In Morocco, cash on delivery (COD) is the norm. It's so ingrained in habits that an e-merchant who doesn't offer it can say goodbye to 70-80% of potential orders. But behind this apparent convenience hides a fragile business model that endangers online sellers.
The numbers speak
According to data from major delivery players in Morocco, COD rejection rates range between 20 and 35%. In other words, out of 100 packages shipped with cash on delivery, 20 to 35 come back to the seller. The customer isn't home, changed their mind, doesn't have the money, or simply ordered on impulse. The seller, meanwhile, has paid shipping costs both ways, plus packaging and preparation costs.
A model that encourages irresponsibility
COD creates a toxic asymmetry: the seller takes 100% of the financial risk, the buyer takes none. Ordering COD costs the buyer nothing, even if they refuse the package. There's no commitment, no consequence. This encourages impulse orders, multiple orders (to choose in person), and refusals without reason.
Impact on seller cash flow
For a small e-commerce seller, COD is a cash flow trap. They advance inventory, shipping costs, packaging... and only recover the money 7 to 15 days after delivery (delivery company payout delay). With a 30% rejection rate, profitability melts away. Many small sellers end up giving up.
The alternative: securing payment upfront
The real solution isn't to eliminate COD (consumers aren't ready), but to offer an alternative that provides the same guarantee. Escrow does exactly that: the buyer pays in advance, but risks nothing because the money is held. If the product doesn't match, they get a refund. The seller, on their end, is guaranteed to be paid.
It's the best of both worlds: the security of COD for the buyer, the reliability of prepayment for the seller. Escrow won't replace COD overnight, but it finally offers a credible alternative that could transform Moroccan e-commerce.