Cash on delivery in the UAE: how to offer it without losing money
Many UAE shoppers still like to pay cash on delivery. See what it really costs your online store, and the simple ways to cut refused and failed orders.
By the Samay.ae teamUpdated 9 min read
Keep cash on delivery if your customers want it, but do not offer it without rules. In the UAE, cash on delivery (COD) still wins orders from shoppers who are not ready to pay online. It also brings refused parcels, slow cash and extra work, and all of that comes out of your margin.
The answer is control, not a ban. Confirm each order before you ship it, limit who can use COD, and give shoppers a small reason to pay online instead. None of this needs a big budget.
Why UAE shoppers still choose cash on delivery
COD means the shopper pays the courier when the parcel arrives. Shoppers choose it for a few common reasons.
- They do not know your store yet. Paying at the door feels safer than typing card details into a website they found yesterday.
- Habit. Some shoppers have always paid this way.
- No card, or no wish to use one online. Not everyone has a card, or wants to use it on a new website.
- They want to see the parcel first. They pay only once the order is in front of them.
Fewer shoppers prefer it than before. A 2024 report by Checkout.com looked at online shopping in the Middle East and North Africa. It found that the share of shoppers who prefer cash on delivery halved over four years, from 41% to 20%. So COD has fallen sharply, but it is still widely offered, and one in five shoppers in that survey still prefers it.
What cash on delivery really costs your store
COD looks free because the shopper pays at the door. It is not free.
- Delivery fees. You pay the courier for every trip, whether or not the shopper pays.
- A fee for collecting cash. Your courier may charge extra for COD orders, so ask about it in every quote.
- Refused parcels. If the shopper refuses the parcel or cannot be reached, you usually pay for the trip out and the trip back, and you make no sale.
- Damaged returns. Items can come back creased or scratched, so you may not be able to sell them as new.
- Waiting for your money. The courier holds the cash until its next payout. Jeebly, for example, says it pays out COD money weekly.
- Staff time. Calling customers, rebooking deliveries and matching courier payments to orders all take time.
- Fake orders. When nothing is paid upfront, some people order with no real plan to buy.
A worked example
This example uses made-up figures, so get real quotes from couriers and track your own refusals. Say you sell a dress for AED 250.
| Example (made-up figures) | Amount |
|---|---|
| Price of the dress | AED 250 |
| What the dress costs you | AED 100 |
| Delivery, one way | AED 20 |
| COD fee | AED 5 |
| Profit on a delivered COD order | AED 125 |
| Cost of a refused parcel (two trips, no sale) | AED 40 |
Now say you send 100 COD orders in a month and 10 are refused. The refusals cost you AED 400, which wipes out the profit on more than three good orders. Cut refusals to 5 and you keep AED 200 more each month, plus the time you would have spent on returns.
How to reduce refused and failed cash on delivery orders
These are common ways to cut refused and failed deliveries. Start with the first three, because they cost little.
- Confirm every COD order before you ship. Send a WhatsApp message with the items, the total and the delivery area, and ship only after the customer replies. Ask for a location pin (a map location shared in WhatsApp) so the courier can find the address. See how to sell on WhatsApp in the UAE for setting up WhatsApp Business.
- Verify the phone number at checkout. A one-time code (OTP), sent by text message or WhatsApp, proves the number is real before the order is placed. Your developer, or an add-on for your platform, can add this step to checkout.
- Add a COD fee or a minimum order. A small fee covers the courier's charge and nudges shoppers to pay online. A minimum order for COD stops very small orders that are not worth the risk. Show any fee clearly before the customer orders.
- Take part of the payment upfront on big orders. For example, ask for a deposit online on orders over AED 1,000, and collect the rest on delivery. Do the same for custom-made items, which you cannot sell to someone else.
- Limit COD by area or order value. If refusals cluster in some areas or above a certain amount, switch COD off there. Your store can be set up to hide COD based on the cart total or the delivery address.
- Block repeat refusers. Tag customers who refused a parcel in your customer list, and do not offer them COD again. A store can be set up to read the tag and hide COD for them automatically.
- Offer card payment on delivery. Some couriers let the customer pay by card at the door. Quiqup, Emirates Post's EMX and Shipa say they accept cash or card on delivery. Compare them in our guide to delivery companies for UAE online stores.
- Reward shoppers who pay online. Free delivery on prepaid orders gives a clear reason to switch. You can also offer Tabby and Tamara instalments, so shoppers pay a small part now instead of the full price.
- Keep the customer informed. Show the expected delivery date at checkout. Then send the tracking link, a reminder the day before and a message on the day. A customer who knows when the parcel is coming is more likely to be home, with the cash ready.
- Make the product page match the parcel. Clear photos, true colours and honest sizes mean fewer surprises at the door. A clear return and exchange policy helps too, because shoppers who know they can exchange have less reason to refuse.
Tip: Track your refusal rate every month: refused parcels divided by COD orders sent. If one fix does not lower it, add the next one.
How to set up cash on delivery on your store
A cash on delivery order is recorded in your store as unpaid. Your courier collects the money at the door and pays it to you later. Whatever your store runs on, the setup comes down to the same steps.
- Choose where COD is available. Decide which emirates or areas get it, and any order limits. Start with areas where your courier delivers reliably.
- Show any COD fee before the order is placed, on your delivery page and at checkout. Add a short note for shoppers, such as "Pay in cash when your order arrives. We will confirm your order on WhatsApp first."
- Check phone numbers. Make the phone number a required field, and verify it with a one-time code if you can.
- Choose a courier that collects cash. Quiqup, Jeebly, Aramex and EMX all say they offer COD. Ask each one about its COD fee, how often it pays you and how it sends the money.
- Place a test order to see what the customer sees, from checkout to the confirmation message.
- Mark orders as paid when the money arrives. When the courier pays you, check the payout against your orders and mark each COD order as paid, so your records match your bank.
On a custom store, your developer can build your COD rules into checkout: the fee, the phone check, and hiding COD for some areas, order values or customers. On a ready-made platform, some of these may need an add-on (an extra you install). Either way, test them well before a busy season. Our guide to custom online stores in the UAE explains what they cost and who needs one.
If we build your store, we set up cash on delivery for you, along with card payments, Apple Pay, Tabby, Tamara and delivery. See what our packages include.
When to stop offering cash on delivery
COD is a tool, not a rule. Think about switching it off, fully or partly, in these cases.
- Refusals stay high even after you confirm orders and set limits.
- Your orders are small, so delivery and COD fees eat most of the profit.
- You sell custom-made or personalised items that you cannot sell to anyone else.
- Most customers already pay online, and the few COD orders cause most of your problems.
You can also take a middle path. Keep COD for repeat customers and small orders, and ask new customers with big orders to pay online or with Tabby or Tamara. If you switch COD off, say so clearly on your delivery page and show the other ways to pay. If you have not set up card payments yet, start with our guide to choosing a payment gateway in the UAE.
Frequently asked questions
Is cash on delivery still popular in the UAE?
Less than it was. A 2024 Checkout.com report looked at shoppers in the Middle East and North Africa. It found that the share who prefer cash on delivery halved over four years, from 41% to 20%. COD has fallen sharply, but it is still widely offered by online stores.
How do I reduce COD returns?
Confirm every COD order by WhatsApp or phone before you ship, and verify phone numbers at checkout. Add a small COD fee or free delivery on prepaid orders, and switch off COD for customers who refused before. Clear product pages and delivery updates also mean fewer surprises at the door.
Can I charge a fee for cash on delivery?
Many stores do, to cover the courier's charge for collecting cash. Show the fee clearly before the customer places the order, so it is never a surprise at the door. On a custom store, your developer can add the fee to checkout. On a ready-made platform, check whether you need an add-on for it.
Can customers pay by card on delivery in the UAE?
Yes, if your courier offers it. Quiqup, Emirates Post's EMX and Shipa say they accept cash or card on delivery. Ask your courier whether every driver carries a card machine, and what card payments on delivery cost you.
How long do couriers take to pay COD money?
It depends on the courier and your contract. Jeebly, for example, says it pays out COD weekly. Ask every courier how often it pays, how it sends the money and what it deducts, then check each payout against your orders.