Mexico and Colombia: COD in LATAM, carriers, and actual delivery rate
Leonardo Barbosa · 2026-10-07
Carriers and coverage
In Mexico, the main carriers for COD (Cash on Delivery) are Estafeta, DHL, and Correos de México. Coverage is broad, especially in major cities like Mexico City, Guadalajara, and Monterrey.
In Colombia, Servientrega and Coordinadora dominate the market, with good coverage in urban areas and some rural regions. It’s important to check service availability by region, since some remote areas may have limitations.
Delivery and return rate
Delivery rates range from 10% to 25% of the order value, depending on the carrier and distance. In urban areas, delivery is usually faster, taking 1 to 3 business days, while in rural areas, it can take up to 7 days.
The return rate is a crucial factor to consider. In Mexico, the return rate can reach 10%, while in Colombia, it can be as high as 15%. This means that for every 100 orders, you can expect 10 to 15 items to be returned, directly impacting your CPA.
Aov and CPA
The average order value in Mexico is around R$ 150 to R$ 300, while in Colombia, it’s between R$ 100 and R$ 250. The average CPA (Cost per Acquisition) can vary, but it’s common to see ranges of R$ 30 to R$ 80. This means that, depending on the order value, profitability can be affected by campaign efficiency and the return rate mentioned above.
Neutral language
When creating ads and product pages, using neutral language is essential. It makes things easier to understand and avoids confusion, especially in a market as diverse as Latin America. Avoiding regional slang and choosing widely accepted terms helps with conversion.
Risks
The main risks of running COD in LATAM include customers refusing to pay on delivery, which can impact cash flow. On top of that, logistics in more remote areas can lead to delays and customer dissatisfaction, resulting in a higher return rate. Finally, the constantly changing regulatory environment can affect operations, so it’s important to stay up to date on local regulations.
Considering all these factors, running COD in Mexico and Colombia can be viable, but it requires a well-planned logistics setup and tight cost control.
What’s your average COD return rate?