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3 COD Logistics Shifts in Middle East 2026

2026-06

Last week, a seller on the Saudi market told me his COD rejection rate jumped from 15% to 35%. It’s not an isolated case. In May 2026, the average COD rejection rate for Middle East parcels I handled rose by 8-10 points. Two reasons: many buyers never intended to purchase; some countries started restricting high-rejection accounts, but sellers haven’t adapted.

My advice: don’t offer “COD only” anymore. In the UAE, for orders under AED 50, switch to prepaid. We tested it — conversion dropped only 12%, but we saved at least AED 7,000 per month on rejection costs. In Saudi, add a “confirm purchase” button and a phone confirmation step. It takes 20 seconds but cuts rejections by 80%.

Platforms are tightening too. Noon and Amazon now limit COD order share to 40% per store. Exceed it, and you get penalized. Honestly, many sellers missed the memo. Start segmenting: fashion items still do COD, electronics go prepaid. Test per category — it works.

Payment delays are another headache. In Egypt, the COD settlement cycle stretched from 7 to 15-20 days. Parts of Saudi are slower too. My tip: use a logistics partner that can advance partial COD payments. It costs 2-3% fee, but your cash flow stays healthy. Also, don’t put all eggs in one carrier — split across 2-3. Freight may be 5% higher, but payments are more reliable.

One last question: what’s your current COD rejection rate? If it’s over 25%, you need to adjust your strategy by June.