A prepaid discount moves some buyers off cash on delivery, but it also goes to customers who would have paid online anyway. Enter your order value, COD share, RTO rate and discount to see whether it saves more than it costs, per 100 orders and per month.
Another way to cut RTO without a discount: confirm COD orders by phone before you ship.
Shipping both ways, packaging and damage. The COD / RTO calculator works this out.
Your guess or a test result. The calculator can't know this for your store.
Usually true: a checkout discount applies to every prepaid order.
Example. Work out yours with the COD confirmation call cost calculator.
The prepaid discount costs more than the RTO it saves.
RTO saved by the discount
₹525
14.0 COD orders switch to prepaid
Cost of the discount
₹2,200
44.0 discounted orders
Net effect of the discount
₹-1,675
positive = saves money
Per month (1,000 orders)
Confirmation calls on your 70 COD orders per 100 would cost ₹157.50. They pay for themselves if they stop 1.1 RTO parcels per 100 orders, which is 6.0% of the 17.5 you have today. Calls and a discount can also run together.
Prepaid orders are treated as having no RTO, so the discount's saving errs on the high side. It also assumes buyers who switch were as likely to refuse a COD parcel as other COD buyers. Often they were less likely, which makes the real saving smaller.
RTO saved vs discount cost, per 100 orders
Monthly totals for your order volume
Option to give the discount to all prepaid orders or only to switchers
Break-even for COD confirmation calls on the same orders
All inputs editable; nothing leaves your browser
Decide whether a prepaid discount is worth running before you set it at checkout.
Put a rupee number on the discount against the RTO it prevents.
Plug in the switch rate from an A/B test to see the real effect.
Compare the discount with confirming COD orders by phone.
Average order value, monthly orders, the share that is COD and your RTO rate on COD.
The cash you lose on each returned parcel. The COD / RTO calculator works it out.
The discount percentage and how many COD buyers you expect to switch to prepaid.
Positive net effect means the discount saves more in RTO than it gives away.
For every 100 orders:
The discount often looks cheap until you count the customers who were going to pay online anyway. That is usually what decides it.
A confirmation call costs a little on every COD order and doesn't give money away on prepaid orders. The calculator shows how many RTO parcels per 100 orders the calls must stop to pay for themselves. See how COD confirmation calls work.
Edesy calls each COD customer before dispatch: press 1 to confirm, 2 to cancel, with the answer written back to your store. Pay as you go from a prepaid wallet; share your volume for pricing.
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