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Cash on delivery and unclaimed parcels

| Article: 3 min read | Payment and delivery

Cash on delivery is a payment method where the customer pays for the order when receiving the parcel, and the carrier passes the money to the seller. An unclaimed parcel is when the customer did not pick up the parcel or refused it, and the goods go back to the seller.

In plain words

An order with cash on delivery is still e-commerce: the customer places it on the site and pays later (see e-commerce). For the seller this lowers the trust barrier but adds a risk: the parcel travels there and back, and there is no revenue.

How it works at Nova Poshta (the carrier's terms at the time of checking):

  • Cash on delivery fee: 1% + 10 UAH when paying with NovaPay cards (branch till with automatic debit, apps) and 2% + 20 UAH in other cases (Nova Poshta, cash on delivery).
  • Money reaches a NovaPay card within 30 minutes, and in cash at a branch the day after the recipient receives the parcel (same source). There are limits on the amount and number of operations, and payouts do not go to foreign bank cards or business cards (same source).
  • For business there is a separate cash on delivery agreement: a fee of 0.5% when paid out to a NovaPay account and 1.3% to another account (Nova Poshta, cash on delivery agreement).

What happens to an unclaimed parcel

  • Free storage at the branch is 5 days (not counting the arrival day), and the parcel is held 30 days in total. After that it is considered unclaimed, and the company may dispose of it at its own discretion (Nova Poshta, storage). Until October 2026 the free period was 7 days; Nova Poshta writes that 97% of shipments are collected within the first five days (Nova Poshta news).
  • The "Automatic return" service lets the sender set after how many days the parcel is sent back. If the recipient refuses, the parcel is returned immediately. Connecting it is free, but it is available only to clients with a contract, and the return itself is charged at standard rates (Nova Poshta, auto return).
  • The recipient can inspect the parcel at the branch or with the courier (not at a parcel locker) and not pay for delivery if the goods did not suit them (Nova Poshta, FAQ).

The carrier's pages do not state directly how much a return to the sender costs: check the current rates in your account.

How to calculate the cost of unclaimed parcels (example)

Made-up numbers. A store ships 100 parcels with cash on delivery, and 8 are not collected. Unclaimed rate = 8 / 100 = 8%. If one-way delivery costs 80 UAH and the return costs the same, the store loses about 160 UAH on each unclaimed parcel, plus the time to process it and put the goods back in the warehouse. For 8 parcels that is 1,280 UAH, which has to be built into unit economics and customer acquisition cost.

How to reduce unclaimed parcels

  • Confirm the order by phone or message before shipping.
  • Choose prepaid shipping for expensive goods or for customers who have already failed to collect parcels.
  • Remind the customer that the parcel has arrived in the first days, while free storage applies.
  • Track unclaimed rates by product, region and traffic source: they differ between channels.

What to watch for

  • The carrier changes fees and terms: check the current conditions, not other people's reviews.
  • Calculate the unclaimed rate from the number of parcels shipped, not the number of orders: some orders are cancelled before shipping.
  • Do not confuse unclaimed parcels with product returns: in the first case the customer never received the parcel at all.

FAQ

What is cash on delivery in plain words? Payment for goods on receipt: the customer pays at the branch or to the courier, and the carrier transfers the money to the seller minus a fee.

How much does cash on delivery cost at Nova Poshta? By the carrier's terms: 1% + 10 UAH (NovaPay cards) or 2% + 20 UAH (other methods); for business under a contract, 0.5% or 1.3% depending on the payout account.

How many days is a parcel stored? 5 days free, 30 days in total. After that it is considered unclaimed.

What happens if I don't pick up the parcel? It is returned to the sender (per the shipment settings or auto return) or, after 30 days, the carrier may dispose of it itself.

How do I reduce unclaimed parcels? Confirm the order, require prepayment in risky cases, remind customers to collect, and track unclaimed rates by channel.

Sources

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