Case Study: Flipkart minimizes COD failures and returns with Shiprocket

Flipkart limits COD orders above ₹10,000 in Uttar Pradesh with Shiprocket

The eCommerce giant Flipkart faced a significant challenge with its Cash on Delivery (COD) service being exploited by customers, who would place orders for high-value items "just for fun" and then refuse to accept them upon delivery. This abuse resulted in doubled shipping costs and reduced profits for Flipkart and its sellers, making COD an insecure payment option. To address this, they partnered with the shipping and logistics platform Shiprocket.

Shiprocket helped Flipkart implement several strategic measures to minimize COD failures. These solutions included instituting a maximum purchase limit for COD orders in high-risk areas, creating offers and incentives to encourage online payments, restricting COD to only select product categories, and charging a small fee for the service. As a result, Shiprocket's strategies successfully helped Flipkart segregate genuine shoppers from those abusing the system, reducing unnecessary shipping costs and protecting profit margins.

Flipkart