Pakistani Ecommerce & COD Financial Glossary
A definitive glossary explaining common financial, logistical, and reconciliation terms used in Pakistani ecommerce retail and courier operations.
Core Definitions & Industry Standards
Clear, practical explanations of the terminology shaping your store's cash flow.
Cash on Delivery (COD)
A retail payment arrangement where the buyer pays for goods in cash directly to the courier delivery agent at the moment the package is handed over at their doorstep.
Return to Origin (RTO)
A failed delivery scenario where the customer rejects the parcel at the doorstep, cannot be reached, or canceled before delivery, resulting in the courier returning the parcel to the merchant's warehouse while charging 2-way shipping penalties.
Settlement Advice (Remittance Sheet)
An itemized accounting statement issued weekly by courier companies detailing all delivered parcels, gross COD collected, freight deductions, fuel adjustments, GST, and the net cash transferred to the merchant's bank account.
Consignment Number (CN / Airway Bill)
A unique alphanumeric tracking identifier assigned to each parcel by the courier upon booking. It serves as the primary tracking and reconciliation identifier linking store dispatch records to courier settlement entries.
Weight Discrepancy
A billing dispute where the courier's billed weight slab exceeds the merchant's actual package dead weight or volumetric dimensions, resulting in unauthorized shipping charge inflations.
Fuel Adjustment Surcharge (FAS)
A variable percentage fee added to base courier freight rates to account for national fuel price fluctuations. Typically ranges from 10% to 25% across Pakistani courier rate cards.
Realized Net Profit
The actual net cash earnings that land in the merchant's bank account after deducting delivered product wholesale costs (COGS), actual courier freight, COD collection fees, RTO return penalties, and advertising spend from delivered sales revenue.
Delivery Ratio (Completion Rate)
The percentage of dispatched orders successfully delivered and paid for by customers out of total orders handed over to couriers. Calculated as (Delivered Orders / Dispatched Orders) × 100.
Unremitted Delivered Order
A package verified as delivered by the customer or marked 'Delivered' on the courier tracking portal that fails to appear on any subsequent courier settlement advice sheet, representing lost merchant cash.
Volumetric Weight (Dimensional Weight)
A calculated weight metric reflecting parcel volume rather than physical heaviness, computed as (Length × Width × Height in cm) / 5000. Couriers bill whichever is greater between physical weight and volumetric weight.
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