As a result the ongoing trend in the eCommerce industry that dropshipping is dying, many entrepreneurs and dropshippers are now taking alternative steps this 2020 towards dropshipping and this step is a system called Cash on Delivery or simply put COD.
What is Cash on Delivery (COD)?
Cash on delivery (or COD in short) is simply a method of selling/purchasing of goods online, whereby payments are made on delivery of orders, instead of the normal routine when a customer needs to pay first, and then the goods are shipped in some couple of days.
Cash on Delivery is sometimes called Collect on Delivery. Cash on Delivery as its name implies is seen as a favorable method for purchasing items online as it gives customers greater assurance over the goods they purchase.
HOW DOES IT WORK? (COD)
The name Cash on Delivery does not compulsorily mean that you must have physical cash at hand to complete a delivery, notwithstanding, one can resolve with the merchandise on the available modes of payments. Therefore, transactions by cash, credit card, cheque, etc are possible.
The methodology of the COD system for a specific purchase is quite easy. Organizations or companies implementing the COD system usually have delivery agents who are responsible for collecting bills amount for a particular good from its respective buyer (or the recipient) in the form of cash or agreed mode of payment at the time of delivery.
The cash collected from the recipient or buyer is then deposited at the corresponding office of the concerned eCommerce or Dropshipping Company who made the sale. This method of payment provides satisfaction between the buyer and the seller.
How the seller perceives COD: The seller sees the simplicity in handling cash as it does not require any difficult methods. The profits from sales are redeemed in time, also cases such as the decline in payments are catered for. The only hiccup one could get from COD is when an order amount is inflated or too high.
How the buyer perceives COD: The buyer enjoys the cash on delivery mode of the transaction as a favorable and preferable system. As a result of this, if wrong or damaged products are delivered, the buyer has the tendency of refusing the product, hence, less risk in making a purchase, since payment is done after delivery.
Cash on Delivery mode of eCommerce is very popular in India. It is very common because the Indians scarcely deal in card payments instead they preferred cash.
THE PROCESS FLOW OF THE COD AND IT’S SYSTEM OF OPERATION
The system of operation of COD requires the users to place an order and the concerned business practitioner to execute the order placed by the customer or buyer (having it in mind that payments need to be collected). The payment (either in cash or whatever agreed method) is made to the seller (or supplier) by the buyer of the product after the ordered product is delivered. Have it in mind that the process flow of the COD initialize immediately an order is placed. Most eCommerce companies deliver their products via logistics, else they may hire a separate logistics personnel for delivering their products and also for collecting payments.
Below are a concise Process flow and system of operation of the COD
- An order must be placed stating COD to be the preferred form of delivery
- After placement of the order with the concerned eCommerce company, the ordered item is browsed through and checked from a supplier or manufacturer. Once successfully sourced and available, an invoice with a delivery challan is prepared by the eCommerce company. These documents in most cases are attached to the products for easy retrieval.
- The products and the invoice are handed to a logistics company for delivery or shipping the order to the given location, also collecting payment in cash.
- The delivery personnel is given the authorization to collect cash right after the delivery of the order is made to the customer’s location. Note that cash payments in forms of cards are also accepted depending on the eCommerce company involved.
- The invoice amount is collected and delivery agents deposit it in the office. The logistics company also in turn hands over the cash payments to the supplier or the eCommerce company after payment of charges, and automatically, the money reaches the manufacturer or wholesaler or dealer of the ordered product.
IS COD POSSIBLE WITH DROPSHIPPING?
Most dropshippers always ask this question if COD can be done together with dropshipping and if it is profitable? As we all know that dropshipping is a business system whereby the dropshipper doesn’t have the product at hand, all he does is to have a reliable merchant from where he can order, so the dropshipper doesn’t have the product or pay for any product’s down payments.
Implementing COD with dropshipping (i.e., COD (cash on delivery) Dropshipping) is very very possible, all you need to do is to find a reliable supplier who allows cash on delivery.
In case you are so curious about where to get a reliable supplier who incorporates COD, don’t worry, I will be giving out a trustworthy Cash on Delivery Dropshipping platform which I bet you can trust in and invest your money in.
IMPLEMENTING CASH ON DELIVERY WITH DROPSHIPPING
Literally, the way normal dropshipping works is totally different from COD, now implementing COD with dropshipping too is quite different and involves some vital factors to put in place. As we know that products that are dropshipped are sourced from China (e.g Taboa, Alibaba, AliExpress), but Cash on delivery is not even allowed on AliExpress.
Now, the only feasible way is to find a trusted local supplier or merchant who incorporates (allows) dropshipping and COD, hereby fulling the products on your behalf. So this merchant would also receive payment on delivery and finally would send your profit immediately payment is collect from your customer. So your profit would be the difference between the merchant’s (supplier’s) price and your own fixed priced.
AS PROMISED! THE TRUSTED PLATFORM WHICH INCORPORATES CASH ON DELIVERY FOR DROPSHIPPERS AND GENERALLY E-COMMERCE
Funnel Genie is a CASH ON DELIVERY e-commerce platform that helps you to build a complete eCommerce / dropshipping store for you without having to stress yourself.
How possible and true? Funnel Genie is truly an awesome platform for you to try, it even allows users to try it for 7 days. With Funnel Genie, everything is done for you! The software allows you to use pre-installed sales funnel to sell your desired products with cash on delivery methods applicable.
Funnel Genie practically handles everything for you, they have tons of winning products which could boost your sale and income for you, all you just need to do is to pick a product from their winning product catalog and then promote it.
Funnel Genie handles the following for you so that you can focus on creating the adverts for your products:
- Sales funnel
- Products catalog
- Courier service
- Ecommerce website
- Payment payout
- Ads copy
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- Videos Ad copy for all products and much more!…
Imagine how cool it is when you don’t have to pay for a hosting account to set up your eCommerce store, you just need to allow funnel genie to do everything for you!
The simple thing you need to do is to create an account with Funnel Genie, choose your preferred product, then install your sales funnel and finally run a promotion for your product.
The most interesting part is that you are paid for customer leads!
This means that for every customer who drops their contact but is yet to make a purchase, you are being paid for that!
- Don’t Worry About Fulfillments
Every Funnel Genie member has an Exclusive Courier and Fulfillment Agreement.
So this implies that, Funnel Genie handles the inventory for you, also the couriers for the delivery!
Deliver your product in 5-7 days!
- Get More Cashflow For Your Business With Weekly Payouts
With Funnel Genie you can get paid weekly. Cash flow is key for your online eCommerce business.
- Ready-To-Use COD Funnels
Funnel Genie comes with access to validated winning products that are crushing it in unsaturated markets.
Funnel Genie comes with ready to use assets:
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