How Pakistani E-Commerce Sellers Can Reduce COD Returns

17 July 2026

COD Returns and Delivery: Key E-Commerce Shipping Lessons for Pakistan’s Sellers

Watching a package travel across the country only to be refused at the customer’s doorstep is a costly setback. As local retailers try to scale up their businesses in an already competitive market, losses from COD returns in Pakistan can make a massive dent in their margins. Every rejected shipment drains your revenue, wastes packaging, and leaves you dealing with unhappy customers.

This challenge stems from a deeply ingrained cash culture. While digital payment adoption is gaining momentum, nearly 70% of online shoppers in Pakistan still prefer cash on delivery when purchasing online.

If you’re looking to protect your business and discover how to reduce cash on delivery returns for online stores in Pakistan, verify customer intent by making confirmation calls, screening out high-risk orders, and encouraging digital prepayments. Implementing these e-commerce shipping lessons for Pakistan’s sellers can save your business thousands of rupees every month.

The COD Reality for Pakistani E-Commerce Sellers

Before exploring ways to lower refused COD orders, it helps to understand why the payment method remains widely preferred and the distinct challenges it creates for retailers.

Why COD Dominates Pakistan's E-Commerce Market

Cash-on-delivery in Pakistan's e-commerce sector continues to dominate because of its convenience and security. When customers pay at their doorstep, they eliminate the upfront financial commitment and protect themselves from online scams. If a product is defective or wrong, they can simply hand it back, avoiding lengthy refund procedures. Additionally, over 30% of the population does not have access to bank accounts, which makes cash payments the only way to access the digital retail space. This is why relying on COD delivery in Pakistan remains essential for brands looking to build a broad national presence.

The Hidden Cost of High COD Return Rates

Despite its advantages, one of the biggest challenges retailers face with COD orders is the high rate of return-to-origin (RTO) shipments. Customers may cancel their order at the last minute or refuse delivery when the courier arrives, leaving sellers with additional shipping costs, wasted time, and lost revenue. Products may also be lost or damaged during transit. Even when returned items are received, they cannot be resold immediately. Staff must first inspect them for damage, repackage them, and update inventory records, creating additional work and slowing down operations.

What is a Delivery-First Approach in E-Commerce?

Adopting a delivery-first e-commerce approach in Pakistan can help local businesses build a more customer-centric brand. Rather than viewing delivery as a final operational step, this strategy places it at the centre of business decisions to ensure a smooth and reliable experience from checkout to doorstep.

For practical tips on becoming a delivery-first business, explore our guides to improving your last-mile delivery performance and building customer loyalty with every delivery.

1. Confirm Before You Ship

Many returned shipments can be prevented before they ever leave your warehouse.

Order Confirmation Calls and WhatsApp Verification

Implementing COD confirmation calls in Pakistan allows your staff to verify delivery addresses and ensure that the purchase was intentional. If a buyer is non-responsive, you can cancel the order before shipping. You can also require a one-time password (OTP) sent via SMS during checkout to confirm that the phone number is active.

Using WhatsApp for COD Order Confirmation in Pakistan

More brands are now using WhatsApp to automate confirmations, leveraging its massive popularity as a free and accessible communication channel. Here is a simple template you can copy and adjust to your brand:

"Hi [Name], thank you for placing an order! To confirm your delivery address: [Address], please reply with 1. To cancel, reply with 2."

2. Screen for Fake and High-Risk COD Orders

Most fake orders come from a small, predictable group of repeat offenders rather than random customers.

Warning Signs of a Potentially Fraudulent Order

To combat COD fraud in Pakistan's e-commerce sector, keep an eye out for these warning signs:

Incomplete shipping details
Unusually large, high-value orders from new customers
Phone numbers that go straight to voicemail or remain unresponsive
Known repeat returners who consistently order and cancel shortly after

If an order matches these red flags, hold the package and require secondary confirmation, or request a prepaid payment method before dispatch.

3. Incentivise Customers to Go Prepaid

When customers pay upfront, they are more committed to their purchase.

Prepaid vs Cash on Delivery: Which Is Better for Pakistan’s Sellers?

When it comes to the prepaid vs COD debate in Pakistan, shifting customer behavior will take time, but small incentives can guide customers toward digital payments.

Discounts and Free Shipping for Prepaid Orders

Offering a 5% to 10% discount, cashback, loyalty points, or free delivery on prepaid orders will encourage customers to follow through with their purchases. While the goal is not to eliminate cash payments, increasing prepaid adoption can help reduce return rates for e-commerce businesses in Pakistan.

4. Set Clear Delivery Expectations Upfront

Many delivery failures happen because the buyer did not know when the package would arrive or did not have cash ready.

Communicating Delivery Timelines at Every Touchpoint

Follow these e-commerce delivery tips for Pakistani sellers to ensure clear communication:

Give clear timelines at checkout and in the initial confirmation
Send specific time slots via SMS the day prior and allow buyers to reschedule if needed
Follow up with a direct reminder on the actual delivery day

How Real-Time Tracking Reduces Refusals at the Door

Providing a live tracking link ensures customers know exactly when to expect the courier. When a package is out for delivery, sending an automated alert allows the buyer to ensure someone is home with cash to receive it. To learn more about best practices for e-commerce delivery in Pakistan, read through our guide on proactive package tracking.

5. Build a Transparent Returns Policy

When customers know they can easily exchange an item, they are more confident in completing their purchase.

Turning a Return Into a Repeat Customer

Buyers naturally feel anxious when shopping online from new brands. Having a clear, fair returns policy removes that purchase anxiety entirely. Here’s how you should handle returns to build long-term loyalty:

Resolve requests immediately so the customer feels valued and respected.
Take an exchange-first approach by offering a seamless way to swap the product for a different size or colour.
Use a simple self-service link or a quick WhatsApp template for easy submissions instead of a complex portal.
Incentivise exchanges by providing free replacement shipping.

To build a robust framework, review our tips on how to write a small business return policy and explore ways of streamlining your reverse logistics process.

6. Choose a Reliable Delivery Partner

Your delivery partner plays an important role in the customer experience. For domestic COD orders, assess providers based on their coverage, tracking capabilities, delivery communication, rescheduling options and return-to-origin processes.

Preparing Your Business for Cross-Border Growth

Working with a trusted provider like DHL can simplify e-commerce logistics for Pakistan's SMEs by as they expand into international markets. Through its global network, customs expertise and digital tools, businesses can:

Reach customers across more than 220 countries and territories.
Navigate customs requirements and prepare the documentation needed for international shipments.
Organise shipments, schedule pickups and monitor deliveries through MyDHL+.
Import orders and generate shipping labels automatically through DHL Express Commerce.
Manage orders across multiple online stores and sales channels in one place.
Track shipments from collection through to delivery.
Send customers automated shipment and delivery updates.
Give recipients greater visibility and flexibility through On Demand Delivery, including options to adjust delivery arrangements where available.

Explore key factors to consider when choosing a courier service in Pakistan to learn what sets us apart.

Why is the COD return rate so high in Pakistan?

The cash-on-delivery return rate in Pakistan is high because orders require no upfront financial commitment. This lack of investment leads to frequent cancellations, making a cash order highly likely to fail. Impulse buying on social media platforms also drives these rates up.

How to prevent fake COD orders for Pakistan’s ecommerce sites?

To avoid fake COD orders in Pakistan, merchants can use confirmation calls or send an automated SMS OTP before shipping. Screening for incomplete shipping details and non-responsive numbers helps filter out high-risk transactions before they leave your warehouse.

Should I offer both prepaid and COD options?

Yes, offering both payment options is recommended. Providing secure digital payment methods reduces cart abandonment for digital buyers, while keeping cash on delivery ensures your store remains accessible to shoppers who do not use digital banking.

What is a good COD return rate benchmark for Pakistan?

Roughly 1 in 5 parcels shipped against a COD order is returned to origin undelivered, putting the national average RTO rate for e-commerce between 18% and 20%. To protect your business margins and maintain stability, you should aim to keep your COD return rates in Pakistan below this 20% average.

How does DHL Express support Pakistani e-commerce sellers?

DHL Express helps Pakistani businesses ship products to customers overseas through international express delivery, customs expertise and end-to-end shipment visibility. Digital tools including MyDHL+ and DHL Express Commerce can also simplify shipment preparation, order processing, documentation and tracking.

How can I improve delivery success rates in Pakistan?

To improve delivery success rates in Pakistan, businesses should confirm orders before shipping, verify customer details, communicate delivery timelines clearly, provide real-time tracking updates, and partner with a reliable logistics provider. These measures help reduce failed deliveries, refused orders, and return-to-origin (RTO) shipments.

Delivering Better, Reaching Further

COD returns remain a significant operational challenge for Pakistan’s e-commerce sellers. Stronger order verification, clear delivery communication and careful selection of domestic delivery partners can help businesses reduce refused orders and protect their margins.

As sellers expand into new markets, DHL Express can support their growth through international delivery, customs expertise, end-to-end shipment visibility and digital shipment-management tools.

Ready to reach customers beyond Pakistan?

Explore DHL Pakistan's global shippinge-commerce delivery solutions and or contact our team today to discuss your cross-border specific shipping needs.