Couriers collect cash at the door, deduct their charges and remit the balance, often weekly or twice a week, with a UTR reference for each transfer. Until then, the brand’s cash sits with the courier.
Track the amount awaiting remittance and the age of the oldest delivered-but-unpaid order. Faster remittance plans exist, usually for a fee, and are worth comparing with the cost of the working capital tied up.
Formula
COD awaiting remittance = Delivered COD order value − Amount already remitted
What cash-on-delivery returns cost you each month, per RTO and per COD order, and the prepaid incentive that pays for itself.
Related terms
- Cash on delivery (COD)Cash on delivery is a payment method where the customer pays the courier in cash…
- Settlement cycleA settlement cycle is the time between a customer paying and the money arriving in…
- AWB (air waybill number)An AWB is the tracking number a courier assigns to a shipment, used to track it…
Where this comes up
How to compare couriers on your own dataRate cards tell you what a courier costs. Your orders tell you what it really costs. A method for ranking couriers on delivered rate, COD RTO, speed and cost per delivered order.Part of the growth marketing glossary by Shiva Sharma.