How to protect your shop from unpaid cash-on-delivery parcels?

Confirm each order before you ship it. Set a limit on cash-on-delivery (Наложен платеж) orders, and ask for prepaid delivery on bigger orders. Show clear terms before the order and look at the options your courier gives you. Then refused parcels go down, and so does the money you pay for delivery and return.

A refused parcel hurts, especially for a small shop. The good news is that a few simple habits make refusals rarer. The tips work on any platform and with Econt, Speedy and other couriers. What exactly you pay for a refused parcel is in your contract with the courier.

Why a refused parcel costs so much

When a shopper does not collect the parcel, you lose more than the sale. Usually you pay for:

• The delivery to the shopper. If the shopper was to pay it on delivery and refuses, it is usually left to the sender.
• The return to you. The sender usually pays this too.
• Goods that sit still. The parcel spends days on the road and at the office. You cannot sell it meanwhile. Sometimes it comes back with damaged packaging.
• Your time. Packing, calls, putting the goods back in stock.

How much do refused parcels cost you?

The sum is simple. Multiply your orders a month by the share refused. Then by the delivery and return cost of one parcel.

• A small shop. 100 orders a month, 5% refused, €10 for delivery and return. That is 5 parcels, €50 a month, €600 a year.
• A mid-size shop. 300 orders a month, 8% refused, €12. That is 24 parcels, €288 a month, €3,456 a year.
• A bigger shop. 1,000 orders a month, 10% refused, €11. That is 100 parcels, €1,100 a month, €13,200 a year.

The goods that sit still and your time are not in the sum. Do it with your own numbers too. Take last month's orders, count the returned parcels and look at the courier's invoice. It takes little time and shows how much acting is worth.

How to protect your shop: 6 steps

1. Confirm the order before you ship it. Call or send an email. Ship when the shopper confirms. This catches wrong addresses and orders the shopper no longer wants.
2. Set a limit on cash-on-delivery orders. For example up to €150 an order. Above it, ask for a card payment or a bank transfer. A new shopper's first order can have a lower limit. That keeps your risk small.
3. Ask for prepaid delivery. The shopper pays the delivery by card when ordering and pays for the goods on delivery. Someone who has already paid something rarely refuses. And if they do, at least the delivery is paid.
4. Show clear terms before the order. The delivery price and time, who pays for a return, and what happens on refusal. The shopper should see them on the product and in the cart, before ordering. A shopper who knows the terms is rarely surprised at the door.
5. Check the buyer's reputation. There are services where merchants mark shoppers who refused parcels. That is personal data. Before you use them, ask a lawyer how to do it lawfully.
6. Use the courier's options. Notices to the shopper, inspection of the goods, time at the office. More in the next part.

What you can set up with your courier

Econt, Speedy and other couriers offer similar options. Their names and prices are in your contract and in your account with the courier.

• Who pays for delivery. The sender, the recipient, or shared. If the recipient was to pay and refuses, delivery and return are usually left to you.
• What happens on refusal. The parcel comes back to you. Check who pays for the return and how fast it arrives.
• Inspection before payment. The shopper opens the parcel and sees the goods before paying. Some shoppers order with more confidence when they know this.
• Time at the office or locker. How many days the parcel waits for the shopper before it goes back.
• Notices to the shopper. A text or an email that the parcel is coming. The shopper is ready to collect it.

What the law says

Can you ask the shopper to pay for a refused parcel? That depends on consumer protection law and on your terms. We do not give an answer here. Ask a lawyer before you write it into your terms.

CG Shops and cash on delivery

In CG Shops this is ready for you. Cash on delivery and delivery with Econt, Speedy and other couriers are built in, with no plugins. How they work: Cash on delivery and Delivery by courier.

Frequently asked questions

Who pays when a shopper refuses a cash-on-delivery parcel?

Usually the sender, that is you: the delivery and the return. What exactly you pay is in your contract with the courier.

Should I stop cash on delivery to avoid refusals?

Usually not. Many shoppers in Bulgaria want to pay on delivery. It is better to set a limit and confirm orders. On the bigger ones, ask for prepaid delivery.

Is it worth confirming every order?

Confirming catches wrong addresses and orders the shopper no longer wants. But it takes time. So some merchants confirm only orders above a set amount or from new shoppers. Start that way and see what it saves you.

Can I ask the shopper to pay me for a refused parcel?

It depends on the law and on your terms. Ask a lawyer.

More questions: Guides.

You do not have to do it all at once. Pick one step, such as a limit on the amount, and try it this month.

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