Many shoppers in the Gulf prefer to pay when the parcel arrives, especially with a brand they do not know yet. So an argan oil brand faces a practical question: accept cash on delivery (COD) and sell more, or refuse it and lose some orders? The answer depends on what COD really costs you and how tightly you control it.
Why COD still matters
It removes the first barrier: trust. Customers do not want to prepay for a bottle they have never touched. But the cost of that comfort lands on you.
Where the risks sit
- Refused or unclaimed orders: the customer has paid nothing, so refusing costs them nothing. The rate varies by city, product and confirmation process; measure it on your own orders.
- Delayed collection: the courier collects the cash and remits it after a settlement cycle.
- Unsellable returns: an opened oil bottle cannot be resold for hygiene reasons.
- Extra fees: COD handling fees plus return freight on refusals.
Work out the margin impact
Cost of a refused order = outbound and return freight + damaged units + team time. Multiply by your refusal rate and add it to the cost of every COD order. For a wider framework, see unit economics for beauty brands.
| Item | Prepaid | Cash on delivery |
|---|---|---|
| Collection fee | Payment gateway fees | Courier COD fee |
| Refusals | Relatively rare | Higher, round-trip freight on you |
| Cash arrival | Immediate or a few days | After delivery plus settlement |
Practical steps to cut refusals
- Confirm every order before shipping (message or call).
- Set a minimum basket for COD.
- Ask for a deposit on large orders and first-time customers.
- Make the product page clear: size in ml, usage, unit price.
- Log the reason for every refusal.
- Move repeat refusers to prepayment only.
Questions for the courier
- Is the COD fee a percentage or a flat amount?
- How many delivery attempts before return?
- How long until remittance, and is there a per-parcel settlement report?
- Who pays return freight, and what covers loss or breakage?
Get the answers in writing.
Packaging decides the fate of returns
A parcel that comes back has been handled more. Glass and droppers need proper protection, covered in our glass packing guide. A tamper seal helps you tell an intact return from a bottle that cannot be resold.
The link to production
COD slows your cash cycle: you pay the factory first and collect later. Favor smaller batches and plan around confirmed sales. See how we work from sample to production.
FAQ
Should I stop offering COD?
Not necessarily. Many brands keep it for higher baskets or cities where it performs well.
What refusal rate is acceptable?
One that still leaves a positive net margin after fees, freight and breakage. Calculate it for your product and price.
Can I resell returned bottles?
Only if sealed and cleared by your inspection. Opened bottles should not go back on sale.
Planning an argan oil line with batch sizes that fit your cash flow? Request a quote from Assil Ouargane and tell us your volumes and packaging.
