So I've been trying to figure out how COD works lately. I did read the Manual Payments guide. But i have some questions that I can't seem to find an answer to by searching on google. So I'm dropshipping from aliexpress. Say I enabled the COD option but then what? I really can't understand how I'm supposed to get paid. The order gets shipped customer gets the package. Pays the delivery guy and then....? I just can't get my head around this pardon me if I'm too stupid to understand how this works. But am I supposed to tell the customer how to pay me? For example, tell the customer to send the money to my address or something? I just don't get it.
Also in the Shopify Manual Payments guide. Something was mentioned about contacting my bank or delivery service to find out exactly what a customer must do to complete the payment. Soo how do I contact e-packet ? Messed up
If someone could enlighten me id be more than grateful.
Thanks for taking the time to read my question!
EDIT: Forgot to mention. I've also seen some posts around talking about customers bypassing the payment. How come? Is that a possibility?
Hi there Angel!
Don here from Shopify. :)
It's actually not generally advisable to use COD for drop shipping due to the risks involved with this type of payment being used for this type of fulfilment.
In order for your goods to be shipped out, they would need to be marked as paid, which given the nature of COD puts you at a massive risk of non-payment after yourself having paid for the goods.
You might want to instead consider selling to a region that more commonly uses card payments than COD if you intend to run a drop shipping store.
We're also available via our support site for support, 24/7. :)
All the best!
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The Young Answer
I have the same problem. I'm doing drop shipping via Aliexpress and so many people are interested in my products but most of them are asking about COD. shopify support told me to add pay manual payment method. But am i get paid later on if i do that? besides I'm doing the dropshipping. How is it possible? most people are afraid to pay online especially when the website is new because of the feeling that they never get the products.
this is a big issue and I'm losing so many sale only because of this.
There's practically no way you can integrate COD with AliExpress because you don't have the full control of the product. The best way is to outsource COD platform that can receive cash on your behalf and process your payments afterwards.
They'll be in charge of inventory and fulfillment of your orders.
So 'Drop Shipping' in simple terms means "provide (goods) by direct delivery from the manufacturer to the retailer or customer." So the manufacturer will ship them for you. Now, if the manufacturer ships using his FedEx account and the end customer chooses COD as the option. In such a case, once the product reaches to the customer, he will make a payment to FedEx. Then FedEx will pay your manufacturer back via electronic transfer. So at the end of the transaction, your manufacturer has the money. It is up to you to collect this amount from the manufacturer.
- If you can trust your manufacturer with amount for all orders, then it is pretty ok to go ahead with this. Otherwise you will be going to spend sleepless nights.
- Divulging your commission to manufacturer may not be the right way to go.