India is unique—over 60% of online orders are still cash-on-delivery (COD). That makes it easier to attract first-time buyers, but it also creates risk. Many COD orders get canceled, refused, or returned. This is called RTO (Return to Origin), and it eats into profit margins.
Shopify does offer India-specific settings and apps that help reduce COD fraud, cut RTO losses, and streamline returns. Let’s break them down.
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1. Enabling COD with Smart Restrictions
Shopify Payments isn’t fully active in India, but you can still enable COD via payment gateways like Razorpay, PayU, Cashfree, Instamojo.
Best Practices:
- Set COD order value limits (e.g., COD allowed only up to ₹5,000).
- Allow COD for repeat customers only (filter via apps like CODFIRM).
- Use OTP verification before confirming COD orders.
2. Reducing RTO Losses
RTO happens when a COD package is shipped, but the buyer refuses delivery. This creates double shipping charges + wasted packaging.
Shopify solutions include:
- Prepaid COD Conversion: Offer small discounts (₹50–₹100) if buyers prepay via UPI/Wallet.
- COD Confirmation SMS/WhatsApp: Use apps like CODVerify or GoKwik for OTP checks.
- RTO Dashboard Apps: Tools like Shipway and NimbusPost integrate directly with Shopify and flag high-risk orders.
3. Handling Returns Smoothly
Returns are part of e-commerce, but in India, logistics costs are the killer. Shopify helps reduce them by:
- Using India-based 3PL partners (Delhivery, Shiprocket, NimbusPost).
- Setting clear return policies visible on checkout.
- Automating refunds via UPI and Wallets for faster processing.
Pro Tip: Limit free returns to certain categories (fashion) while charging minimal restocking fees for high-RTO items.
4. Shopify Apps That Save You Money
Here are some India-specific Shopify apps worth installing:
| App | Purpose | Benefit |
|---|---|---|
| CODFIRM / CODVerify | OTP Verification | Prevents fake COD orders |
| GoKwik | RTO Risk Analysis | Flags risky orders before shipping |
| Shipway / NimbusPost | Logistics + Returns | Cheaper reverse shipping rates |
| Cashfree / Razorpay | Payment Gateway | Enable COD + UPI refunds |
5. Real Example: How Sellers Save 15–20%
A Delhi-based fashion brand reduced RTO by 18% after:
- Enabling OTP COD confirmation.
- Offering ₹50 off on prepaid UPI payments.
- Using Shipway for cheaper returns.
Over a year, this saved them ₹4.2 lakh in logistics and packaging costs.
Shopify India Settings That Work
- COD is still necessary in India, but you must control it.
- With the right apps + gateways + policies, Shopify makes it easier to reduce RTO and save money on returns.
Cut RTO Losses & Save More with Shopify
Set smart COD limits, automate OTP verifications, and streamline returns with Shopify’s India-specific tools. Thousands of sellers are already saving lakhs every year—why not you?
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