# Cash on delivery in Iraq: reduce refused orders and keep the books straight

> Cash on delivery in Iraq means the shopper pays the courier in cash on arrival, and your delivery company pays you later, as you agreed. A refused order is one of its main risks, and many causes can be handled before shipping. This guide covers the steps, works out what a refused order costs, and shows how to keep your books straight.

Source: https://madar.iq/en/guides/cash-on-delivery-iraq | Language: English (en) | Last updated: 2026-10-05

Author: Madar team

## What is cash on delivery, and how does it work in Iraq step by step?

Cash on delivery means the shopper pays in cash when they receive the order, and it goes through seven steps from placement until the money reaches you.

1. **Order:** The shopper sees the full amount in your store, delivery fee included, and confirms to [pay on delivery](https://madar.iq/en/features/cash-on-delivery.md). If you [sell through chat](https://madar.iq/en/solutions/social-sellers.md), you record the order yourself.
2. **Confirmation:** You check the address, phone and amount with the shopper.
3. **Preparation:** You pack the order and put its printed invoice in the parcel.
4. **Handover:** You give the parcel to your chosen delivery company and set the order to "Out for delivery". With Al-Waseet, Modon Express or Hi Express on Pro you send the order from your dashboard with one tap, and its status follows the shipment.
5. **Delivery:** The courier calls the shopper and brings the parcel to the address.
6. **Payment:** The shopper pays the courier in cash, and you set the order to "Completed" once the company confirms delivery.
7. **Settlement:** The company hands you the cash it collected and settles its fee, as agreed.

The money does not reach you at handover: it passes through the courier and the company first. Agree in writing with your company when it pays you, how its fee is calculated, and what happens to a refused parcel.

## Why do orders get refused or fail to deliver?

An order is refused or fails when the shopper receives something unexpected, or when the courier cannot reach them. These are the known causes, and what you control in each:

| Cause | How it happens | What you control |
| --- | --- | --- |
| Unclear total | The delivery fee or a higher total surprises the shopper at the door. | Show the full total before the order. |
| Wrong address or phone | The courier cannot find the house, or nobody answers the number. | Check both before shipping. |
| Change of mind | An impulse order, a better offer elsewhere, or a family objection. | Confirm the order. |
| Product differs from the photo | Colour, quality or size does not match what they saw. | Honest photos and descriptions. |
| Size problem | The size they ordered does not fit. | A size chart in centimetres. |
| Nobody answers | The shopper is out, or their phone is off. | Confirm first, and ask them to answer the courier. |

## How do you reduce refusals before you ship?

Five steps help reduce refused orders before shipping: a clear total, a confirmation, a checked address and phone, honest expectations, and accurate photos and sizes. No step removes refusals completely, but each one closes a known cause.

1. **Show the full total before the shopper orders.** The shopper cares about the total at the door: product plus delivery. In Madar you set the [delivery fee](https://madar.iq/en/features/delivery.md) for each governorate, even each area, so the shopper sees the full total before confirming; the [guide to pricing delivery in Iraq](https://madar.iq/en/guides/delivery-pricing-iraq.md) explains how. For chat orders, write one line: product, delivery, total.
2. **Confirm the order with the shopper.** Send a short message or call: repeat the order, the address and the total, and ask whether it is correct. A minute now beats a parcel coming back.
3. **Check the address and phone.** The courier finds the house by the nearest landmark and by phone, so ask for a clear landmark and a number the shopper answers. If the address is incomplete, ask before you ship.
4. **Be honest about what to expect.** Tell the shopper to have the cash ready, and give the delivery time your company tells you, not one you hope for.
5. **Keep photos and sizes accurate.** Photograph the product as it is, and add a size chart in centimetres for clothes and shoes. If you sell clothing, see the [clothing stores page](https://madar.iq/en/solutions/clothing.md).

Madar keeps the shopper informed with [WhatsApp messages](https://madar.iq/en/features/whatsapp-notifications.md): an order confirmation, then notices when it goes out for delivery, is delivered, or fails delivery. They are on by default, and you can turn them off for your store in its settings. They are one-way notices and do not replace asking the shopper whether their details are correct.

## What do you do when a delivery fails or the shopper refuses?

Record "Delivery failed" as soon as you learn of it, call the shopper to find out why, then decide: try again, or close the order as "Returned" when the parcel comes back. The nine statuses in [order management](https://madar.iq/en/features/orders.md) mean this for your accounts:

| Status | When to use it, and what comes next |
| --- | --- |
| New | Not yet reviewed. Confirm it with the shopper. |
| Preparing | You are packing it. Print its invoice. |
| Ready | Packed. Hand it to the company. |
| Out for delivery | With the company. Follow up for the result. |
| Completed | Delivered and paid. Match it against the company's statement. |
| Delivery failed | Not received: refused, no answer, or wrong address. Call the shopper and decide. |
| Partially returned | The shopper kept some products and returned the rest. Record the returned items. |
| Returned | The whole parcel came back, after a refusal or a return. Inspect the items before reselling. |
| Cancelled | Closed before it left you. Note the reason. |

If the shopper was away, or you corrected a wrong address, arrange a new time and set the order back to "Out for delivery" when you hand it over again. If the shopper does not want the order, do not repeat the attempt: record "Returned" when the parcel comes back. With WhatsApp messages on, the shopper receives a delivery-failed notice, so call them yourself. Note the reason they give, so you can see which cause repeats. Keep one rule: a parcel that comes back is "Returned", an order closed before it left you is "Cancelled". Your counts then stay comparable month to month.

## What does a refused order really cost you?

A refused order costs you the delivery charge and the packaging, and the company may add a return charge, while you collect nothing. This **worked example** uses made-up figures, not any delivery company's price: a product sold for IQD 25,000 that costs you IQD 18,000, a delivery fee of IQD 5,000 paid by the shopper, a company charging you IQD 5,000 each way, and IQD 1,000 of packaging.

| Item | Completed order | Refused order |
| --- | --- | --- |
| Paid by the shopper | IQD 30,000 | IQD 0 |
| Trip out | IQD 5,000 | IQD 5,000 |
| Trip back | IQD 0 | IQD 5,000 |
| Packaging | IQD 1,000 | IQD 1,000 |
| Product cost to you | IQD 18,000 | IQD 0, because it came back intact |
| Result | Profit of IQD 6,000 | Loss of IQD 11,000 |

Completed order: 30,000 minus 5,000 minus 1,000 minus 18,000 equals IQD 6,000 profit. Refused order: 5,000 plus 5,000 plus 1,000 equals IQD 11,000 loss. You need two completed orders, earning IQD 12,000, to make up for one refused order.

Your figures will differ: use your company's fees, and ask whether it charges for the return trip. The example leaves out your time and any damaged return.

## How do you keep your books straight with your delivery company?

Keeping your cash on delivery books straight means reconciling every day or every week, depending on your volume, between what you recorded, your delivery company's statement and what you actually received.

1. **Take the period's orders and the company's statement.** List the orders you handed over in the period, and get the company's statement for the same dates: delivered, refused and pending parcels, with amounts collected.
2. **Match parcel by parcel.** Each "Completed" order should match a delivered parcel with the same amount, and each "Delivery failed" or "Returned" order a parcel that was refused or came back.
3. **Chase the differences.** Ask the company about a completed order missing from the statement, a different amount, or an order stuck on "Out for delivery" for a long time.
4. **Record what you received.** Write down each payment's date, amount and deductions, and keep the company's receipt or transfer notice.
5. **Keep refusals and returns visible.** Each month, count the returned orders and the failed deliveries, and group them by reason. That tells you whether your steps work.

Madar keeps each order's status, the customer record with its order history, and an invoice you can print in A4 or thermal size. It does not settle with your delivery company or calculate settlements, so keep that sheet yourself. Give an accountant or order preparer their own [account with specific permissions](https://madar.iq/en/features/team-permissions.md); the activity log records what each member did.

## What policy protects you from disputes?

The policy that protects you is short, written and published before the shopper orders. It answers three questions: when you accept returns and exchanges, who bears the cost of a failed order, and how many delivery attempts you make. You decide it and publish it; Madar does not impose one.

- **Returns and exchanges:** Say which products you take back, within what window, and in what condition, for example unused and in its packaging. Exclude hygiene items and made-to-order products.
- **Cost of a failed order:** If the mistake is yours, such as a product that differs from its description or a wrongly recorded address, you bear the cost. If the shopper refuses without an acceptable reason, you may ask them to pay the earlier attempt's fee on re-delivery, if you state this before they order.
- **Number of attempts:** Decide how many times you re-deliver before closing the order. One second attempt is a reasonable start.

Publish the policy where the shopper sees it before ordering, repeat it when you confirm, and apply it to everyone alike. The customer record and order history in Madar show who has refused before, so you can call them before you ship.

## Why can't your shoppers pay online yet, and what does it mean for you?

Shoppers in Madar stores cannot pay online today: cash on delivery is the only method, and online payment for shoppers is not available yet, with no date promised. That means three things:

- **Money reaches you late.** It stays with the company until settlement, so do not budget on orders still out for delivery. Pay suppliers from what you have received, and keep a reserve for the waiting days.
- **No deposit protects you.** The shopper loses nothing until they pay at the door, so confirmation and a clear policy matter more.
- **New shoppers feel safe.** They pay with the product in their hands, which reassures someone who has never bought from you.

## What does Madar do, and what does it not do?

Madar organises your order from arrival to closing, but it does not deliver orders and does not collect the money.

**What Madar does:**

- Shows the shopper the full total, delivery fee included, before they confirm.
- Gathers orders from your store, chat and phone in one dashboard, with an alert for each new order.
- Tracks every order through nine statuses, including "Delivery failed", "Returned" and "Partially returned".
- Sends the shopper WhatsApp messages for the four order stages, which you can switch off.
- Lets you print invoices in A4 or thermal size, and keeps customer records with order history and the list of delivery companies you work with.
- Takes no commission on orders and has no hidden fees; the subscription is paid with a Visa or Mastercard card from any bank.

**What Madar does not do:**

- It does not deliver orders: you hand each order to your company, or send it with one tap if you linked your account with Al-Waseet, Modon Express or Hi Express on Pro, and you update the status yourself with any other company.
- It does not collect money from shoppers or settle with your delivery company for you.
- It does not offer shoppers online payment today.
- It does not promise a lower refusal rate, and it does not write your return policy for you.

The next step is simple: create your store and try Madar free for 10 days with every Pro feature except the custom domain, no card needed, then choose a plan on the [pricing page](https://madar.iq/en/pricing.md). If you have not opened a store yet, start with the [guide to opening an online store in Iraq](https://madar.iq/en/guides/open-online-store-iraq.md).

## Related pages

- [Cash on delivery](https://madar.iq/en/features/cash-on-delivery.md)
- [Order management](https://madar.iq/en/features/orders.md)
- [WhatsApp notifications](https://madar.iq/en/features/whatsapp-notifications.md)
- [Sweets shop](https://madar.iq/en/solutions/food-sweets.md)
- [Open an online store](https://madar.iq/en/guides/open-online-store-iraq.md)
- [Delivery pricing](https://madar.iq/en/guides/delivery-pricing-iraq.md)
- [Pricing](https://madar.iq/en/pricing.md)

## Take cash-on-delivery orders in your own store

Create your store and try every feature except the custom domain free for 10 days, no card needed, and follow every order from one dashboard.

[Create your store free](https://app.madar.iq/signup?lang=en)

*This is a text copy of a page on madar.iq for machine reading. The original page is the reference.*