Profile picture of Gaurav Attrii
Gaurav Attrii
I help PMs land 50 lakh+ in Product Roles 🚀
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July 20, 2025
COD is becoming a silent killer for e-commerce brands… #Day77 of #HelpingAspiringPMs100Days The customer loves COD, but it is a nightmare for the companies. Here is why? There is an unpopular rule in industry that before giving the product, always take payment first. → However, in COD, inventory is shipped out immediately. → Cash comes later  Guess what 2 things hit the most? → On average, 30 percent of users don’t take the product for the first time when delivery happens, when it is COD. → The company faces numerous challenges in managing its working capital.  Because of less working capital, the company faces issues like 1. Delay in the payment cycle of vendors. 2. Unable to get a better discount from vendors. 3. In some cases, I have noticed delays in salaries as well. That is one of the reasons why E-commerce companies are continuously raising funds. What should companies do to get more working capital?
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July 20, 2025
Discussion about this post
Profile picture of Deepali salunkhe
Deepali salunkhe
💻 Virtual Assistant | 🌍 Exploring Remote Work Opportunities | 🤖 AI-Savvy | 📅 Helping Businesses Stay Organized & 👀 Visible
3 months ago
It's interesting to know how a customer-friendly payment method can create significant strain on businesses.
Profile picture of Aman Jain
Aman Jain
Product @ Probo | Building 0→1 Products | Driving Engagement, Adoption & Retention | PLDC, Agile Methodologies & Scrum
3 months ago
Many companies have begun imposing a convenience fee for COD to convert such orders into prepaid transactions.