The no-show problem
You took 15 orders for Saturday pickup. You bought ingredients, baked for 6 hours, packaged everything, and set up your pickup spot. Twelve people showed up. Three didn't. Now you have $60 worth of cinnamon rolls sitting on your counter and three DMs that will never get a reply.
If this has happened to you, you're not alone. No-shows are one of the most frustrating parts of selling from home. Deposits solve this.
When deposits make sense
Not every order needs a deposit. Here's when they're worth it:
High-value orders. If someone orders a custom cake for $80, a deposit protects your time and materials. You're committing hours of work to one person's request.
Limited-batch items. If you make 12 loaves of sourdough and take 12 orders, every no-show means someone who wanted bread didn't get it. A deposit ensures people who order actually show up.
Custom or made-to-order work. Decorated cookies, custom cakes, and specialty items that can't easily be resold to someone else. If it's made specifically for one customer, a deposit is reasonable.
If you've had no-show problems before. Past behavior predicts future behavior. If your no-show rate is above 10%, deposits will fix that fast.
When to skip deposits
Low-cost items under $15. The friction of paying a deposit might cost you more orders than the no-shows. A $3 deposit on a $10 cookie box feels annoying.
Regular customers you trust. Your repeat buyers who show up every Saturday don't need the guardrail. Consider making deposits optional or only required for new customers.
Farmer's market or walk-up sales. If people are buying in person, deposits don't apply. This is a preorder tool.
How much to charge
The sweet spot for most home bakers: 25-50% of the order total.
Here's the logic:
- Too low (under 20%): Not enough to prevent flaky behavior. A $2 deposit on a $40 order won't stop a no-show.
- 25-30%: Works well for standard orders. High enough to signal commitment, low enough to not scare anyone off.
- 50%: Good for custom work, large orders, or items with expensive ingredients. The customer has real skin in the game.
- 100% prepayment: Some sellers do this. It works, but it changes the dynamic. You're now running a store, not taking preorders. That can be fine, but know the shift.
A practical rule: if you'd be upset about eating the cost of an order, the deposit should be high enough to cover your ingredients at minimum.
How to communicate deposits
The way you talk about deposits matters as much as charging them. Here's what works:
Frame it as standard practice. "A 50% deposit holds your spot" sounds professional. "I need you to pay upfront because people keep flaking" sounds frustrated (even if it's true).
Put it on the order form. When you set up your order link with OrderPost, include the deposit requirement so customers see it when they order. No surprise messages after the fact.
Explain the refund policy. "Deposits are refundable if you cancel 24+ hours before pickup. No refund for cancellations under 24 hours or no-shows." Clear. Fair. Done.
Be consistent. Don't charge deposits to some customers and not others (unless you have a clear rule like "regulars are exempt"). Inconsistency leads to awkward conversations.
Deposit logistics
Collecting the deposit
Most cottage food sellers collect deposits through:
- Venmo or Zelle right after the order is placed
- Cash App
- PayPal
When a customer submits an order through your OrderPost link, you can follow up with a payment request. Include your Venmo handle or payment link on the order confirmation so customers can pay immediately.
Tracking who paid
Keep it simple. A spreadsheet or notes app with three columns: customer name, order total, deposit paid (yes/no). Mark deposits as they come in. If someone hasn't paid their deposit within a few hours, send one reminder. If they still don't pay, release their order slot.
Handling refunds
Your policy should cover three scenarios:
- Customer cancels with enough notice (24-48 hours). Refund the deposit. You haven't started their order yet.
- Customer cancels last-minute or no-shows. Keep the deposit. You already bought ingredients and blocked time.
- You cancel (ingredient issue, emergency). Always refund. That's on you, not them.
What about full prepayment?
Some sellers skip deposits entirely and require full payment upfront. This is simpler to manage and eliminates no-shows completely. But it changes the customer experience.
Full prepayment works best when:
- You have an established reputation and loyal customers
- You're selling lower-cost items where the payment feels casual
- You want zero admin around deposit tracking
It works less well when:
- You're new and customers don't know you yet
- Your items are expensive and customers want to see before they pay the rest
- You sell at farmer's markets where people expect to pay at pickup
The psychology of deposits
Here's something counterintuitive: deposits can actually increase your orders, not decrease them. When a customer pays a deposit, they've made a commitment. They're more likely to show up, more likely to be excited about their order, and more likely to order again next time.
The sellers who worry most about deposits scaring off customers are usually the ones who haven't tried them yet. The reality: serious buyers don't mind deposits. The people who balk at a deposit are often the same people who would have no-showed anyway.
Setting it up
- Decide your deposit percentage (start with 25-30% if you're unsure)
- Write a one-sentence refund policy
- Add the deposit info to your next order post
- Include your Venmo or payment link in the order confirmation
- Track payments in a simple spreadsheet
Start with your next drop. You can always adjust the percentage up or down based on how it feels. The important thing is protecting your time, ingredients, and the customers who do show up.
After all, the customer who ordered and showed up deserves to know their bread wasn't given away to someone who didn't bother coming. Deposits make your whole operation more reliable for everyone involved.
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