Saudi ArabiaOctober 18, 2026 · 3 min read

Refused at the Door: What Cash on Delivery Really Costs Saudi Online Sellers

Courier waiting at a front door with an undelivered parcel

The order came in at night after your Snapchat ad. Three days later the courier calls: the customer is not answering, or opens the door and says they changed their mind. The parcel comes back. You paid for the ad, the packaging and the shipping both ways, and you have nothing to show for it.

Cash on delivery feels like a way to win trust. For many sellers it has become a way to lose money quietly.

Saudi Customers Already Pay Electronically

The Saudi Central Bank (SAMA) reports that electronic payments made up 85% of all retail payments in 2025, up from 79% in 2024, driven by mada across point of sale and e-commerce. Buy now, pay later is regulated too: SAMA has licensed both Tamara and Tabby.

So the habit is there. The reason a buyer still picks cash is usually not that they cannot pay online. It is that they do not trust the seller enough yet, or there is no real checkout to pay on.

What One Refused Order Costs You

Salla's own help center lists the problems cash on delivery causes stores: non-serious orders, a higher return rate, shipping losses and pressure on cash flow. Fill in this worksheet with your own numbers:

Cost of one refused order	Your number (SAR)
Ad spend to get the order (ad budget ÷ orders)
Outbound shipping
Return shipping
Packaging and inserts
Stock held off sale for the round trip
Total lost per refusal

Multiply the total by your refusals last month. Most sellers have never added these lines together.

Stop paying for refused orders. Start my store

How a Real Checkout Cuts Refusals

Make paying online the easy choice. Offer mada, Apple Pay, Tabby and Tamara at checkout, so the buyer commits before you ship.
Reward prepaid orders. Free shipping or a small gift for paying online moves many buyers off cash.
Limit cash on delivery. Salla itself recommends restricting it for high-risk customers. A website lets you set rules by order value, city or customer history.
Show trust before the order. Your verification, a clear return policy, real reviews and real photos reduce the "let me see it first" feeling.
Confirm before you ship. An automatic WhatsApp or SMS confirmation filters out orders placed on impulse.

Know the Rules Your Customer Has

According to the Ministry of Commerce, the E-Commerce Law gives consumers the right to return an unused product within 7 days, with exceptions such as products made to the customer's own specification, and to cancel if delivery is more than 15 days late. The Riyadh Chamber has also said customers may open and check a shipment before giving the delivery code.

Writing these rules clearly on your website builds trust and makes prepaid buyers more comfortable. This is general information, not legal advice; check the current rules for your products.