How to Start Cash on Delivery (COD) Dropshipping 2024

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Cash on delivery dropshipping also known as COD is a rising alternative to the normal way of selling products online.

To some, this is very impossible with dropshipping because you don’t have full control of the products you’re dropshipping.

Instead, they believe you have to invest in the product upfront and have the shipping handled yourself and get paid when your customers receive the products.

However, that’s not the case with COD dropshipping.

As you already know, dropshipping is a business model whereby you don’t have to have the product or invest in product upfront (inventory).

All you need to do is find a reliable supplier with a good product, market the product and the supplier fulfils your orders to your customers.

The same thing goes for COD!

However, instead of getting your money first from your customer (prepaid), you’ll have to wait till your product is delivered which is usually around 2 – 5 days.

So basically, you’ll need to find a supplier that incorporate cash on delivery in their dropshipping business.

In case you’re wondering how to find dropshipping suppliers that do Cash on Delivery, you don’t have to worry, as I’ll be introducing one before the end of the post.

Cash on Delivery Dropshipping (COD)

Before we go on below is the summary of what we’re going to be discussing in this post and a jump link to give you a head start.

• What is Cash on Delivery
• How Cash on Delivery Works in Dropshipping
• Advantage of COD
• Disadvantage of COD
• Cash on Delivery Dropshipping Platform
• What are it Features
• How to Start COD with Funnel Genie
• Conclusion

What is Cash on Delivery?

Cash on delivery (COD) which is sometimes referred to as “Collect on Delivery”, is a sale of goods online where payment is made on delivery rather than in advance.

If the goods sent out are not paid for, they are automatically returned to the seller or retailer of the product.

The term (COD) originally applied only to cash payment, but over time, other forms of payment have become more common.

So the word “Cash” has over time been replaced with the word “Collect” which includes transaction by credit cards, checks or even debits cards.

COD made e-commerce safer for the buyers of the products because they won’t be paying for products they are yet to see.

However, has it’s safer for the buyers don’t necessarily mean it favor the seller of the products. This is because this type of payment method is vulnerable to product return which is bad for business.

I’ll be discussing both the advantage and disadvantage in a few minutes after I discussed how it can be incorporated into dropshipping.

How Cash On Delivery Works in Dropshipping

Normally, this doesn’t work at all, even if you think about it. The normal way of doing dropshipping includes you looking for a supplier that agrees with you to dropship their products.

This means they are ready to fulfil all the order you sent to them after you must have made your own profit on your own store.

Perhaps, you’re new to dropshipping, and if yes, let me quickly brief you on how this business model works.

What is Dropshipping?

Dropshipping is a retail fulfilment business method where an online store doesn’t keep the products it sells in stocks.

Instead, it only displays pictures of products.

However, whenever it sells a product, it then purchases the product from a third party seller or supplier, who then handle the product packaging and have it shipped directly to the buyer.

So basically, dropshipping means you don’t have to see or handle the product you’re selling directly. All the major works are done by the third-party seller who is also referred to as suppler. learn more…

Cash on Delivery + Dropshipping

Having understood how dropshipping works, let’s now see how we can incorporate cash on delivery into this business model.

This may sound difficult because the majority of the products that are drop shipped are sourced from China (AliExpress), while cash on delivery is not even allowed on AliExpress.

The only possible way is finding a trusted local supplier that allows dropshipping and can fulfil the products on your behalf.

And also receive payment on delivery and finally send your profit after the payment is received from your customer.

Your profit here is going to be the difference between the supplier price and your own price. That is, you can decide how much you wish to sell the product on your online store.

Advantage of Cash on Delivery

Let’s go over some the benefits of cash on delivery and how it can increase your store conversion…

#1: Most Preferable for Customers

Cash on delivery is the most preferred methods for buyers because they’ll have to see the products they ordered before making payment.

Not just that, it also protect them from exposing their payment details online while making payments for the products via their credit or debit cards.

So basically, there’ll be an increase in your store conversion when people saw your products or adverts as pay on delivery.

#2: It Encourages Impulse Purchase

An impulse purchase is also one of the advantages of cash on delivery. Many customers buying your products don’t have the intention of buying it earlier.

However, when they came across your products adverts and they saw payment on delivery, they’ll become more eager to buy.

The fact that they don’t have to pay for the product immediately triggers their buying impulse which helps increase your store conversion.

#3: It Increases Customer’s Trust in the Seller

Another benefit of payment on delivery is the fact that the customer tends to trust you more compared to others doing prepaid.

They believe it’s safer to buy on your store since they’ll see the products before they make payment. Instead of making payment under the probability of seeing the product or the products been a genuine one.

These and more are what encourage customers to go for cash on delivery and also help boost your store conversion.

#4: It Discourages Selling of Counterfeit Products

You won’t be tempted to sell counterfeit or inferior products as a seller because you know the product will be rejected by the buyer.

This favours both the sellers and the buyers automatically because the issue of product returns is out of the equation and so also is low-quality products.

Both the buyer and seller will end up enjoying the transaction because of the value gained.

#5: High Return on Investment (ROI)

It also allows you to tap into some product market that the cost per conversion or purchase is way low compared to the competitive markets.

With this, you can be making up to 1000% profit from a single product sale since the product cost is cheaper and so also the cost per conversion.

This means you can pay less with Facebook advertising and enjoy a wider profit margin on all successfully sold products.

#6: Faster Delivery Method

All products sold on Cash on Delivery are way faster, while shipping compared to the typical prepaid payment method. This is because you will be dealing with premium and exclusive courier service.

Basically, within 2 – 5days, your products must have been delivered and payments are sent within a week depending on your courier service.

#7: No Payment with-hold or Payment Method

Payment methods has always been an issue, most especially when Stripe is not available for merchants in the whole world.

However, with cash on delivery, you don’t have to bother yourself anymore. You don’t have to worry about transaction fee, chargeback or even placing your payment on hold.

Immediately your payments are received from your customers, everything is processed and payout with a week.

Disadvantage of Cash on Delivery

Just as the cash on delivery payment methods as its own advantage does the disadvantage too.

However, the major disadvantage here is that some of the products might be rejected by the customers, which is bad for business.

Customers don’t usually plan for payment or may see the product and dislike them. The best way to avoid this is by selling hot or winning products.

Most importantly product that is of better quality!

Cash on Delivery Dropshipping Platform [Funnel Genie]

As promised, Funnel Genie is a “Cash on Delivery” e-commerce software that helps you built a full pledge e-commerce business without having to touch or deliver any products yourself.

It’s a “Done for You” software that allows you to use pre-installed sales funnel to sell e-commerce products using cash-on delivery payment methods.

They practically handle everything about the business, all you need to do is pick a product from their winning product catalogue and promote it.

They handle the following while you focus on the adverts:

• Sales Funnels
• Courier Service
• Products Catalogue
• Ecommerce website
• Payment Payout
• Ads Copy
• Targeting & Demographic
• Product Sales Copy
• Videos Ad Copy for all products
• And much more…

Imagine not having to pay for hosting or setting up your e-commerce store from scratch while everything is done for you already.

All you need to do is create your account, choose your product, install your sales funnel and run a promotion for your product.

Do you know the most interesting part?

You also get paid for customers leads!

This means for every customer that drop their contact but are yet to make a purchase you equally going to get paid for that!

Funnel Genie allows you to sell on hidden markets that are less competitive like the first tier country like US, UK etc.

You can explore countries with a low cost per action like UAE, Singapore, Saudi Arabia and MUCH MORE!

Features of Funnel Genie

• Sell on hidden Markets

With funnel Genie, you can sell where nobody is already selling and enjoy markets of lesser competition compared to markets like the US.

The cost per conversion is extremely low giving you a larger profit margin per sale and ROI of your entire business.

• Product Fulfillment

You don’t have to worry about product fulfilment because funnel genie has its own exclusive courier service that handles product delivery.

Even better is the fact that they deliver products within 2 – 5 days which is way faster compared to the normal dropshipping time.

• Weekly payout

All payment received is processed and wired to your personal bank account on a weekly basis. This way, you won’t have to bother about receiving payment with PayPal or Stripe or having your money withheld.

Did I mention you also get paid for leads collected?

You also get paid for every customer contact acquired and all payment processed already are payout on a weekly basis.

• Ready-to-use Sales Funnels

Funnel genie also comes with a ready-to-use sales funnel that can be used to increase your sales conversion.

You can create upsell and downsell to even make more sales with just a single product at the front end. It also comes with pre-written sales copy for each and every one of the products available on Funnel Genie.

This helps you to save a lot of time because you don’t have to start from scratch. You just need to add one or two words for it to meet your need.

• Monitor App

You can also monitor every one of your sales on the go with the funnel genie mobile app. You can track your sales conversion and every other stats about your business.

How to Start COD with Funnel Genie

Starting your Cash on Delivery business is very simple. You can start with their 7days trial to test-run the platform and see what it offers.

This will help you understand how the platform is been run and help you get used to it.

To get started, you’ll need to create an account or start with the 7days free trial.

After that, there is lots of training of the platform on how to familiarize yourself with the app.

Once you’ve logged in you can choose from their list of winning products and deploy the funnel you want to use to promote the product.

This will only take a few clicks and once it’s done, you can start promotions and make money as your products are been delivered.

Conclusion

Funnel genie offers a better and cheaper alternative to the usual way of doing dropshipping.

You don’t have to search for winning products and reliable supplier because they offer everything needed to be successful at the business.

Irrespective of your country you can start the cash on delivery e-commerce business and get paid every week directly to your bank account.

You don’t have to spend tons of money on Facebook as the case used to be with countries like US, UK Australia etc.

With funnel genie, you only target country with cheaper CPA. This way, you’ll be spending less and making more profit with your adverts on Facebook.

Ready to get started?

Try Out the 7Days Free Trial

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• AliDropship Alternative 
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