The structured process where cash collected by couriers from COD deliveries is transferred back to the merchant.
COD Remittance is the financial process where cash amounts collected by courier delivery executives from end-consumers upon doorstep delivery are aggregated, audited, and transferred back to the merchant. In the Indian e-commerce market, cash collected from COD orders is initially held by the courier company (such as Delhivery or BlueDart). After a package is marked as successfully delivered, the courier reconciles the transaction, subtracts their pre-arranged COD collection handling fees, and remits the remaining cash balance to the shipping aggregator or fulfillment partner. The partner then routes these funds back to the merchant's bank account. Reconciling this remittance cycle is critical for a D2C clothing brand's cash flow, as a delay of 15 to 30 days can severely lock up working capital, limiting the merchant's ability to fund digital ad spends or buy blank inventory.