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Adding a COD Fee

The Adding a COD Fee feature allows you to charge an additional fee for orders using the Cash on Delivery (COD) payment method. This helps offset the operational costs associated with COD orders and encourages customers to opt for prepaid options, improving overall efficiency.

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Benefits​

  • Recover Operational Costs: Apply a small fee to cover additional costs associated with COD orders.
  • Customizable Fee Structure: Set a fixed fee or configure it based on order values to suit your business model.
  • Enhanced Profitability: Manage COD-related expenses effectively, ensuring profitability.
  • Encourage Prepaid Orders: Encourage customers to choose prepaid options by transparently displaying COD fees.

How It Works​

When this feature is enabled, the COD fee is added as a shipping fee during checkout. This ensures compatibility with Shopify's payment and checkout process.

To communicate the COD fee and other relevant details, you can use Shopify's built-in settings to display custom messages during the checkout process. This ensures transparency and helps your customers understand the additional charges clearly.

Example​

  • Fixed Fee: Add a flat fee of ₹100 for all COD orders.
  • Conditional Fee:
    • ₹50 for orders below ₹500.
    • ₹100 for orders between ₹500 and ₹1,000.
    • ₹200 for orders above ₹1,000.

What’s Next?​

Ready to set up the COD fee? Visit our Guides section for detailed step-by-step instructions:

How to Set Up a COD Fee in Shopify