Cash on Delivery (COD) builds trust.
Especially for first-time buyers.
That’s why we still offer it on selected products — even though, from a business perspective, it hurts us.
Let’s explain honestly what happens behind the scenes.
The Harsh Reality of COD in India
Across D2C brands, 60–70% of COD orders end in RTO (Return to Origin).
What does that mean?
- The product is shipped.
- It reaches the customer’s city.
- Delivery attempt is made.
- Customer refuses / doesn’t answer / gives wrong address.
- The package is shipped back.
No revenue.
But full cost.
And this is not a small cost.
What Actually Happens Financially
Let’s break it down with simple math.
Step 1: Acquisition Cost
Assume we spend ₹100 on ads to generate one COD order.
Now imagine 60% of COD orders are fake or undelivered.
So if 10 COD orders come in:
- 6 will return (RTO)
- 4 will get delivered
That means ₹1,000 ad spend (₹100 x 10 orders)
But only 4 real delivered orders.
Now the real acquisition cost per delivered order becomes ₹250
(₹1,000 ÷ 4)
Your ₹100 CAC just became ₹250.
That’s 2.5x already — before logistics.
Step 2: Logistics Costs (The Silent Killer)
For every COD order — delivered or not — we pay:
- Forward shipping charge (warehouse → customer)
- COD handling charge (extra fee charged by courier)
- Reverse shipping charge (customer → warehouse if RTO)
- Packaging & handling
- Inventory blocking cost
For RTO orders, we pay:
- Forward shipping
- COD charge
- Reverse shipping
- Processing cost
And we get zero revenue.
On average, one failed COD order can cost ₹120–₹200 in pure logistics burn.
Now multiply that by 60%.
That’s where margins collapse.
Step 3: What Happens Next?
To survive, most brands do one of two things:
Option 1:
Increase product prices for everyone.
Option 2:
Compromise on quality.
Lower fabric quality.
Cheaper packaging.
Lower GSM material.
Inferior finishing.
Because the losses have to be covered somewhere.
The Unfair Part
The genuine buyer — who was always going to accept the parcel —
Ends up paying extra.
Why?
Because fake COD orders inflate:
- Customer acquisition cost
- Logistics cost per delivered order
- Operational handling cost
- Cash flow blockage
- Damage & restocking loss
So to maintain sustainability, brands increase prices across the board.
In simple words:
A few fake COD orders
Force thousands of genuine buyers
To pay more.
The Truth About Pricing
If competitors sell a product at ₹2500+,
We can offer the same quality under ₹2000.
How?
Because we actively try to reduce:
- RTO losses
- COD dependency
- Wasteful logistics burn
When prepaid orders increase:
- Acquisition cost per delivered order drops
- Logistics efficiency improves
- Cash flow stabilizes
- Prices can remain lower
- Quality remains uncompromised
Why We Still Offer COD
We understand trust matters.
Especially for:
- First-time buyers
- High-ticket items
- New customers discovering us
So yes — we bear the loss.
But we request this:
If you trust us, choose prepaid.
You’re not just helping us.
You’re helping:
- Keep prices lower
- Maintain premium quality
- Build a sustainable Muslim brand
- Protect genuine buyers from unnecessary price hikes
The Bigger Vision
We don’t want to be a brand that inflates prices to compensate for fake behavior.
We want to build:
- Transparent systems
- Fair pricing
- Premium quality
- Long-term sustainability
Every prepaid order strengthens that mission.
If you’ve read this far — thank you.
Your trust allows us to keep quality high and pricing honest.
And that’s how we grow together.