Cash on delivery: how to reduce refused and unclaimed parcels

Every cash on delivery parcel that comes back costs you twice: you pay shipping both ways, and the goods spend days in transit instead of on sale. Most refusals can be prevented before the parcel leaves the warehouse. Here is what works in practice, and what to do with the parcels that still come back.

Why COD parcels come back

In Romania, Bulgaria, Greece and much of the Balkans, cash on delivery is still how many people prefer to pay online. The customer orders without paying anything upfront, which is exactly why some orders are impulsive. The most common reasons for a refused or unclaimed parcel are:

• the customer ordered on a whim and changed their mind;
• the parcel took too long and the customer bought elsewhere;
• the delivery cost came as a surprise at the door;
• a wrong phone number or address, so the courier could not reach anyone;
• the customer never went to the pickup point or locker before the deadline;
• fake or test orders.

Almost every one of these can be fixed in your store or in the warehouse, not at the customer's door.

8 ways to reduce refused COD parcels

1. Confirm orders, especially large or unusual ones

A short call or text message before shipping filters out many impulse and fake orders. You do not need to call everyone. Start with orders above a certain value, first-time customers, and orders where the name or address looks odd.

2. Show the full price before checkout

Shipping and any cash on delivery fee should be visible in the cart, not something the customer learns from the courier. A higher amount than expected is one of the easiest refusal reasons to avoid.

3. Let the customer choose the courier and delivery method

Some customers want home delivery, others a pickup point or a parcel locker. When customers pick what suits them, they are far more likely to collect the parcel.

How it works with us: you add the couriers we offer to your store and the end customer chooses. We work with 40+ couriers and offer cash on delivery in 24 countries.

4. Ship fast

The longer the customer waits, the more likely they are to change their mind. A parcel that arrives the next day is collected far more often than one that arrives a week later.

How it works with us: orders received by 14:00 are packed and dispatched the same day. Our 8 warehouses in 7 countries all ship across Europe: next day within Romania, 1 day within Bulgaria, 1-2 days in Greece, 1 working day from Slovakia to Czechia, Poland, Hungary and Slovenia, and 2 days to Germany and Austria.

5. Keep the customer informed

A message with the tracking number and a reminder when the parcel is waiting at the pickup point or locker reduce unclaimed parcels. A customer who knows when the parcel arrives is expecting it.

6. Check the phone number and address at checkout

A required phone field with the right format, a postcode check and a clear field for the pickup point or locker save many returns. Also watch for repeat orders from one phone number under different names.

7. Ship exactly what was ordered

A wrong size or a missing item leads to a refusal on the spot and a bad review. Accurate picking and packing is part of reducing refusals.

How it works with us: 96% of orders are recorded on video during packing, so in a dispute you have proof of what was sent.

8. Track refusals by product, channel and region

Refusals are rarely spread evenly. Often one product, one ad campaign or one region causes most of the returned parcels. Keep your own list of customers who have refused several times, and confirm their orders by phone.

What happens to a parcel that still comes back

An unclaimed parcel is not a loss if it is checked quickly and the goods go back into stock. This is how we handle it:

• we scan the waybill and the system finds the original order and the products that should be inside;
• we open the parcel on video and scan every product one by one;
• products in good condition go back to stock, defective ones go to a separate area, and anything not scanned is recorded as missing;
• processing takes 1 to 4 working days, usually 2.

You see all of this in the panel. Read more about our fulfillment services in Europe and our guide to cash on delivery in Europe.

Getting your COD money

Refusals are one side. The other is how fast you receive the money from delivered parcels. In the BigArena panel you choose how often your cash on delivery payouts arrive, from 3 times a week to once a month.

Frequently asked questions

What is the difference between a refused and an unclaimed parcel?

A refused parcel is one the customer did not accept at delivery. An unclaimed parcel is one nobody collected from the pickup point or locker before the deadline. In both cases it goes back to the sender.

Who pays for the return shipping?

Usually the sender. The price depends on the courier and your contract, so check it before you calculate your margin per product.

Should I stop offering cash on delivery to avoid refusals?

In markets where many customers expect cash on delivery, dropping it means losing orders. It is better to offer both cash on delivery and card payment, and to reduce refusals with the steps above.