COD builds trust with Saudi shoppers — and brings fake orders and returns. Here is how to offer it safely and profitably.
Seller guide
Practical guidance for building and operating an e-commerce business in Saudi Arabia.
Updated Aug 20, 2026
All seller guidesCard and wallet payments are growing fast in KSA, but a large share of online shoppers — especially first-time buyers from new stores — still prefer cash on delivery. Stores that do not offer COD routinely lose a meaningful slice of conversions, particularly outside the major cities.
Couriers charge a COD collection fee per order, remittance cycles delay your cash flow, and refusal at the door turns a sale into a double shipping cost. Industry-wide, COD orders see significantly higher return rates than prepaid orders — fake and impulse orders are the main driver.
| Factor | COD orders | Prepaid orders |
|---|---|---|
| Conversion rate | Higher, especially new stores | Lower for unknown brands |
| Return/refusal rate | High | Low |
| Cash flow | Delayed remittance | Immediate |
| Fees | Courier COD fee | Gateway fee only |
Confirm orders by WhatsApp or SMS before dispatch, require small deposits for high-value items, block repeat refusers, and use address verification. Many stores also nudge prepaid with a small discount or free shipping, gradually shifting their mix without losing conversions.
When Tejaraa fulfils your orders, COD is handled by our courier network with consolidated remittance, and refused orders come straight back into your stock for reselling — no lost inventory, and every return is inspected and logged in your dashboard.
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