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RTO & Returns

COD vs Prepaid Profit Calculator

Compare net profitability between Cash on Delivery (COD) and Prepaid orders.

Calculator Inputs

Calculation Results

Live updating metrics

Live Computed
Primary Output Metric
Profit / Margin Impact
Informational Disclaimer: This calculation provides an estimate for informational purposes. Actual marketplace fees, GST liabilities, and courier charges depend on seller tier, category, fulfillment mode, and current platform policies.

How This Calculation Works

Prepaid orders have near 0% RTO rates and lower logistics risk, whereas COD orders incur higher RTO rates and extra collection fees.

Formula
COD Profit = Net Revenue (factoring RTO%) - COD Fee; Prepaid Profit = Net Revenue - Payment Gateway Fee

💡 Realistic Indian E-Commerce Example

A ₹999 item yields ₹210 net profit on COD (at 18% RTO) vs ₹315 net profit on Prepaid (at 2% return rate), proving prepaid orders are 50% more profitable.

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Frequently Asked Questions

Common queries about this calculation methodology

Disabling COD will reduce RTO, but may lower overall conversion rates in India by 50-70%. Offering small prepaid discounts is a balanced strategy.

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Calculators give you estimates before you sell. Upload your actual Amazon, Flipkart, or Meesho settlement & GST tax reports to SellerUstad to calculate true SKU-level net profitability after actual platform deductions, returns, and recoverable taxes.