E-commerce · Cash on delivery
How do you reduce COD refusals and unclaimed parcels in Central and Eastern Europe?
Short answer
Most COD failures come from weak commitment at order time and slow or unclear delivery: impulse orders that aren't confirmed, long delivery times, poor notifications, pickup points the customer didn't really choose, and fees that surprise them. Confirm orders, deliver fast, notify well, and make pickup easy.
Measure the share of shipped orders that are delivered and paid, and the full cost per successfully delivered order, including returns and COD fees, per country and carrier.
Why COD still matters in CEE
In several Central and Eastern European markets, a large share of online shoppers still prefer to pay on delivery, especially for first purchases from brands they don't know. Offering COD lifts conversion. The cost shows up later: parcels refused at the door, parcels never collected from pickup points or lockers, return shipping, COD fees, and cash that arrives days or weeks after delivery.
The two KPIs that matter
- Delivery rate: the share of shipped orders that are successfully delivered and paid. Track it per country, carrier, delivery method (home, pickup point, locker), product and traffic source.
- Cost per successfully delivered order: outbound shipping, COD fees, failed-delivery and return costs, and handling, divided by orders actually delivered and paid. This is the number to optimise, not the outbound rate.
What drives refusals and unclaimed parcels
| Driver | What helps |
|---|---|
| Impulse or fake orders | Order confirmation by SMS, email or call for COD; block repeat refusers; check traffic sources with high refusal rates |
| Slow delivery | Same-day dispatch, local fulfilment, the fastest carrier per market; commitment fades every day the parcel takes |
| Weak notifications | Clear messages in the local language: dispatch, out for delivery, ready for pickup, reminders before pickup deadline |
| Pickup point not really chosen | Let customers choose the point or locker at checkout; nearest-point defaults increase unclaimed parcels |
| Short pickup windows | Ask carriers for longer storage or reminders; check what each network offers |
| Surprise costs | Show any COD fee clearly at checkout; no extra charges at the door |
| Payment friction | Card payment at the door or locker where carriers support it |
Carrier contracts for COD
COD terms are often where money leaks. Compare and negotiate:
- COD fee per parcel (fixed or percentage) and how it's invoiced.
- Payout frequency and timing of the collected cash.
- Price of returns for refused and unclaimed parcels, and how fast they come back.
- Storage time at pickup points and lockers, and reminder notifications.
- Card-at-delivery options.
- Data: delivery and refusal reasons per parcel, so you can act on them.
In CEE, the dominant pickup-point and locker networks, national posts and international carriers each have strengths that vary by country. Benchmark several per market; the best choice for Czechia may not be the best for Hungary.
Launching COD in a new country (e.g. Romania or Croatia)
- Check local habits: share of COD, preferred pickup networks, delivery expectations.
- Shortlist carriers with strong COD and out-of-home coverage; get COD terms and storage times in writing.
- Set up order confirmation and local-language notifications before the first order.
- Start with a controlled volume; track delivery rate daily for the first weeks.
- Decide the refusal policy: blocking repeat refusers, prepayment for risky orders.
- Review cost per successfully delivered order after a month and renegotiate where the data supports it.
Who this is for, and who it isn't
A good fit
- DTC brands shipping thousands of COD orders a month in CEE
- Brands launching COD in new countries
- Brands that need an owner for carrier and 3PL relationships
Not a good fit
- You want a guaranteed delivery-rate number before any analysis
- Call-centre staffing for order confirmation
- Markets without COD demand
How I help
As your Fractional Head of European Delivery & Returns (from €2,250/month) I own the carrier and 3PL relationships against these two KPIs: audit, plan, renegotiation, new-country launches and monthly reviews. If you want a one-off diagnosis first, the Delivery & Returns Network Review (from €1,750) covers it.
I've worked with CEE and European out-of-home and parcel networks, including InPost and FAN Courier, and built PUDO and locker propositions across European markets in international product development at Hermes. I work from data: delivery outcomes per carrier, method and region, not opinions.
Questions
What delivery rate is good for COD?
It depends on country, category, price point and traffic source, so compare against your own baseline per segment rather than a generic benchmark. The trend after each change matters more than the absolute number.
Should we drop COD to avoid refusals?
Usually not in markets where shoppers expect it; you'd lose more sales than you save. Reduce refusals first, and consider prepayment incentives.
Are lockers better than home delivery for COD?
They can be faster and cheaper, but only if customers choose the locker themselves and can pay easily there. Measure per method.
How quickly can we see improvement?
Order confirmation and better notifications often show results within weeks. Carrier changes and renegotiations take longer.
Free discovery call
COD delivery rate too low? Let's find where it leaks
30 minutes, no cost. Bring your lanes, volumes and questions; you leave with a clear next step, whether or not we work together.