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The short answer
Pay on delivery (POD) costs a Nigerian vendor most when buyers reject orders at the door: you pay the trip out and back and sell nothing. The usual fixes are to collect the delivery fee (or a deposit) before dispatch, confirm every order by call before it leaves, and refuse POD for new buyers, distant areas or custom items. There is no official rejection-rate figure for Nigeria, so measure your own and price it in.
Why POD orders fail
Buyers like POD because they have been burned by vendors who took payment and never delivered. Vendors lose under POD because a buyer who has paid nothing has little reason to follow through. Common reasons orders fail at the door include:
- The buyer changed their mind or ordered from several vendors and took the first to arrive.
- The buyer is not at the address or does not answer the rider's calls.
- The buyer does not have the cash or transfer ready.
- The item looks different from the photos, or the buyer claims it does.
- The order was never serious: a prank, a test or a competitor.
We could not find an official or industry-wide rejection rate for Nigeria. Figures you see quoted online are usually one vendor's experience. Track your own: orders sent, orders accepted, and the reasons for each failure.
What a rejection rate costs: a worked example
Example only. You send 100 POD orders in a month. Each item gives you ₦4,000 margin. Every trip (out or back) costs ₦2,500. One in five orders (20) is rejected.
| Delivery rule | Your delivery cost | Margin from 80 sales | Profit |
|---|---|---|---|
| You pay all delivery ("free delivery") | 120 trips × ₦2,500 = ₦300,000 | ₦320,000 | ₦20,000 |
| Buyer pays delivery only on acceptance | ₦300,000 − ₦200,000 recovered = ₦100,000 | ₦320,000 | ₦220,000 |
| Delivery fee paid before dispatch by all 100 | ₦300,000 − ₦250,000 recovered = ₦50,000 | ₦320,000 | ₦270,000 |
The same rejection rate leaves you with ₦20,000 or ₦270,000 depending only on who pays delivery and when. In practice, collecting the fee first usually also reduces rejections, because a buyer who has paid something is more likely to accept. Check the sums with your own numbers: 100 outbound trips plus 20 returns is 120 trips.
Rules vendors use to limit losses
Delivery fee first
Ask the buyer to pay the delivery fee by transfer before the item leaves. It is small enough that serious buyers agree, and it filters out most people who were not going to buy. State it in your bio and order message so it does not feel like a surprise.
Part payment or deposit
For higher-value items, ask for a deposit, for example a fixed percentage of the price, with the balance on delivery. Say in writing what happens to the deposit if the buyer rejects an item that matches the description, and what happens if the item is faulty. If you refund by card or gateway, allow time: Paystack's documentation says a processed refund may still take up to 10 business days to reach the customer.
Confirm before dispatch
- Call (not just message) the buyer to confirm the order, address and that they will be available.
- Send a photo or short video of the actual item being packed.
- Confirm the total, including delivery, and how they will pay on arrival.
Make paying first easier than paying on delivery
Some vendors offer a small discount or free delivery for payment upfront. A payment link that confirms automatically helps, because buyers worry less about sending money to an unfamiliar account. Paystack lists local payments at 1.5% + ₦100, capped at ₦2,000 (₦100 waived under ₦2,500), so on a ₦12,000 order the fee would be ₦280; check the current pricing page.
When to refuse POD
- New buyers with no order history, especially for expensive items.
- Custom or made-to-order items you cannot resell.
- Deliveries to distant areas or other states, where a return trip costs most.
- Buyers who have rejected an order before.
- Orders that come with pressure to dispatch immediately, or with changes to the delivery address after confirmation.
Keep a short list of buyers who rejected orders without reason and do not offer them POD again. Refusing POD politely and explaining why ("for made-to-order items we take full payment first") is normal practice and most serious buyers accept it.
When the buyer takes the goods and does not pay
If a rider hands over goods and the buyer fails to pay, you have a debt claim. In Lagos, the Small Claims Court handles money claims up to ₦5,000,000 (excluding interest and costs), according to its Practice Directions. You must first serve a letter of demand on Form SCA 1, giving 14 days to pay; you can represent yourself, and the directions aim for judgment within 60 days of filing. Keep the order messages, the rider's confirmation and any payment promise as evidence.
To avoid this situation, never let a rider release goods on a screenshot; see confirming payment before releasing goods and rider cash remittance risk.
Where Pryme fits
A Pryme Business Account gives you bank-transfer checkout free of charge, which you can use for the delivery fee or the full price before dispatch. You can send buyers a verifiable receipt through VerifyDoc.ai (see receipts) so a paid deposit is easy to prove on both sides.
Questions people ask
How do I stop customers rejecting pay on delivery orders?
Collect the delivery fee or a deposit before dispatch, call to confirm every order, send a photo of the actual item, and refuse POD for new buyers on expensive or custom items.
Is it right to collect delivery fee before delivery?
It is a common vendor practice and filters out buyers who are not serious. State the rule clearly before the buyer orders.
What percentage of pay on delivery orders get rejected in Nigeria?
There is no official figure. Measure your own rejection rate and include its cost in your prices.
Can I sue a customer who collected goods and did not pay?
In Lagos, the Small Claims Court handles money claims up to ₦5,000,000. You must first serve a letter of demand (Form SCA 1) giving 14 days to pay.
Sources
- Paystack: Pricing (Nigeria) · accessed Oct 2026
- Paystack Docs: Refunds · accessed Oct 2026
- Lagos MEPB: Small Claims Court Practice Directions (file dated 17 Dec 2025) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.