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Cash on delivery or UPI: what should your online shop offer?

· Humaap

Customers in India often prefer to pay when the order arrives, but cash on delivery (COD) has costs. Offering both COD and UPI usually works best.

Cash on delivery

  • Pros: trusted by first-time buyers, no payment friction.
  • Cons: more refusals at the door, cash handling, and fake orders.

UPI

  • Pros: money arrives straight to your account, fewer refusals, no cash to collect.
  • Cons: a few customers are not comfortable paying before delivery.

How to reduce COD problems

  • Confirm every COD order by phone or WhatsApp before packing it.
  • Offer a small discount or free delivery for UPI.
  • Keep a list of customers who refused orders before.
  • Use a delivery fee for low-value COD orders.

Make UPI easy

Show a pay button with the amount already filled in, and your UPI ID as a fallback.

Store Kit supports both, with order tracking and automatic stock — try it free for a month.

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