How To Start Cash On Delivery Dropshipping Business

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COD is the acronym for Cash On Delivery, which is a viable dropshipping alternative to the ordinary way of vending products online.

In this post you are going to find out if Shopify supports cash on delivery business model.

How To Start Cash On Delivery Dropshipping Business 6

By now, you’re aware that the dropshipping set up in which you’ll not have to maintain an inventory.

Just locate a dependable supplier with a moving product, market the item, and the supplier fulfills your customers’ order.

With this standard dropshipping model, you do not have complete control of the merchandise you are dropshipping.

But that isn’t the situation with COD dropshipping. You’ll have to invest in the merchandise upfront, handle shipment yourself then when the customer received the product, you get paid usually 2-5 days later.

So, mostly you have to locate suppliers who integrate COD in their dropshipping business model.

You don’t have to worry about finding suppliers that incorporate COD. In this article, we’ll introduce one before signing out.

COD-Cash On Delivery Dropshipping

Before we dive deeper, the following is a summary of what this article set to discuss, thus giving you a heads up.

  • What’s COD.
  • How COD works in dropshipping
  • Merits of COD.
  • Drawbacks of COD.
  • COD dropshipping platform.
  • What are COD elements?
  • How to start Cash On Delivery using Genie Funnel

What’s COD?

COD is Cash On Delivery, at times referred to as Collectg On Delivery, is selling items online in which payment is made on delivery instead of in advance.

In case the product sent out is not paid for, it’s automatically returned to the retailer or seller of the item.

Initially, the term COD solely applied to cash payment; however, over the years, other kinds of payment have become more common.

Accordingly, the word ‘Collect’ over the period has taken the place of the word ‘Cash’ to rope in the transaction by checks, debit cards, and credit cards.

And because the buyers do not have to pay for the products they’ve not set their eyes on, COD is making a significant contribution to make e-commerce safe.

Much as the model has made it safer for buyers, the same cannot be for sellers of the product. The COD sort of payment is susceptible to product return, which spells doom for the business.

The Emergence of COD

Comparable to other e-commerce transaction, this kind of payment for purchases made online is similar save for with COD, buyers only make payment once they get the product.

This way, the customer is more assured, and as for the merchants, sales figures are higher.

Picture this, for instance. You live in Dubai, UAE. You want to shave your beard at home without the barber’s service.

You stumble across an ad online for a remarkable electric razor, and you do not like to use your credit card online.

Hence you choose to pay once you the product. You see the product first before making payment. You receive your order faster and pay in cash.

Later on in this article, we’ll look interrogate the merits and demerits of COD though that’s after we’ve looked into how COD can integrate into dropshipping.

How COD Works In Dropshipping

Ordinarily, it won’t work at all, looking at it. The usual way of doing dropshipping entails finding a supplier that you work with to drop ship their products.

It means the suppliers are ready and willing to fulfill all the orders you send after you’ve earned your profit margin.

Oops! I’m moving too fast; maybe you are a newbie to dropshipping, and if so, quickly, let’s go through how this business setup operates.

What’s Dropshipping?

Briefly, dropshipping is a retail fulfillment business model in which the online store does not stock merchandise it vends.

cod demerits

Instead, in the place of an inventory, you showcase the photos of the product.

Whenever you sell a product, you then place an order of the same from a supplier or a third-party seller, who’ll subsequently handle the product shipment and packaging.

In other words, the implications of dropshipping are that you’ll not directly handle or see the product.

The bulk of the work vests on the shoulders of the suppliers of the third-party sellers


Assuming that you’ve grasped how dropshipping works, now let’s discuss ways of integrating COD into the dropshipping business model.

Incorporating COD into dropshipping seems challenging to pull off given that tons of products dropshipped get sourced from China-AliExpress, whereas AliExpress doen[t allow COD on its platform.

To make COD plus dropshipping functional, you’ll have to get a reliable local supplier who sanctions dropshipping and can readily fulfill the order on your behalf.

cod merits

Also, the supplier should agree to receive payment after making the delivery and remit your proceeds upon getting cash from your customers.

Your income is the difference between your store price and the supplier’s price. It means you have the leeway of setting your online store’s prices.

Merits of COD

In this section, we’re going to walk you through the advantages of Cash On Delivery and ways to increase your store conversion.

(1).The ultimate choice for customers

Given that buyers first have to see the products ordered before paying, cash on delivery is thus the most preferred model for buyers.

Also, customer’s payment details, such as debit or credit cards, are protected as they make when making payment for the products.

Your online store will experience an upsurge in conversion as folks see your items or ads on cash on delivery.

(2).It Animate Impulse buying

Among the benefits of cash on delivery is that it inspires impulse purchase since a lot of your customers buying your merchandise may not have intended to buy in the first place.

But on seeing tour product ads and spot payment on delivery, they get more interested and eager to purchase.

The element that they do not have to pay promptly trigger customer’s buying impulses, subsequently increasing the sales and conversion rates.

(3). It Boosts Client’s Conviction On the Seller

Also, customers are inclined to trust more sellers who offer cash on delivery than those with prepaid models.

Instead of committing to payment under the probability of supposed genuine products or seeing the item, customers feel safe buying from stores with incorporated COD as they get to see what they order for before paying.

These aspects and more motivate customers to want to go for cash on delivery and hence boosting your store conversion.

(4). It Dissuades Vending Of Fake Products

As a vendor, this setup discourages you from selling counterfeit or inferior goods because you are aware that buyers will reject the products.

And so the issue of low-quality and return product out of the equation, buyers and sellers automatically stand to reap.

Again, because of the value gained, both the seller and the buyer relish the experience of the transaction.

(5). Return On Investment-ROI

The model permits you to mine from some products markets in which the purchase or the cost per conversion is low in comparison to competitive markets.

And so this leads you the opportunity to make a considerable profit from a single product sale given the cost per conversion and product cost as well are both low.

It means you pay less for Facebook ads; you also enjoy big profit margins on every single successful sale of a product.

(6). Delivery Is Faster

Compared to the products sold on the usual prepaid payment, all items sold on COD are way speedier.

The reason behind fast delivery ties to the fact that suppliers who incorporate COD go for exclusive and premium courier services.

Ideally, in 2-5 days, your merchandise gets delivered and payments remitted inside a week subject to the courier service of choice.

(7).No Payment Method or Payment Withhold

Pay has often proved to be a pain in the neck, more so in the absence of Stripe, merchants have issues globally.

But with COD, you’ll not have to trouble yourself. You won’t have to concern over placing your payment on hold, worry about chargeback, or even transaction fee.

Immediately your customer makes the payment, the processing gets undertaken right away and payout inside a week.

Drawbacks of COD

For every action, there’s a reaction equally, with COD payment merits in existence are its demerits.

Though the main drawback in this regard is that customers can reject the product, and that’s bad for business.

Usually, customers rarely make plans for pay, and at times they can see and dislike the product on the spot.

The best way around it is to vend fast-moving or winning products.

But even of greater importance, it to source high-quality products.

COD Funnel with Funnel Genie

As fresh as a new banknote, Funnel Genie is COD software that allows you to create a fully-fledged e-commerce store without having to handle or deliver any product yourself physically.

Cash on delivery dropshipping
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It’s akin to a ‘Done for You’ software that lets you make use of the pre-installed sales funnels to sell online products using COD payment mode.

Mostly, Funnel Genie will see to all aspects of the business, and all you’ve got to do is to choose a product from a pool of winning product catalog then promote it.

Funnel Genie manage the following as you concentrate on the ads:

  • Courier Services
  • Sales Funnels
  • Ads Copy
  • Product Catalog
  • Payment Payout
  • Ecommerce Website                   
  • Targeting and Demographics
  • Video Ads Copy for all items
  • Product Sale Copy

Just picture this, not parting with a dime for setting up your online store from scratch or not paying for hosting as everything is done for you already, imagine that!

In essence, all you’ve got to is to create your account, pick a product, install the sales funnels, and do the advertising for your product.

And the most interesting bit is that you get paid for customer leads. Isn’t that amazing!

In other words, for every single customer that leaves their contact, albeit they are yet to buy, you equally get compensated for that.

With Funnel Genie, you get to vend in less competitive hidden markets such as the UK, the US, et cetera.

Also, you discover and delve into countries with a low cost per action such as Singapore, UAE, and Saudi Arabia.

Elements of Funnel Genie

·        Vending On Hidden Markets

This software affords you to sell in markets in which no one is already selling, this you experience less throat-cutting competition.

An extremely low-cost per conversion extends you a wide profit margin for every sale and, eventually, a substantial ROI for the whole business. 

·        Item Fulfillment

You won’t have to concern yourself with product fulfillment since Funnel Genie has exclusive courier services that managed the delivery.

The efficient courier services inside 2-5 days will have delivered products, juxtaposed with the standard dropshipping shipment time; this is way faster. 

·        Weekly Payout

All received payments are processed and remitted to your bank account, and therefore you do not have to trouble yourself with Stripe or PayPal to accept payment or have your dollar withheld.

And for every lead, you get rewarded! You don’t make this stuff up.

Every single customer contact obtained, you get compensated, and all the payment processed and wired to you weekly.

·        Pre-Installed Sales Funnels

Funnel Genie comes ready with pre-installed sales funnels, which you can use to boost sales conversions.

The e-commerce software allows you to create down-sell and upsell, thus raking in more sales with just one product at the front end.

Funnel Genie comes ready with pre-written sales copy for every single product available on the software.

1.      Checking App

With Funnel Genie mobile app, you can carefully observe each of your sales on the move.

The app empowers you to track all the stats from sales conversion to every other data aspect concerning your business.


In certain countries, COD remains the renowned alternative to normal dropshipping for web-based retailers, given that with this model, it’s far straightforward to set up independent businesses in these locales, and there’s no need for buyers to have credit cards.

You’ll figure that in these countries, there are several independent firms preferring cash installment over credit installment. This way, these companies evade the cost associated with credit cards.

Similarly, there are a couple of shops with cash payment limits and offer better pricing for consumers.

The bulk of drop shipping transactions in the Middle East is COD, 60% of online deals in the Middle East, and UAE conducts via COD; thus has prompted the mushrooming of dispatching enterprises that offer COD assistance.

Countries like India.COD transactions in a significant way, serve to boost the web-based trade. COD transactions speak to buyers without elective methods or those without full credit card payment for products.

Starting Cash On Delivery with Funnel Genie

Launching a Cash On Delivery business is pretty straightforward. Funnel Genie has a one-week trial that you should test run.

This way, you get to learn how workings of the platform and familiarize yourself with Funnel Genie.

To begin, you’ll either start with the one-week free trial or create an account.

Then on the platform are plenty of training on how to acquaint yourself with the app.

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As soon as you log in, you can pick from the Funnel Genie’s list of winning products, and then you can employ the funnel you’d wish to use to advertise the products.

It only takes a few clicks, and run ads make money as products get delivered.


If you are looking for an enhanced, reasonably priced alternative to the normal dropshipping, then undoubtedly, COD cuts leveraging on Funnel Genie.

On the COD platform, drop shippers’ believability is immensely expanded, given that pay is only upon product conveyance.

With heaps of focal points for buyers, COD’s orders colossally expand in equal footing with the ever insatiable consumer needs.

You can start COD then directly get paid weekly in your bank account country of origin notwithstanding. You’ll not fork out tons of money on Facebook ads as they were formerly in countries such as the UK, US, Australia, et cetera. 

The funnel genie lends you the leverage to target countries with reasonably priced CPA; this way, you cut down costs; thus, more full profit margins aided with Facebook ads.

Are you ready to start COD? Have you heard of COD, or do you have questions? Reach us up in the comment box below.

funnel genie

I was looking for ways of making a living working online from the comfort of my home,few years in am able not only to work from home but also help others achieve their dreams too. I am a full-time eCommerce expert dropshipping business ,Niche research and Facebook ads Expert.

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