COD Remittance is the financial settlement process wherein logistics carriers (Delhivery, BlueDart, DTDC) reconcile cash and UPI payments collected from customers upon delivery, deduct applicable freight and COD handling charges, and wire the net proceeds to the merchant’s bank account via NEFT/RTGS. Standard courier remittance cycles operate on T+4 to T+7 business days, requiring apparel brands to maintain working capital reserves to support ongoing manufacturing.
Managing Cash Flow Cycles During Rapid D2C Scaling
Cash flow mismanagement is the primary cause of failure among young Indian clothing brands. When Meta or Google Ads generate 100 COD orders per day, the merchant must pay for the manufactured garments upfront, but cash collected from buyers will not hit their bank account for nearly 10 to 14 days (3 days transit + 7 days courier remittance).
Understanding your COD remittance cycle ensures you forecast advertising spend and inventory replenishment without running out of working capital.
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