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:

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:

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?

Keep reading in COD and Europe

Also on the blog