COD Pricing: Anchors, Bundles, and the Minimum Order Value That Makes the Numbers Work
João Victor Ramos · 2026-10-07
Pricing cash on delivery (COD) sales is an important challenge when it comes to making your e-commerce business profitable. Let’s go over the main points that can influence your strategy.
1. strategic quantities
Decide how many units you’ll offer in each sale. The 1-2-3 unit strategy works well:
- 1 unit: Ideal for customers trying the product. The price should be competitive, but high enough to cover costs and ensure a profit.
- 2 units: Here, you can offer a small discount to encourage the purchase, increase perceived value, and raise your average order value.
- 3 units: This is your chance to offer a bundle. The price should be attractive, but remember that you need to maintain your margin. Bundles are generally more appealing and can increase your conversion rate.
2. minimum order value by country
Set a minimum order value that makes sense for each country where you operate. Use the following amounts as a reference:
- Brazil: R$ 99,00
- Portugal: € 25,00
- Spain: € 30,00
- France: € 35,00
These amounts help cover operating and logistics costs, so you don’t end up losing money.
3. build free shipping into the price
Free shipping is a powerful incentive, but it should be built into the product price. When setting your price, factor in the shipping cost and adjust the item price so your margin isn’t affected, even with free shipping. A common practice is to increase the price by up to 10% to cover shipping.
4. upsell on the call
When a customer chooses COD, take the opportunity to offer an upsell during the confirmation call. Train your team to suggest a complementary product or a premium version. If done right, this can increase your average order value by up to 20%.
5. target margin
Set your target margin based on product costs, shipping, and operating fees. Aim for a margin of 30% to 50% on total costs. For example, if a product costs you R$ 40,00, the final price should be between R$ 60,00 and R$ 80,00, depending on your unit strategy and the market.
By applying these pricing strategies, you can optimize your COD sales and increase your e-commerce profitability.
What’s your average margin on COD sales right now?