1. Measure the refusal rate first
You cannot manage what you do not count. Record each refusal against the order, then divide refused orders by finished orders over a period. Do this for orders with an advance and without, so you can see whether changes help.
2. Ask for a small advance
A customer who has already paid something has a reason to open the door. The advance does not have to be large. It only has to make the order a decision rather than a click. See partial COD in WooCommerce.
3. Cap the order value
Offer COD only up to a value you can afford to lose to a refusal, and ask for an advance above it.
4. Hide COD where delivery fails
If your own history shows a pincode or state that keeps coming back, remove COD there or require an advance. See COD rules by pincode.
5. Confirm the order
A code sent to the customer's email before you ship filters out typed in nonsense. See COD confirmation.
6. Score the risk
Combine small signals, such as a first order, a throwaway email address or a pincode that does not match the state, into one number and act on it. See the COD risk score.
Questions
What is a good COD refusal rate?
It depends on your products, prices and areas, so compare your own orders with and without an advance rather than chasing a general figure.
Does an advance reduce refusals?
Compare the refusal rate of orders with an advance against orders without one in your own dashboard to find out for your store.
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