Cash on Delivery on Shopify: How to Enable It and Cut Refused Orders in the UAE
A guide to cash on delivery (COD) for Shopify stores in the UAE and the Gulf, covering setup, its true cost, WhatsApp order confirmation, COD fees and when to switch it off.
Short answer: you enable cash on delivery on Shopify as a manual payment method under Settings → Payments. It lifts sales for new stores and some categories, but refused deliveries are its biggest cost. Reduce them by confirming every order on WhatsApp before shipping, adding a small COD fee, and turning it off for products or areas with high refusal rates.
Why shoppers ask for cash on delivery
- Trust: the shopper doesn't know your store yet, so they'd rather pay on receipt.
- Habit: some shoppers have used it for years.
- No card, or reluctance to use one online.
Over time, as Apple Pay and instalments spread, many shoppers move to prepaid. But COD still matters for many Gulf stores.
How to enable it on Shopify
- Go to Settings → Payments → Manual payment methods.
- Add Cash on Delivery (COD).
- Write clear instructions in Arabic and English: "Pay in cash or by card on delivery".
- Agree with your courier on how payment is collected and when funds are paid out to you.
The true cost of COD
| Item | Impact |
|---|---|
| Refused deliveries | You pay shipping both ways with no sale |
| Collection fees | The courier charges to collect the money |
| Delayed payouts | Funds reach you days after delivery |
| Damaged goods | A refused item can come back in worse condition |
Track your refusal rate regularly. If it's high, each COD order can be a loss.
Five ways to cut refused deliveries
1. Confirm orders on WhatsApp
Send a message after every COD order: "Your order #… for AED … arrives in two days. Tap to confirm." Don't ship unconfirmed orders, or call the customer first.
2. A small COD fee
For example AED 10–15. It covers part of the cost and nudges shoppers to prepay.
3. Minimum or maximum order values
Allow COD above a minimum, or turn it off for very large orders.
4. Encourage prepayment
Offer a small discount or free shipping for paying by card or Apple Pay.
5. Turn it off based on data
If a product or area has a high refusal rate, disable COD for it.
COD and dropshipping
Dropshipping stores rely heavily on COD, and slow delivery pushes refusal rates up. See dropshipping in the UAE.
Offer the full set of options
COD is one option among several. The strongest stores offer Apple Pay, cards, instalments with Tabby and Tamara, and COD where it makes sense. See Shopify payment gateways in the UAE.
FAQ
Does Shopify support cash on delivery?
Yes, as a manual payment method you enable in payment settings.
Does Shopify charge a fee on cash on delivery?
Manual methods usually don't carry a Shopify transaction fee, but your courier charges a collection fee.
How do I reduce refused deliveries?
Confirm orders on WhatsApp, add a small COD fee, encourage prepayment, and disable COD for high-risk cases.
Should I drop cash on delivery entirely?
Not necessarily. Watch the numbers: if the extra sales cover the cost of refusals, keep it with conditions.