Raqeeb Ads

Cash on Delivery Order Cost Calculator

In cash-on-delivery stores, Ads Manager counts an order the moment it is placed, but you only get paid for orders that are delivered and accepted. This cash on delivery calculator works out the real cost after confirmation rate, delivery rate and return costs.

Net profit per delivered order —
Real ad cost per delivered order —
Share of orders delivered —
Return cost per delivered order —

🔒 Calculations run in your browser; no numbers are sent to the server.

How the calculator works

Delivered share = confirmation rate × delivery rate

Real ad cost = cost per order in ads ÷ delivered share

Then return costs are added: every confirmed order that wasn't accepted cost you shipping both ways, and the successful orders have to carry that cost.

Example: 60 cost per order in ads, 75% confirmation, 80% delivery. Only 60% of orders arrive, so the real ad cost per delivered order = 60 ÷ 0.6 = 100, which is 67% higher than Ads Manager shows.

Why ROAS misleads COD stores

If the pixel fires a purchase when the order is placed, every fake or cancelled order counts as a sale. A campaign at ROAS 3 in Ads Manager might really be ROAS 1.8. Judge campaigns with this calculator, and track confirmation rate per campaign, because some audiences order a lot and accept little.

How to raise your delivery rate

  • Call to confirm within an hour of the order; every hour of delay lowers confirmation.
  • Send a WhatsApp message with order details and the expected delivery date.
  • Avoid exaggerated ads that attract impulse orders that never get accepted.
  • Exclude regions with high refusal rates from targeting when possible.

For the full picture read Cash-on-Delivery Store Ads: Confirmation Rates, Returns and the Real Cost per Order.

FAQ

What is a normal COD confirmation rate?
Usually 60% to 85% depending on product, market and how fast you call, with delivery of confirmed orders between 70% and 90%.
Should I count product cost on returned orders?
Not if the product returns to stock intact, but do count shipping both ways. If the product is damaged or lost, add its cost to the return cost.
How can Ads Manager show only delivered orders?
Send the purchase event through the Conversions API on delivery instead of at order time, or create a custom event for confirmed orders and optimize for it.

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