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Primary formula: contribution = successful contribution โˆ’ failed-delivery loss

Educational only: Business decision support, not accounting, tax or legal advice.

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Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral small-business planning using your own assumptions.

What this planner helps you decide

Best for

Sellers measuring failed delivery and collection costs for cash-on-delivery orders.

Outputs

Successful orders, failed-delivery loss, collection fees and net contribution.

Start here

Use attempted orders and observed delivery success from one comparable period.

Use a different tool when: Do not use this to test order contribution after the full fee stack; use Ecommerce Order Profitability Planner for that decision. Use this tool to measure cash-on-delivery success and failed-delivery loss.

Commerce & operations

Cash-on-delivery Profit Impact: successful orders

Successful orders, failed-delivery loss, collection fees and net contribution.

Amounts use the same currency as your inputs. No currency conversion is performed.

Cash-on-delivery Profit Impact

Measure failed delivery and handling cost for cash-on-delivery orders.

Your numbers stay in this browser

Whole dispatched COD orders.

currency units

Collected revenue on success. Enter the amount on one consistent ex-tax market-currency basis.

%

Share successfully delivered and collected.

currency units

COD collection cost per success. Enter the amount on one consistent ex-tax market-currency basis.

currency units

Delivery cost on every dispatch. Enter the amount on one consistent ex-tax market-currency basis.

currency units

Additional cost per failure. Enter the amount on one consistent ex-tax market-currency basis.

currency units

Product cost recovered after failure. Enter the amount on one consistent ex-tax market-currency basis.

currency units

Product cost per dispatched order. Enter the amount on one consistent ex-tax market-currency basis.

Decision result

Each output is bound to its registered ecommerce engine formula.

Preparing export actionsโ€ฆ
Successful Orders
900
Failed Orders
100
Collected Revenue
90,000.00
Failed Delivery Loss
1,900.00
COD contribution
46,700.00
Maximum Failure Rate
74%

Scenario comparison

Each row names the assumption axis changed from the baseline.

ScenarioResultDifference
Current scenario46,700.00Baseline
Lower Delivery success rate43,415.00-3,285.00
Higher Delivery success rate49,985.003,285.00

Save these results, change an input, then compare the updated figures with this baseline.

The baseline is temporary in this tab and is not added to shared scenario links or generated reports.

Calculation details

View calculation detailsView the formulas and inputs used for these results.

Successful Orders

Successful Ordersdispatched orders ร— success rate900 units
Result900

Reports units for the entered planning period using the declared ex-tax cost and revenue basis. The engine retains full precision; presentation rounding does not feed calculation.

Cash-on-delivery Profit Impact Planner formulas โ†’
Inputs used by these formula steps
Successful OrdersDispatched Orders
1,000
Successful OrdersOrder Revenue
100
Successful OrdersDelivery Success Rate
0.9
Successful OrdersCollection Fee Per Successful Order
3
Successful OrdersOutbound Cost Per Dispatched Order
8
Successful OrdersFailed Delivery Cost Per Failed Order
6
Successful OrdersRecoverable Product Cost Per Failed Order
30
Successful OrdersProduct Cost Per Order
35

Failed Orders

Failed Ordersdispatched orders โˆ’ successful orders100 units
Result100

Reports units for the entered planning period using the declared ex-tax cost and revenue basis. The engine retains full precision; presentation rounding does not feed calculation.

Cash-on-delivery Profit Impact Planner formulas โ†’
Inputs used by these formula steps
Failed OrdersDispatched Orders
1,000
Failed OrdersOrder Revenue
100
Failed OrdersDelivery Success Rate
0.9
Failed OrdersCollection Fee Per Successful Order
3
Failed OrdersOutbound Cost Per Dispatched Order
8
Failed OrdersFailed Delivery Cost Per Failed Order
6
Failed OrdersRecoverable Product Cost Per Failed Order
30
Failed OrdersProduct Cost Per Order
35

Collected Revenue

Collected Revenuesuccessful orders ร— revenue90,000.00
Result90,000.00

Reports money for the entered planning period using the declared ex-tax cost and revenue basis. The engine retains full precision; presentation rounding does not feed calculation.

Cash-on-delivery Profit Impact Planner formulas โ†’
Inputs used by these formula steps
Collected RevenueDispatched Orders
1,000
Collected RevenueOrder Revenue
100
Collected RevenueDelivery Success Rate
0.9
Collected RevenueCollection Fee Per Successful Order
3
Collected RevenueOutbound Cost Per Dispatched Order
8
Collected RevenueFailed Delivery Cost Per Failed Order
6
Collected RevenueRecoverable Product Cost Per Failed Order
30
Collected RevenueProduct Cost Per Order
35

Failed Delivery Loss

Failed Delivery Lossfailed orders ร— failed-delivery cost stack1,900.00
Result1,900.00

Reports money for the entered planning period using the declared ex-tax cost and revenue basis. The engine retains full precision; presentation rounding does not feed calculation.

Cash-on-delivery Profit Impact Planner formulas โ†’
Inputs used by these formula steps
Failed Delivery LossDispatched Orders
1,000
Failed Delivery LossOrder Revenue
100
Failed Delivery LossDelivery Success Rate
0.9
Failed Delivery LossCollection Fee Per Successful Order
3
Failed Delivery LossOutbound Cost Per Dispatched Order
8
Failed Delivery LossFailed Delivery Cost Per Failed Order
6
Failed Delivery LossRecoverable Product Cost Per Failed Order
30
Failed Delivery LossProduct Cost Per Order
35

COD contribution

Contributionsuccessful contribution โˆ’ failed-delivery loss46,700.00
Result46,700.00

Reports money for the entered planning period using the declared ex-tax cost and revenue basis. The engine retains full precision; presentation rounding does not feed calculation.

Cash-on-delivery Profit Impact Planner formulas โ†’
Inputs used by these formula steps
ContributionDispatched Orders
1,000
ContributionOrder Revenue
100
ContributionDelivery Success Rate
0.9
ContributionCollection Fee Per Successful Order
3
ContributionOutbound Cost Per Dispatched Order
8
ContributionFailed Delivery Cost Per Failed Order
6
ContributionRecoverable Product Cost Per Failed Order
30
ContributionProduct Cost Per Order
35

Maximum Failure Rate

Maximum Failure Ratesuccess contribution / (success contribution + failed loss)0.74 percent
Result74%

Reports percent for the entered planning period using the declared ex-tax cost and revenue basis. The engine retains full precision; presentation rounding does not feed calculation.

Cash-on-delivery Profit Impact Planner formulas โ†’
Inputs used by these formula steps
Maximum Failure RateDispatched Orders
1,000
Maximum Failure RateOrder Revenue
100
Maximum Failure RateDelivery Success Rate
0.9
Maximum Failure RateCollection Fee Per Successful Order
3
Maximum Failure RateOutbound Cost Per Dispatched Order
8
Maximum Failure RateFailed Delivery Cost Per Failed Order
6
Maximum Failure RateRecoverable Product Cost Per Failed Order
30
Maximum Failure RateProduct Cost Per Order
35

Inputs used

Dispatched orders
1,000
Order revenue
100.00
Delivery success rate
90%
Collection fee
3.00
Outbound cost
8.00
Failed-delivery cost
6.00
Recoverable product value
30.00
Product cost
35.00
Open this calculator with preset values

This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.

Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.

Example: https://margin101.com/tools/cash-on-delivery-impact/?sv=1&collectionFeePerSuccessfulOrder=3&deliverySuccessRate=0.9&dispatchedOrders=1000&failedDeliveryCostPerFailedOrder=6&orderRevenue=100&outboundCostPerDispatchedOrder=8&productCostPerOrder=35&recoverableProductCostPerFailedOrder=30

ParameterMeaningUnitAllowed valuesPresenceDefault
collectionFeePerSuccessfulOrderCOD collection cost per success. Enter the amount on one consistent ex-tax market-currency basis.currency units/event, ex tax0 to 100000000Required3
deliverySuccessRateShare successfully delivered and collected.proportion of dispatched cash-on-delivery orders completed0 to 1Required0.9
dispatchedOrdersWhole dispatched COD orders.whole events/planning period0 to 100000000Required1000
failedDeliveryCostPerFailedOrderAdditional cost per failure. Enter the amount on one consistent ex-tax market-currency basis.currency units/event, ex tax0 to 100000000Required6
orderRevenueCollected revenue on success. Enter the amount on one consistent ex-tax market-currency basis.currency units/planning period, ex tax0 to 100000000Required100
outboundCostPerDispatchedOrderDelivery cost on every dispatch. Enter the amount on one consistent ex-tax market-currency basis.currency units/event, ex tax0 to 100000000Required8
productCostPerOrderProduct cost per dispatched order. Enter the amount on one consistent ex-tax market-currency basis.currency units/event, ex tax0 to 100000000Required35
recoverableProductCostPerFailedOrderProduct cost recovered after failure. Enter the amount on one consistent ex-tax market-currency basis.currency units/event, ex tax0 to 100000000Required30

Cash-on-delivery Profit Impact: successful orders

COD contribution shows whether successful collections cover outbound, collection and failed-delivery costs.

Formula summary

Primary formula
contribution = successful contribution โˆ’ failed-delivery loss

Read the full methodology

Data used here

  • The estimate uses your inputs and the general business formula documented in the methodology.

Decision checks

Act on the result

Use COD contribution and the maximum failure rate to decide whether to offer COD, tighten eligibility or change its charge.

Stress-test the decision

Retest delivery success rate as a percentage of dispatched orders and failed-delivery cost in currency units per failed order.

When this estimate can be misleading

  • All provider fees, exchange rates, returns, demand and operating rates are user-entered scenarios.
  • Use one consistent ex-tax currency and planning period across compared inputs.
  • This is educational business decision support, not accounting, tax, legal or financial advice.
  • COD contribution shows whether successful collections cover outbound, collection and failed-delivery costs.

Educational estimate, not advice. See all assumptions & limitations โ†’

Guides to interpret the decision and its assumptions.

  • Failed Delivery Cost

    Measure the incremental cash and capacity cost of failed delivery without assuming a universal failure rate.

    Read guide

Frequently asked questions

How do I measure cash-on-delivery success and failed-delivery loss?

Use COD contribution and the maximum failure rate to decide whether to offer COD, tighten eligibility or change its charge.

Which planning assumptions should I stress-test?

Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.