Here’s how to Do Cash on Delivery (COD) Dropshipping in India (2025 Guide)

How to Do Cash on Delivery (COD) Dropshipping in India (2025 Guide)
Cash on Delivery (COD) is the key to the door for Indian e-commerce. If you are planning to build a dropshipping business in India without offering COD, your potential is already limited.
Through this journey we will break down so as to how to start a COD based dropshipping store in India step-by-step along with tools, courier partners, and techniques, that will really go the trend in 2025.

🔍 Why COD is Crucial for Indian Dropshipping

Indian economy still prefer cash. Here’s why Cash On Delivery cannot be adjusted:

• Prepaid orders involves trust issues: Most of the Tier 2 and Tier 3 city consumers hesitate to pay online, fearing scams.
• Use of Low credit/debit card : UPI dominates, but many users don’t use cards for online shopping.
• Instant buying behavior: Cash On Delivery motivates purchases without hesitation or second thoughts.

Statistic reveals over 60% of e-commerce orders in India are COD, especially in regional and remote areas.

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🛒 Step-by-Step: How to Set Up a Cash On Delivery Dropshipping Store in India

1. Select Your Niche and Products

Begin by choosing a niche that works well with impulse purchases and low to mid-range ticket sizes (₹299–₹1499).

COD-friendly niches in India:

• Beauty & skincare (e.g., body cream, face serums, lip tints)
• Kitchen tools
• Low cost fashion (e.g., kurti sets, printed shirts)
• Home decor (e.g., LED lights, wall stickers)
• Fitness accessories (e.g., resistance bands, shaker bottles)

Use tools like:

• DropshipIndia App (for curated Indian-winning products)
• Meesho App (great for market pulse)
• Facebook Ad Library to see what others are running

2. Find a Supplier That Supports COD

Dropshippers based in India makes COD easier.

✅ Where to find COD-enabled suppliers:

• GlowRoad
• Shop101
• Udaan
• IndiaMART (vet thoroughly)
• B2B WhatsApp groups or Telegram supplier channels

📌 Additional Tip: Every time place a test order to verify product quality, dispatch time, and packaging.

3. Set Up Your Shopify or WooCommerce Store

Going overboard is not required. Store with a basic fast-leading feature is enough.

Essentials:

• Go with Indian-friendly themes (try “Debutify” or “Craft”)
• Allows COD payment option via Razorpay or Cashfree
• Download COD verification apps (like CODFIRM) to reduce fake orders

✅ Must-have pages:

• COD policy
• Delivery timeline (5–9 days for most cities)
• Return/exchange policy

4. Integrate a Courier Partner That Supports COD

COD collections is not possible without a logistic partner who can handle it.

🚚 Trusted COD-enabled shipping platforms:

• Shiprocket (best for bulk & automation)
• NimbusPost (great customer support)
• Delhivery
• Xpressbees
• Pickrr

These are the platforms which will let you:

• Schedule pickups
• Print shipping labels
• Track shipments
• Collect COD remittances directly into your bank

💸 Note: Many of the remittances are settled in 2–5 business days after delivery.

5. Run Ads with a COD Angle

When your target audience are Indians do highlight COD in your ad creatives and landing pages.

📢 Use hook line like:

• “Order Now, Pay Later”
• “No Online Payment Needed”
• “Pay Only When You Get the Product”

✅ Platforms to run where COD-focused ads are shown:

• Facebook/Instagram Ads
• Google Display Ads
• YouTube Shorts with influencer tie-ups
• Snapchat Ads (still cheap in India)

Aim at Tier 2/3 audiences with Hindi creatives and regional UGC.

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🧠 Must-Have Apps & Tools for COD Dropshipping in India

Purpose	App/Tool
COD Verification	CODFIRM, Thirdwatch
Store Hosting	Shopify India, WooCommerce
Payment Gateway	Razorpay, Cashfree
Supplier Discovery	GlowRoad, Meesho
Logistics	Shiprocket, NimbusPost
Order Tracking	AfterShip, Shipway
Landing Page Builders	Zipify, GemPages

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😓 Common Challenges in COD Dropshipping

1. High RTO (Return to Origin) Rates

📉 Problem: Customers refuse delivery after shipment.

💡 Fixes:

• Use OTP verification before confirming order
• Call high-ticket order customers
• Offer 5% off for prepaid orders

2. Delayed Cash Remittance

Courier companies often take 3–5 days to settle COD payments.

💡 Fixes:

• Keep a rolling inventory budget
• Trace remittance daily
• Avoid shipping to high-RTO pin codes

3. Fake Orders

Many customers test COD just for fun, and they then ghost.

💡 Fixes:

• Use COD verification plugins
• Block repeat pranksters or fake customers using IP & phone number tracking

4. Lack of Delivery to Rural Areas

Not every courier services in remote areas is reliable.

💡 Fixes:

• Use multiple courier partners for delivery
• Allow automated zone-based shipping allocation in your panel

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💸 How to Handle COD Returns & Refunds

Return processing is where many Indian dropshippers tend to waste money.

✅ Return Strategy:

• Enable returns only for damaged or incorrect items
• Don’t offer provide free return pickups on COD
• Use WhatsApp bots to collect return evidence (photos/videos)

💡 Use tools like Return Prime or ClickPost to automate returns and reduce chaos.

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📊 Ideal Pricing Strategy for COD Dropshipping in India

| Product Cost (from supplier) | ₹200 |
| Shipping + RTO Risk Buffer | ₹80 |
| Selling Price | ₹499 |
| Profit | ₹219 (~44%) |

Keep pricing between ₹299–₹999 for maximum conversion in COD. Products above ₹1,499 often get rejected on delivery.

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📦 Where to Sell COD Products in India?

Other then your own website:

• Meesho Reseller Model
• GlowRoad App
• Facebook Marketplace (with cash on delivery tagging)
• Amazon India (self-fulfill with Easy Ship + COD)
• WhatsApp Catalog with COD payment link from Razorpay

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🔚 Conclusion: Is COD Dropshipping Worth It in 2025?

✅ Yes it is, but only if you’re prepared to play the volume and RTO game smartly.

COD dropshipping in India can be an money-principle machine if you combine product research, verified suppliers, tight logistics, and smart ad creatives. It may feel cluttered in the beginning, but once you master the workflow, you’ll enjoy steady cash flow and scale.

📦 Ready to build your COD store? Don’t just watch others do it work on it for yourself. Launch now RTO-proof your funnel and begin converting Indian customers who prefer cash over cards.

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