Cash-on-Delivery (COD), also known as Pay on Delivery, remains one of the most powerful growth drivers for e-commerce in emerging markets. While digital wallets and cards are rising globally, millions of shoppers still prefer to pay when the product arrives — especially in markets where trust, banking penetration, or fraud concerns influence buying behavior.
For logistics and fulfillment companies like Selligate, understanding the top COD countries is critical for expansion, warehousing strategy, and last-mile optimization.
Below are the Top 10 E-Commerce COD Countries, ranked by estimated COD dependence, market size, and growth opportunity.
1. Pakistan
Estimated COD Share: 85–95%
Pakistan is arguably the world’s most COD-dependent major e-commerce market. The vast majority of online orders are paid for in cash upon delivery.
Why COD dominates:
Low credit card penetration
High trust concerns with online payments
Strong courier infrastructure for cash handling
Opportunity: Massive addressable market for logistics operators with strong RTO (Return-to-Origin) management systems.
2. Bangladesh
Estimated COD Share: 80–90%
Bangladesh has one of the highest COD usage rates globally. While mobile financial services are growing, COD remains the dominant trust mechanism for online shopping.
Opportunity: High-volume, low-AOV market ideal for scalable warehousing and efficient last-mile networks.
3. Nigeria
Estimated COD Share: 70–80%
Nigeria is Africa’s largest e-commerce opportunity and one of the most COD-driven markets on the continent.
Why COD thrives:
Large unbanked population
Strong cash culture
Consumer trust concerns
With a young, fast-growing digital population, Nigeria remains a strategic COD expansion hub in Africa.
4. Egypt
Estimated COD Share: 70–80%
Egypt is one of the strongest COD markets in the Middle East & North Africa (MENA). COD remains the preferred method for many shoppers despite rising digital adoption.
Opportunity: Rapidly growing e-commerce penetration + high COD reliance = strong logistics demand.
5. Saudi Arabia
Estimated COD Share: 60–75%
Saudi Arabia combines strong purchasing power with significant COD usage.
Why it’s attractive:
High order values
Expanding online retail
Cultural preference for paying on receipt
This makes it one of the most profitable high-value COD markets.
6. Mexico
Estimated COD Share: 40–65%
Mexico is Latin America’s second-largest e-commerce market and still heavily influenced by cash-based payments.
Opportunity: Large population + strong growth + underbanked segments = strong COD potential.
7. Colombia
Estimated COD Share: 50–60%
Colombia maintains strong COD usage, especially outside major cities.
Why it matters:
Growing middle class
Expanding internet penetration
Continued reliance on cash transactions
8. Peru
Estimated COD Share: 50–60%
Peru’s e-commerce market continues to grow steadily, and COD remains a trusted payment method across various demographics.
Opportunity: Balanced AOV + manageable RTO rates compared to ultra-high COD markets.
9. United Arab Emirates
Estimated COD Share: 40–50%
Despite advanced digital infrastructure, many UAE shoppers still prefer COD — especially for certain product categories.
Why it stands out:
High AOV
Strong logistics infrastructure
Regional gateway to GCC markets
10. India
Estimated COD Share: 5–15% (higher in rural regions)
While digital payments have surged in India, COD still plays a major role in Tier-2 and Tier-3 cities.
Opportunity: Enormous e-commerce volume means even a 10% COD share represents millions of monthly orders.
Why COD Still Matters in 2026
Even as fintech grows globally, COD remains critical because it:
Builds trust in first-time online buyers
Expands access to unbanked populations
Increases conversion rates in emerging markets
Reduces cart abandonment for hesitant shoppers
However, COD comes with operational challenges:
Higher Return-to-Origin (RTO) rates (often 15–40%)
Cash handling risks
Increased last-mile complexity
This makes strong logistics, verification systems, and warehousing efficiency essential.
What This Means for E-Commerce Businesses
If you are expanding internationally or scaling within emerging markets:
Prioritize markets with high COD share + growing e-commerce volume
Invest in order confirmation systems to reduce failed deliveries
Optimize warehousing to minimize RTO costs
Strengthen last-mile partnerships
For logistics providers like Selligate, COD-heavy markets represent not just a payment method — but a strategic growth engine.
Final Thoughts
The future of global e-commerce is hybrid — digital wallets will grow, but COD will remain dominant in key regions for years to come.
The top COD countries — including Pakistan, Bangladesh, Nigeria, Egypt, Saudi Arabia, Mexico, Colombia, Peru, UAE, and India — represent some of the largest untapped logistics opportunities worldwide.
For companies that can manage COD efficiently, the upside is enormous.
