Prepaid incentive — ₹50-100 off for prepaid. Even 10% shift from COD to prepaid saves significantly.
WhatsApp order confirmation — After COD order, send WhatsApp: ‘Confirm your order by replying YES.’ Non-responders within 6 hours → cancel before shipping.
Strategy 3: Pincode-Based Delivery Optimization
Not all tier 2/3 pincodes are equal. Some have good courier coverage, others don’t.
Use Shiprocket’s pincode serviceability API to check: which couriers serve the pincode? What’s the EDD?
For well-served pincodes: offer standard delivery at normal rates
For poorly served pincodes: show longer EDD upfront, consider not offering COD
Some brands restrict COD to specific pincodes — if your RTO data shows certain pincodes have 30%+ RTO, disable COD there
Strategy 4: Hyperlocal Partnerships
For cities where you have high order volume (100+/month from one city), explore local delivery partnerships
Local courier services in tier 2 cities charge ₹30-50 per delivery (vs ₹60-100 from national couriers)
Same-day or next-day delivery becomes possible even in smaller cities
Example: A brand shipping 200 orders/month to Jaipur partnered with a local logistics company, saving ₹8,000/month on shipping alone
The Financial Impact
Optimization
Savings per Order
At 1,000 Tier 2/3 Orders/Month
Regional warehouse
₹15-25
₹15,000-25,000
COD verification (RTO reduction)
₹20-40
₹20,000-40,000
Prepaid shift (10%)
₹5-10
₹5,000-10,000
Pincode optimization
₹5-10
₹5,000-10,000
Total monthly savings
₹45,000-85,000
Need Help With Supply Chain?
At Growww Tech, we optimize supply chain and logistics for D2C brands expanding to tier 2/3 India. Let’s cut your logistics costs.
