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COD Caps & Failed Deliveries: How Courier Limits Hit Your Margin

Courier COD caps change your COD mix. Failed COD deliveries are pure loss — outbound shipping, return legs and handling with zero revenue.

Short answer: Courier COD caps change your COD mix. Failed COD deliveries are pure loss — outbound shipping, return legs and handling with zero revenue.

Hedge: fee figures are illustrative; confirm the live Seller Centre rate card. Not tax/legal advice.

Key table

OutcomeRevenueHidden cost
COD deliveredOrder valueNormal fees+COGS
COD failed0Two-way ship+handle
COD share risesCash timing shiftsFail rate × loss

What to do

  1. Track COD fail rate by state and courier
  2. Price COD SKUs with fail cost loaded
  3. Offer prepaid incentives where margin is thin
  4. See COD failed-delivery cost deep-dive

Links and tools

Internal reading: cod · returns · fees_sp · price.

Model fees with the fee calculator.

Inseller

Inseller is the profit layer next to Seller Centre — actual fees, ads and SKU contribution so dashboards do not hide red contribution margin.