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How to Increase Prepaid Share of Orders: Complete Guide for Indian D2C Brands

•12 min read•By PenguinCOD Team
PrepaidCODConversionE-commerceIndiaD2CTrust

How to Increase Prepaid Share of Orders: Complete Guide for Indian D2C Brands

Increasing your prepaid order share is one of the most impactful ways to improve profitability for Indian D2C brands. Prepaid orders mean better cash flow, reduced RTO risk, lower operational costs, and improved customer commitment. This guide covers proven strategies to shift customers from COD to prepaid payments.

Why Increase Prepaid Share?

Prepaid orders offer significant advantages over COD:

  • Better Cash Flow: Receive payment immediately, not after 5-7 days
  • Reduced RTO Risk: Prepaid customers are 90%+ less likely to refuse delivery
  • Lower Operational Costs: No COD collection fees, faster order processing
  • Improved Profitability: No shipping cost losses from RTOs
  • Better Customer Data: Cleaner conversion data for marketing optimization
  • Scalability: Easier to scale with predictable cash flow

The Goal: Shift from 20-30% prepaid (typical for new brands) to 60-80% prepaid (optimal for profitability).

The Foundation: Building Trust with Consumers

The most important factor in increasing prepaid share is building trust with consumers. Trust. Trust. Trust. When customers trust your brand, they naturally prefer prepaid payments because they feel confident about:

  • Product quality and authenticity
  • Delivery reliability
  • Return and refund policies
  • Brand legitimacy

High trust means more people will naturally choose prepaid mode without requiring incentives.

How to Build Trust with Consumers

1. Real Content, Real Videos, Unedited Product Showcases

Authenticity is the cornerstone of trust. Show your products exactly as they are:

  • Real Product Videos: Create unedited videos that show products from all angles, in natural lighting, with honest demonstrations
  • Instagram Content: Keep posting authentic content on Instagram—behind-the-scenes, real customer experiences, unboxing videos
  • Product Pages: Use real photos and videos on product pages, not just stock images
  • Transparency: Show product flaws or limitations honestly—customers appreciate honesty and it builds credibility

Why It Works: When customers see real, unedited content, they know exactly what to expect. This confidence makes them comfortable paying upfront.

2. WhatsApp Calling Functionality on Website

Enable direct communication to show products before purchase:

  • Live Product Demos: Allow customers to video call and see products in real-time
  • Instant Support: Provide WhatsApp chat/call buttons on product pages
  • Personal Touch: One-on-one interaction builds personal connection and trust
  • Pre-Purchase Confidence: Customers can verify product details before ordering

Why It Works: Direct communication eliminates doubts and questions, making customers comfortable with prepaid payments.

3. Real Reviews with Real Pictures

Authentic reviews are powerful trust builders:

  • Verified Purchases: Display reviews only from verified customers
  • Real Photos: Encourage customers to upload real photos with their reviews
  • Detailed Feedback: Show both positive and negative reviews (respond to negative ones professionally)
  • Review Moderation: Ensure reviews are genuine, not fake or incentivized

Why It Works: Real reviews with photos from actual customers provide social proof and set accurate expectations, building confidence for prepaid purchases.

4. Trust Badges and Security Indicators

Display trust badges prominently on your website:

  • Payment Security: Show Razorpay Trust Badge, SSL certificates, secure payment icons
  • Business Credentials: Display business registration, GST number, physical address
  • Awards and Certifications: Showcase any industry awards or certifications
  • Guarantees: Display money-back guarantees, warranty information, return policies

Why It Works: Trust badges signal legitimacy and security, making customers feel safe to make prepaid payments.

5. Clear Display of Policies and Timelines

Transparency in policies builds confidence:

  • Delivery Timelines: Clearly show expected delivery dates (e.g., "Delivers in 3-5 business days")
  • Shipping Information: Display time to ship orders (e.g., "Ships within 24 hours")
  • Return Windows: Clearly state return policy and timeframes (e.g., "7-day easy returns")
  • Warranty Information: Display warranty terms and coverage clearly
  • FAQ Section: Address common questions about shipping, returns, and policies

Why It Works: Clear expectations prevent misunderstandings and build confidence for prepaid payments.

6. Premium, Modern Website Design

Invest in good aesthetics and modern design:

  • Modern Shopify Themes: Use premium, professionally designed Shopify themes
  • Premium Look: Ensure your website looks like someone has put effort into building it
  • Mobile Optimization: Ensure perfect mobile experience (most Indian customers shop on mobile)
  • Fast Loading: Optimize for speed—slow websites signal unprofessionalism
  • Consistent Branding: Maintain consistent colors, fonts, and design language

Why It Works: A premium, modern design signals professionalism and investment in the business, which builds trust. Customers are more likely to pay upfront to brands that look established and professional.

Additional Strategies to Increase Prepaid Share

Beyond trust-building, here are proven tactics to convert more customers to prepaid:

1. Offer Discounts on Prepaid Orders

Incentivize prepaid payments with discounts:

  • Percentage Discounts: Offer 5-10% off for prepaid orders
  • Fixed Amount Discounts: Provide ₹50-100 off for prepaid payments
  • Free Shipping: Offer free shipping for prepaid orders (charge for COD)
  • Bundle Discounts: Extra discount on prepaid when buying multiple items

Best Practices:

  • Make the discount visible on product pages and cart
  • Use urgency: "Save ₹100 when you pay now"
  • Show savings clearly: "You save ₹150 with prepaid"
  • Test different discount amounts to find optimal conversion

Example: "Pay now and save 10% (₹200 off)" vs "Pay on delivery (no discount)"

2. Add COD Fees

Charge a convenience fee for COD orders:

  • Small COD Fee: ₹20-50 convenience fee for COD orders
  • Free for Prepaid: No additional charges for prepaid
  • Clear Communication: Display COD fee prominently in cart and checkout
  • Justification: Frame as "delivery and handling fee" for COD

Why It Works: The fee makes prepaid more attractive by comparison. Even a ₹30 COD fee can shift 15-20% of customers to prepaid.

3. Post-Purchase Conversion Tools

Convert customers after they've placed COD orders by offering additional discounts:

Recommended Apps for Indian Market:

1. CODFirm

  • Specifically designed for Indian COD market
  • Post-purchase conversion tool to convert COD to prepaid
  • Automated email and SMS campaigns
  • Customizable conversion offers and payment links
  • Works seamlessly with Indian payment gateways
  • Built for Shopify stores in India

2. ReConvert

  • Post-purchase upsell and conversion tool
  • Customizable thank-you pages with conversion offers
  • Offer discounts to convert COD to prepaid after order placement
  • Works with all payment gateways
  • Easy to set up and customize

3. Klaviyo

  • Email and SMS marketing automation
  • Create flows to convert COD orders post-purchase
  • Segment customers by payment method
  • A/B test conversion offers
  • Works well for Indian market with SMS support

How It Works:

  1. Customer places COD order
  2. Immediately after order confirmation, send offer: "Switch to prepaid and save ₹100"
  3. Provide easy payment link
  4. Convert order to prepaid before shipping

Best Practices:

  • Send conversion offer within 1 hour of order
  • Offer meaningful discount (₹50-100 or 5-10%)
  • Make payment process simple (one-click)
  • Use urgency: "Offer valid for 24 hours"

4. WhatsApp Interventions

Use WhatsApp to personally convert customers:

Tools and Platforms:

1. BiteSpeed

  • AI-native WhatsApp marketing and support CRM
  • Automated WhatsApp campaigns for post-purchase conversion
  • Personal messaging at scale
  • Integration with Shopify
  • High engagement rates with WhatsApp in India

2. Wati

  • WhatsApp Business API solution
  • Automated messaging and campaigns
  • Post-purchase conversion flows
  • Integration with Shopify
  • Popular choice for Indian D2C brands

3. Interakt

  • WhatsApp marketing for Shopify
  • Automated order updates and conversion offers
  • Personal messaging at scale
  • High engagement rates
  • Built specifically for e-commerce

4. Gupshup

  • Enterprise WhatsApp Business API
  • Automated messaging campaigns
  • Post-purchase conversion flows
  • Advanced segmentation
  • Used by many Indian brands

Implementation Strategy:

  1. Automated Messages: Send WhatsApp message immediately after COD order placement
  2. Personal Touch: "Hi [Name], we noticed you chose COD. Pay now and save ₹100!"
  3. Easy Payment Link: Provide direct payment link in WhatsApp
  4. Follow-up: Send reminder if not converted within 24 hours
  5. Support: Offer to answer questions via WhatsApp

Best Practices:

  • Personalize messages with customer name
  • Offer time-limited discounts
  • Make payment process simple
  • Be conversational, not pushy
  • Provide value in every message

5. Calling Interventions

Personal phone calls can have the highest conversion rates:

Options:

1. In-House Call Center Team

  • Best For: Established brands with resources
  • Advantages: Full control, personalized service, brand consistency
  • Considerations: Requires hiring, training, infrastructure
  • Cost: ₹15,000-25,000 per agent per month

2. Automated AI Callers

  • Best For: Brands wanting scale without large teams
  • Advantages: 24/7 availability, consistent messaging, scalable
  • Considerations: Less personal, requires good AI setup
  • Cost: Pay-per-call or subscription models

AI Calling Solutions:

1. Exotel

  • Cloud telephony platform
  • Automated calling solutions
  • Integration with CRM and e-commerce platforms
  • Used by many Indian D2C brands

2. Knowlarity

  • Cloud telephony and AI calling
  • Automated customer engagement
  • Post-purchase conversion calls
  • Integration with Shopify

3. BiteSpeed

  • AI-native WhatsApp marketing and support CRM
  • Automated WhatsApp campaigns for post-purchase conversion
  • Personal messaging at scale
  • Integration with Shopify
  • High engagement rates with WhatsApp in India

Implementation Strategy:

  1. Call Timing: Call within 2-4 hours of COD order placement
  2. Script: "Hi [Name], this is [Brand]. We noticed you chose COD. Would you like to pay now and save ₹100?"
  3. Payment Process: Guide customer through payment over call or send payment link
  4. Follow-up: If not converted, send WhatsApp/email with offer
  5. Tracking: Measure conversion rates and optimize scripts

Best Practices:

  • Call during business hours (10 AM - 8 PM)
  • Train agents on conversion techniques
  • Offer meaningful discounts
  • Be respectful of customer's time
  • Track and optimize conversion rates

Combining Strategies for Maximum Impact

The most effective approach combines multiple strategies:

Tier 1: Foundation (Always Implement)

  • Build trust through real content, reviews, and premium design
  • Offer discounts on prepaid (5-10%)
  • Add COD convenience fees (₹20-50)

Tier 2: Conversion Tools (High ROI)

  • Implement post-purchase conversion tools (ReConvert, Klaviyo)
  • Set up WhatsApp interventions (Wati, Interakt)
  • Automated email/SMS campaigns

Tier 3: Personal Touch (For Scale)

  • Call center team for high-value orders
  • AI calling for broader reach
  • Personalized WhatsApp conversations

The Easy Solution: PenguinCOD

While the strategies above help increase prepaid share, there's a simple solution that addresses the entire RTO problem: PenguinCOD

How PenguinCOD Helps Increase Prepaid Share

1. Add COD Fees Easily

PenguinCOD allows you to add convenience fees to COD orders:

  • Set custom COD fees (₹20-50 or percentage-based)
  • Display fees clearly in cart and checkout
  • Automatically makes prepaid more attractive
  • No technical setup required

2. Offer Discounts on Prepaid

With PenguinCOD, you can:

  • Set automatic discounts for prepaid orders
  • Display savings prominently ("Save ₹100 with prepaid")
  • Create urgency with time-limited offers
  • A/B test different discount amounts

3. Partial Prepaid for COD Orders

Even for customers who choose COD, PenguinCOD enables partial prepaid:

  • Require small deposit (₹25-50) before COD
  • Reduces RTO risk from remaining COD orders
  • Creates commitment even for COD customers
  • Works with any payment gateway

The Complete Flow:

  1. Prepaid Orders: Customers get discount, no COD fee → Higher prepaid share
  2. Partial Prepaid COD: Customers pay small deposit, balance on delivery → Reduced RTOs
  3. Full COD: Only for customers who insist, with convenience fee → Minimal volume

Why PenguinCOD is the Best Solution

  • All-in-One: COD fees, prepaid discounts, and partial prepaid in one app
  • Easy Setup: 5-minute installation, no technical expertise needed
  • Flexible: Works with any payment gateway, any Shopify theme
  • Cost-Effective: Fixed monthly pricing, no transaction fees
  • Self-Serve: No sales team, start immediately

Start your free trial with PenguinCOD and see how easy it is to increase prepaid share while reducing RTOs from remaining COD orders.

Getting Started: Your Action Plan

Phase 1: Foundation (Week 1-2)

  1. Build trust through real content, reviews, and premium design
  2. Install PenguinCOD and set up COD fees + prepaid discounts
  3. Test different discount amounts (5%, 8%, 10%)

Phase 2: Conversion Tools (Week 3-4)

  1. Set up post-purchase conversion tool (CODFirm, ReConvert, or Klaviyo)
  2. Implement WhatsApp interventions (BiteSpeed, Wati, or Interakt)
  3. Create automated email/SMS campaigns

Phase 3: Scale (Month 2+)

  1. Analyze conversion rates and optimize
  2. Consider AI calling for high-volume brands
  3. Build call center team if ROI justifies it
  4. Continuously test and improve

Key Metrics to Track

  • Prepaid Share: Percentage of orders that are prepaid
  • Conversion Rate: COD to prepaid conversion rate
  • Discount Effectiveness: ROI of prepaid discounts
  • Customer Satisfaction: Impact on customer experience
  • Overall Profitability: Net impact on bottom line

Conclusion

Increasing prepaid share requires a multi-faceted approach:

  1. Build Trust: The foundation that makes customers comfortable paying upfront
  2. Offer Incentives: Discounts and COD fees to make prepaid attractive
  3. Use Conversion Tools: Post-purchase tools, WhatsApp, and calling to convert COD orders
  4. Implement Solutions: Tools like PenguinCOD that combine multiple strategies

The goal isn't to eliminate COD completely—it's to shift the balance toward prepaid while managing remaining COD orders effectively through partial prepaid.

Start with trust-building and basic incentives (discounts + COD fees), then layer on conversion tools as you scale. With the right strategy and tools, you can achieve 60-80% prepaid share, dramatically improving your profitability and cash flow.

Ready to increase your prepaid share? Get started with PenguinCOD today and combine COD fees, prepaid discounts, and partial prepaid in one powerful solution.