For most online shops in Bangladesh, delivery is where profit is made or lost. Customers commonly prefer cash on delivery (COD) because it lets them see the product before paying. Sellers depend on couriers to deliver quickly, collect cash and settle payments. When the process works, customers return. When parcels are delayed, damaged or refused at the door, margins disappear quickly.
This guide explains how to set up courier delivery and COD for a small online shop: choosing couriers, understanding charges, confirming orders, packaging, handling returns and receiving settlements. Courier charges and policies change, so always check current rates and terms with each provider.
Quick overview
- Couriers: several e-commerce courier services offer merchant accounts with pickup, delivery and COD collection.
- Charges: usually a delivery fee based on location and weight, plus a COD charge (often a small percentage) – check each courier’s current rates.
- Order confirmation: call or message customers before dispatch to reduce refusals.
- Packaging: protective, branded where possible, with clear labels.
- Returns: plan for refused and returned parcels.
- Settlements: couriers transfer collected COD to your bank or mobile financial service account on a schedule.
How courier and COD works
- Customer places an order (Facebook, website or marketplace).
- You confirm the order and details.
- You create a parcel in the courier’s merchant panel (or via integration).
- The courier picks up or you drop off the parcel.
- The courier delivers and collects cash.
- The courier settles the collected amount minus charges to your account.
- Refused or failed deliveries are returned to you, often with a return charge.
Who this guide is for
F-commerce sellers, small online shops, handmade and home-based businesses, and anyone starting e-commerce in Bangladesh. See starting an f-commerce business.
What you need
- A business name and contact details.
- Your NID and possibly trade licence (requirements vary by courier).
- A bank account or mobile financial service account for settlements.
- Packaging materials.
- A simple order tracking sheet or store system.
Step 1: Compare couriers
Consider:
| Factor | Why it matters |
|---|---|
| Coverage | Can they deliver to all districts you serve? |
| Delivery speed | Inside city vs outside city timelines |
| Charges | Delivery fee by zone and weight; COD charge; return charge |
| Settlement speed | How quickly COD reaches you |
| Merchant panel | Ease of booking, tracking and reports |
| Integrations | WooCommerce or store plugins, APIs |
| Support | Responsiveness when issues arise |
Ask other sellers in your category about their experiences. Some sellers use more than one courier – one for inside Dhaka, another for outside.
Step 2: Open a merchant account
Register on the courier’s website or app with your business details. Keep your settlement account in your own or your business’s name. Read the terms carefully: liability for damage, maximum declared value, prohibited items and claim procedures.
Step 3: Set your delivery charges
Decide how you charge customers:
- a flat delivery charge inside and outside the city;
- free delivery above a minimum order value;
- delivery included in the product price.
Make sure your prices cover delivery costs, COD charges, packaging and potential returns. Display delivery charges clearly before checkout.
Step 4: Confirm every order
Refused COD parcels are costly. Reduce them by:
- calling or messaging customers to confirm product, size, price and address;
- asking for a small advance via bKash or Nagad for high-risk orders or higher-value items (clearly explained);
- checking for incomplete addresses or suspicious orders;
- keeping a list of repeat refusers (respecting privacy and law).
Step 5: Package properly
- Use strong outer packaging; bubble wrap or padding for fragile items.
- Seal parcels securely.
- Include an invoice or packing slip.
- Label clearly with the customer’s name, phone, address and order ID.
- Add a thank-you card – small touches build loyalty.
Good photos of packed parcels can help if damage claims arise.
Step 6: Book and hand over parcels
Enter parcel details in the merchant panel: customer details, COD amount, weight and notes. Schedule pickup or drop off at a hub. Keep the tracking ID in your order sheet.
Step 7: Track and communicate
- Share tracking details with customers.
- Monitor parcels stuck in transit.
- Contact the courier quickly about delays.
- Message customers if delivery is delayed.
Step 8: Handle returns and exchanges
Write a clear policy for:
- wrong or damaged items;
- size exchanges;
- customer refusals.
Returned parcels usually come back through the courier. Check them promptly and update inventory.
Step 9: Reconcile settlements
Compare the courier’s settlement reports with your order sheet:
- delivered orders and amounts collected;
- deducted charges;
- returns.
Investigate any mismatch quickly. Good records also help with bookkeeping and tax.
Tools
| Purpose | Tool |
|---|---|
| Orders | Google Sheets, WooCommerce/Shopify orders |
| Courier booking | Courier merchant panels, plugins |
| Customer messaging | Messenger, WhatsApp Business |
| Payments | bKash/Nagad merchant or personal accounts per terms, bank |
| Packaging | Local packaging suppliers |
How this affects your income
Delivery and returns directly affect profit. A 10% refusal rate can wipe out margins on low-priced items. Confirmation, honest product descriptions and good packaging protect your earnings. See product photography for accurate listings that reduce returns.
How to increase earnings
- Reduce refusals with confirmation and accurate descriptions.
- Encourage prepayment with small incentives where appropriate.
- Offer bundles to increase order value relative to delivery cost.
- Negotiate better rates as volume grows.
- Integrate courier booking with your store to save time.
A worked example (hypothetical)
Rakib sells phone accessories through a Facebook page. In his first month, 15% of COD orders were refused, costing him delivery and return charges. He began confirming every order by phone and asking for a small advance on orders from new customers outside Dhaka. He also improved product photos to show exact colours. Refusals dropped, and his profit per order improved.
Common mistakes
- Not confirming orders.
- Underestimating delivery and return costs in pricing.
- Weak packaging leading to damage.
- Not tracking settlements.
- Vague return policies.
- Using one courier without a backup.
Risks and safety
- Fake orders and pranks.
- Damaged or lost parcels: understand claim procedures.
- Settlement delays: track reports carefully.
- Prohibited items: check courier rules and law.
- Customer data: protect names, phones and addresses.
Pros and cons of COD
| Pros | Cons |
|---|---|
| Builds trust with new customers | Refusals and returns cost money |
| Higher conversion for many shoppers | Settlement delays affect cash flow |
| No need for card payment setup | COD charges reduce margin |
| Common customer expectation | More manual confirmation work |
Realistic expectations
COD is essential for many online shops in Bangladesh but requires careful management. Expect some refusals and returns; the goal is to reduce them through confirmation, honest listings and reliable couriers.
Your 30-day setup plan
| Days | Action |
|---|---|
| 1-5 | Compare couriers; ask other sellers |
| 6-8 | Open merchant accounts; read terms |
| 9-12 | Calculate delivery charges and pricing |
| 13-16 | Buy packaging; create labels and slips |
| 17-20 | Write confirmation scripts and return policy |
| 21-30 | Ship orders; track refusals; reconcile settlements weekly |
Key terms explained
- COD: cash on delivery, customer pays when receiving the parcel.
- COD charge: fee the courier deducts for collecting cash.
- Settlement: transfer of collected money to the merchant.
- Return charge: fee for returning undelivered parcels.
- Merchant panel: the courier’s online dashboard for sellers.
Beginner tips
- Confirm every order.
- Price delivery costs into your plan.
- Package fragile items well.
- Reconcile settlements weekly.
Advanced tips
- Use courier APIs or plugins with your store.
- Analyse refusal rates by area and product.
- Offer prepaid discounts.
- Keep two couriers for flexibility.
Frequently asked questions
How much do couriers charge for COD in Bangladesh?
Charges vary by courier, zone and weight, and COD charges are often a small percentage of the collected amount. Check each courier’s current rate card.
How quickly do couriers pay COD money?
Settlement schedules vary by courier and account type. Check the terms and settlement options.
How can I reduce COD refusals?
Confirm orders, describe products accurately, ask for advance payment on higher-risk orders and deliver quickly.
Do I need a trade licence for a courier merchant account?
Requirements vary by courier. Some accept NID for small sellers; others may ask for business documents.
Should I offer free delivery?
Only if your prices and margins can cover it. Free delivery above a minimum order value is a common approach.
Final step
Call two couriers or sellers you know this week, compare rates and write your order confirmation script. More in our e-commerce guides.