Why cash-on-delivery orders get refused
Most refused orders do not come from customers acting in bad faith. They come from a quick decision in a chat, a customer who ordered from several stores and took the first parcel to arrive, a price that did not make shipping clear, or a delivery that took so long the customer lost interest.
So the fix starts before the deposit: one final price that includes shipping, an honest delivery date and a confirmation message after the order. The deposit comes after that, for specific cases, not for every order.
When to ask for a deposit
Ask when a refusal is more likely, or more expensive for you. Signals worth watching:
- A first order from a customer you do not know, especially a large one.
- A customer who has refused or returned an order before without a reason.
- An address in a distant governorate where shipping both ways costs more than usual.
- Several orders from the same number in one day, or a missing name or address.
- A made-to-order product, or a special size that is hard to sell to anyone else.
How much to ask
A working rule: the deposit should cover what you actually lose if the order is refused, and no more. That is usually shipping both ways, and sometimes the cost of preparing the product.
An example with illustrative numbers: an order of EGP 1,200, shipping to the customer at EGP 70 and a courier return fee of EGP 50. Your loss on a refusal is about EGP 120, so a deposit between EGP 120 and EGP 240 (10% to 20%) covers it without feeling like a penalty.
Avoid a deposit close to the full price. At that point the customer would rather pay everything up front, or go elsewhere.
How to tell the customer
Egypt’s consumer protection law requires you, before a distance contract, to show the price and all additional charges including shipping, the delivery date and place, and the conditions and period for withdrawing from the purchase (Article 37). So write the deposit policy on the product page and at checkout, not in a later message.
The law also gives a distance buyer the right to withdraw within 14 days of receiving the product; the seller refunds the amount by the same payment method within 7 days of the product’s return, and the consumer bears shipping and return costs unless the contract says otherwise (Article 40). A deposit policy does not cancel that right: it states what is deducted for shipping on a return or refusal, provided it is written and shown before the order.
A suggested wording: “To confirm cash-on-delivery orders above EGP 1,000 we ask for a 15% deposit, deducted from the total. If you refuse the order at the door, we deduct shipping both ways and refund the rest.”
Before the deposit: confirmation
A short confirmation call, or a code sent to the customer’s phone, reveals many hesitant orders. Make confirmation a fixed step in your day: every new order gets a call, the result is recorded, and nothing unconfirmed ships.
Record the reason for every refusal. After a month you will see which governorates, products or channels need a deposit, and which do not.
Deposit or full payment up front?
A deposit is a middle ground: it shows the customer is serious and still lets them see the product before paying the rest. Full payment up front removes refusals at the door, but asks the customer for more trust, especially on a first order.
Try offering both: cash on delivery with a deposit, or full payment by InstaPay or wallet with a small benefit you carry, such as free shipping. A customer who trusts you will pay in full; a hesitant one still finds a path that does not put them off.
What to do with the deposit after the order
Record the deposit on the order itself, not in a side notebook: how much, by which method and when. When the order is delivered, the deposit comes off what the courier collects, so write only the remaining amount on the waybill.
If the order is refused or returned, apply your written policy exactly: deduct the actual shipping cost, refund the rest by the same payment method, and send the customer a note of what was deducted and why. Clarity here protects your reputation more than the small amount.
Common mistakes
What usually spoils a deposit policy:
- Asking every customer, so the store loses people who never needed it.
- Asking after the order in a surprise message, not at checkout.
- An unclear amount, or a percentage that changes from customer to customer with no rule.
- Forgetting to deduct it from the amount to collect, so the customer pays twice.
- A returns policy that contradicts what you promised before the order.
How to do it in nqrah
nqrah gives every cash-on-delivery order a risk score from plain signals your team can see: the customer’s history in your store (delivered, refused and returned orders), orders in the last 24 hours, order value, distance of the governorate and completeness of the address.
You set two thresholds: above the first, a phone code is required; above the second, a deposit at the percentage you choose (20% by default). You can also make every cash-on-delivery order wait for a phone confirmation in the confirmation desk, and block specific numbers.
Sources
- Consumer Protection Law No. 181 of 2018, Articles 17, 37, 38 and 40. English translation published by Andersen in Egypt, read on 30 October 2026. The binding text is the official Arabic.
This guide is general information, not legal advice. Check the official text of the law, or your adviser, before writing your policies.