In May 2026, one of my clients in Saudi saw his COD rejection rate hit 38%. Each return cost him SAR 25 in round-trip shipping, plus the original COD fee. He lost 20,000 SAR in a month.
This isn't just his problem. Early May, several major Saudi carriers collectively raised COD surcharges from SAR 8 to 11 per order. Sellers with rejection rates above 30% face an extra penalty of SAR 6. Honestly, this move is aimed squarely at cross-border sellers with high return rates.
Why the hike? From what I see, Saudi consumers are getting pickier: dented packaging? Reject. One-day delay? Reject. Virtual numbers that can't be reached? Parcel goes back. Carriers can't afford repeated delivery attempts, so they pass the cost to sellers.
My take: don't try to brute-force lower rejection rates. You can't change buyer habits overnight, but you can adjust your tactics. For example, require a 10% online deposit before shipment, with the balance on delivery. Yes, conversion might drop 15%, but rejection can fall from 38% to under 12%.
Another tip: offer an alternative non-COD option locally. Let buyers pay by card at the door (POS machine). Card rejection rates are half of cash because people need to enter a PIN—it's a higher psychological barrier. One client switched in May and saw rejection drop from 35% to 16%.
You could also go fully online payment, but Saudi online penetration is only 45%. Many buyers only trust cash. So what works? Try SMS reminders + WhatsApp confirmation. Send a pickup code 24 hours before delivery. Data shows this alone lifts sign-off rates by 8%.
At the end of the day, Saudi COD fees are up, but the market isn't dead. You'll have to trade off conversion for lower rejection. Can you accept a 10% conversion drop in exchange for halving your returns?