Calculator: cash-on-delivery deposit
What refused parcels cost you per live and from which deposit they stop costing you. Three scenarios: no deposit, deposit for everyone, deposit for new customers only.
The starting refusal rate is an average quoted by sellers; use your own rate from recent lives. Shipping and return costs come from your courier contract.
Frequently asked questions
Why is the covering deposit the outbound shipping plus the return?
Because that is exactly what you lose when the customer does not collect: you paid the trip out and you pay the trip back, and the item comes home. A deposit kept on refusal covers that amount; above it, the deposit becomes profit from refusals, which customers notice.
Why does “deposit for new customers only” leave a loss?
Because established customers also refuse sometimes. The remaining loss is their refusal rate times the cost of a refusal; usually far smaller than with no deposit, and it does not bother loyal customers.