Cash on delivery loss calculator
See what refused cash-on-delivery orders cost you each month, and what they add to the cost of every delivered order.
Change the numbers and the result updates at once.
What does the result mean?
A refused order pays shipping out and back and brings in nothing. The calculation assumes the goods come back resellable.
If the loss is large
Confirm orders before shipping by message or call, ask for a deposit on large orders, and encourage prepayment with a small discount.
If it is small
Cash on delivery works for you: it raises trust and conversion at a bearable cost. Watch the refusal rate monthly.
How is it calculated?
Refused orders = orders × cash-on-delivery share × refusal rate. Loss = refused × shipping × 2.
1,000 orders a month, 70% on delivery, 20% refused, and shipping of 50 each way:
1,000 × 70% × 20% × 50 × 2 = 14,000
140 refused orders, adding 16.28 to the cost of every delivered order.
Questions
How do I lower the refusal rate?
Confirm the order before shipping, make the final price and shipping clear before purchase, and state the delivery time on the product page.
Should I drop cash on delivery?
Not before measuring its effect on conversion. In many markets it is what makes a new customer buy. Cut refusals before cutting the option.
Why is the product cost not included?
Because the goods come back in most cases. If they come back damaged or unsellable, add a share of their cost to the shipping figure you enter.
Related tools
Free shipping threshold calculator
A threshold that lifts the order value without eating your margin.
Profit margin and pricing calculator
The price that gives the margin you want after shipping and payment fees.
Ad profit calculator
The lowest ad return that keeps you from losing, and the most an order may cost.
The next step.
The result is a starting point. In the Growth Audit we compare it with your store's and campaigns' real numbers.