COD Remittance Cycle Explained
How COD collection, courier deductions, and seller remittance work in India.
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When a customer pays cash on delivery, the money flows through the courier before reaching you.
Typical flow
- Customer pays courier agent on delivery
- Courier collects and reconciles COD
- Courier deducts shipping + COD fees
- Net amount credited to your wallet or bank (T+2 to T+7)
What gets deducted
- Forward shipping freight
- COD collection fee (usually % with minimum)
- RTO charges if applicable
- GST on shipping services
Tips for cash flow
- Track expected remittance dates per courier
- Reconcile weekly — mismatches are common on high volume
- Use our COD fee calculator to forecast net proceeds
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FAQ
- Why is my remittance lower than collected COD?
- Shipping fees, COD charges, and adjustments for partial RTO are deducted before remittance.
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