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December 30, 2022
By
Swathi v prabhu

6 easy steps to sell online with cash on delivery

Since the onset of the COVID-19 pandemic, online shopping has become a necessity, not a luxury. Closing off shops, and malls and staying at home has encouraged people to venture into online shopping. The digitalization of shopping is also met with the digitalizing of selling goods online. Online businesses have opened up and are gaining momentum with providing quality goods and services. The number of options available online has increased in offline shopping, we get much more options online than in real life. However, more options with products have also led to more options for payment. As per the sources, cash on delivery is considered the safest and best option. People consider it safe, convenient, and trustworthy. If you’re planning to open your own business, then here are 6 easy steps to sell online with cash on delivery.

 

What is cash on delivery and why is it preferred?

Cash on delivery refers to a type of online payment, wherein the buyer of the product provides payment once the goods are delivered by the seller. Cash on delivery is considered the safest and most trustworthy option as there is no chance of losing money or even online fraud. Therefore, many customers prefer cash on delivery. Now that you know the pro of considering cash-on-delivery for online businesses, let us move ahead and start with the 6 steps to sell online with cash on delivery

6 steps to sell online with cash on delivery  

Following these 6 basic steps will help you sell online with cash on delivery.

Step 1: what should you sell?

One of the most important decisions to take before jumping into your online business is deciding the type of product or service you want to sell. This will form the basis to sell online with cash on delivery.

Some of the products which are most popular on e-commerce websites include the following

  1. Apparel
  2. Technology
  3. FMCG (Fast moving consumer goods)
  4. Food
  5. Home décor
  6. Medicines

 

These are a few basic products or services which can be considered by you for your online business with cash on delivery. However, there are many other options and even niche categories in which you can step. However, choosing the product or service forms the foundation of your business and is the most important.  

Step 2: which platform do you want to sell?

    After selecting the product or service which you want to sell for your online business, the next important step is choosing the right kind of platform to showcase those products or services.

Digital marketplaces Online marketplaces which function as real-life marketplaces have accounted for about 58% of global sales in 2018. To sell online with cash on delivery, marketplaces are a great option to start with.

It is always recommended to register on multiple marketplaces to gain visibility.

Some of the top marketplaces most suitable for sellers are:

  1. Amazon
  2. Indiamart
  3. eBay
  4. Alibaba
  5. Myntra
  6. Snapdeal
  7. Quikr

 

Select the suitable marketplace according to your needs. Register your business. Upload photos and videos of your product and services. Negotiate a profit-sharing ratio with the marketplace and start your business.

Although having a marketplace can be a great first option, building your online store is also recommended if you’re well-versed and capable.

Step 3: How to market the products?

One of the most important steps in selling a product is marketing it. Spreading awareness about a product or service by making customers aware of its existence relates to marketing a product.

In the case of marketplaces, they usually take care of the marketing by themselves. They might even collaborate with a third party to increase the demand for your product or services.

But, if it’s your website, you have to hire an SEO manager who will increase the traffic on your site. Using social media apps like Instagram, Twitter, or even Snapchat and marketing them is also useful. The recent trend is to hire influencers with millions of followers to market your product or services.

Step 4: How to collect orders from customers?

With marketplaces, everything is handled by the company, Amazon, Flipkart, or Myntra handles the order collection.

If you own your website, orders are collected from either the website itself or through Email, Whatsapp, or even a phone call.

For the generation of invoices, you can use good billing software which will provide you with all services. The swipe app meets the criteria and can help you with all such related services.

 

Step 5: How to deliver the goods?

It is always wise to collaborate with a delivery company for delivering the end products to the customers. Some of the top delivery companies that offer top-notch delivery services include

  1. Aramex India Pvt Ltd
  2. Shiprocket
  3. Blue dart express Ltd
  4. FedEx Express TSCS India Pvt ltd
  5. Indian postal services
  6. The professional couriers Pvt ltd

These are one of the few popular delivery sites which can help you get started.

After selecting one most suited to your vision,

  1. Make sure that the company has a Cash on delivery option
  2. Some may do delivery but do not specifically have a Cash on delivery option. Make sure you do not engage with such companies
  3. Make sure the charges are reasonable
  4. Sometimes, when a COD is returned to you due to unavailability or refusal by the customer to accept the product, you will be charged both ways for the delivery. Make sure there are concessions available for the same. 

Step 6: Collection of payment

The final step to selling online with cash of delivery includes the collection of payment.

  1. The delivery company will usually collect the payment from the customer in cash on delivery. They will cut a small part of it as their share for postage and handling charges.
  2. If the customer refuses the payment, you have to pay courier charges both ways and extra COD service charges.

FAQS

1. How does cash on delivery work?

With cash on delivery, you or your delivery driver will need to take cash payment upon delivery of the product or order. Be sure to have change on you to break any bills the customer may have.

2. Is cash on delivery safe?

Cash on delivery is typically deemed safe, but there are always risks involved. The best defense is to make sure you or your delivery driver receives the payment before the product is in the customer’s hands.

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