What refused parcels cost you each month
Every cash-on-delivery parcel refused at the door costs you twice: you pay to get it back, and the sale you paid to win never turns into cash. Enter your own numbers to see what refusals cost you each month and each year, and what a few more points of acceptance would bring back. The formula is shown under the result.
Your result
Opens my contact form with this summary filled in. Nothing is sent until you submit the form yourself.
The formula
Refused parcels = orders × (1 − acceptance rate)
Cost of refusals per month = refused parcels × cost of a refused parcel
Extra parcels delivered = orders × improvement points ÷ 100
Brought back per month = extra parcels delivered × (cost of a refused parcel + basket × (1 − product cost %))
Per year = per month × 12
With your numbers: 1,000 × (1 − 68%) = 320 refused parcels; 320 × €8 = €2,560 a month. 1,000 × 5 ÷ 100 = 50 extra parcels; 50 × (€8 + €45 × (1 − 30%)) = €1,975 a month.
Three numbers, and what sits behind each one.
The calculator is deliberately simple, so you can check every step by hand.
- Refused parcels are orders you shipped that came back unpaid. Each one used stock, packing and a carrier slot, and brought in no cash.
- Refusals cost you is the direct cost only: getting the parcels back and into stock. It doesn't count the ad spend that won those orders, fees on collected cash, or stock that comes back damaged. Each of those only adds to the bill, so read this number as a lower bound.
- Brought back is what you'd gain if that many more parcels were accepted. Each parcel accepted instead of refused saves the refusal cost and keeps the margin on the product. Outbound shipping and ad spend are paid either way, so they don't change the gain.
For the two cash-on-delivery operators I run the back office for, acceptance moved from 65–70% to 75–80% after automated order confirmation, over ~100,000 orders in 12 months across 10 countries. That's why the default target is +5 points: it's below what I've seen, not a promise.
About the calculator.
What counts as a refused parcel?
Any cash-on-delivery parcel that comes back to you unpaid: the customer refuses it at the door, never collects it, or it can't be delivered because of a wrong address. The cost to you is the same in each case.
What should I include in the cost of a refused parcel?
Return shipping, any COD or return fee your carrier charges on the parcel, and the handling to get it back into stock: unpacking, checking and restocking. Leave out outbound shipping: you pay it whether the parcel is accepted or refused.
Is +5 points of acceptance realistic?
For the cash-on-delivery operators I run the back office for, acceptance moved from 65–70% to 75–80% after automated order confirmation. The default of +5 points is deliberately below that. What you can reach depends on your countries, your products and how you confirm orders today.
Is the data I enter sent anywhere?
No. Everything is calculated in your browser, and nothing is sent or stored. The Send me this estimate button only opens my contact form with a short summary filled in. Nothing reaches me until you submit that form yourself.
Find out why your parcels are refused.
The calculator shows what refusals cost you. An operations audit shows where they come from in your operation, and what to fix first. It's fixed in scope and quoted up front after a short call.
I reply within one business day.