience

Set a COD qualification system
If you are a new seller, this might not work as well for your business. However, if you have a database of the customers who have ordered from you, it becomes easier to recognise genuine orders and only ship to customers who accept COD orders.

How can Ecom Express help? 

Cash on delivery is one of the biggest challenges that sellers face in the e-commerce business. To reduce the number of fake COD orders, find a logistics partner that is credible and reliable. Ecom Express is the preferred partner for both large-scale and small-scale businesses. It has been one of the largest e-commerce logistics providers with a strongly-built system, automated processes. More than 70 percent of their shipments are COD orders, so choose Ecom Express as your preferred logistics partner.  

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