If you sell clothing in Bangladesh, COD is not a ‘payment option’ — it is the market. Buyers trust cash at the door more than prepay on unknown Facebook pages. Operators who treat COD as an afterthought leak margin on returns, fake orders, and courier reconciliation gaps.
What does COD mean in Bangladesh ecommerce?
Direct answer
COD (Cash on Delivery) is payment collected by the courier when the parcel is delivered — the customer pays in cash (or sometimes MFS at door) instead of prepaying online.
Why is COD still dominant in 2026?
Direct answer
Trust and habit: fashion buyers want to see the panjabi/salwar before paying; COD share for clothing often stays 65–80% even when SSLCommerz and bKash are available.
- Lower perceived scam risk for new brands
- Works without card penetration in many segments
- Couriers (Pathao, Steadfast) built workflows around COD collection
How operators lose money on COD
Direct answer
Margin leaks when returns are not reconciled with courier settlements, duplicate Messenger orders ship twice, or ‘reschedule’ loops burn delivery fees — often 5–12% of gross before ad spend.
