Actually, Dropshipping is not dead. At Least for some people who are still finding massive success with it. But Dropshipping is becoming competitive every day. More and more people are getting into dropshipping. The number of dropshipping stores in the USA alone has tripled in the last 2 years and that number is only expected to grow. “How to Start Dropshipping” or simply “Dropshipping” is one of the most searched keywords in the USA. This google trend has seen a massive rise from 2017. Dropshipping seems like the new American Dream.
You might’ve already seen it, a lot of people are quitting their dropshipping business because they couldn’t make it work. Not because they are not committed, but because they are trying to sell in a very saturated market.
If you’re a dropshipper or working for a dropshipping company, then 90% of the time your target market would be the United States. It’s not just you targeting this demographic to sell your products, 90% of dropshippers target market is the United States. According to a survey, 65% of the dropshippers never promote their products outside the USA.
Does this mean people outside the US are penniless? Does this mean they don’t have access to the internet?
They are just a little bit concerned about the quality of the products sold online and the delivery time. Simply, they don’t want to use their credit cards online and get scammed.
Rise of Cash On Delivery
What is Cash on Delivery? This is a form of payment for purchases made online similar to any other eCommerce transaction. Except for the fact, here the buyer pays for the product only upon delivery.
In this form of payment, the buyer is more confident and the sales are also higher for online merchants.
Imagine this. Joe lives in Dubai UAE. He wants to shave his beard at home without the help of a barber. He stumbles across an advertisement online for an amazing electric razor. Joe doesn’t like to use his credit card online. So he chooses to pay upon delivery. He sees the product first before he pays. He receives his order much faster and pays in cash.
Benefits for Online Sellers
Increased Conversion Rates – For Merchants, Cash on Delivery Significantly increases the conversion rates and bring in more sales.
No Refunds and Returns – Since the payment is made only after the product is delivered. Merchants will never receive returns or refunds.
Low CPM and High Return on Investment – Cash on Delivery enables you to sell on untapped markets where the cost of customer acquisition or your cost per purchase is way lower. Like the good old days of online marketing. With the Low CPM and no chargebacks. Your return on investment is much higher than the typical dropshipping stores.
No Payment Gateways, No Hidden Fees and No Payment Hold – Since the payment is made upon delivery in person to the courier company. You don’t need a payment gateway to start selling online. This also cuts the payment gateway transaction fees and the money holds on your account ending your business cash flow.
Benefits for Customers
Happy and More Confident Customers – Customers are more confident and comfortable paying on delivery. When the merchants deliver the product they promised. Nothing makes the consumer happier.
Fast Delivery – Products sold on Cash on Delivery has a very fast shipping time compared to typical dropshipping products. Since you’re dealing with an exclusive courier and fulfillment service, Most of the time the package will be delivered within 2-5 days.
No Online Scams – No Chance for Online Scams. You see the product from the comfort of your home before paying a dime.
Woah! Does it seem like a very interesting and profitable business model? But how do you get started? How do you find a product which can be sold with COD and how do you find a courier service that will deliver the product for you. After all, how do you create your First Cash on Delivery Sales Funnel?
Cash On Delivery Funnels with Funnel Genie
Funnel Genie is a COD eCommerce software and community that helps you build the most user-friendly and fastest COD funnel in the industry. You can now sell on hidden markets such as UAE, Singapore, Saudi Arabia and more. It’s much cheaper and easier to start your own COD business with Funnel Genie. And the best part, It has all the features you need to start a profitable Cash on Delivery Business.
Don’t Worry About Fulfillment – Every Funnel Genie merchant will get an exclusive courier service working for them. These Courier services will deliver the product within 2-5 days and collect the money for you.
More Cash Flow for your Business – With Funnel Genie you can get the money to your account in a week or less.
Sell on Untapped Markets – With Funnel Genie you can sell on untapped markets that nobody is talking about. This is called “Blue Ocean” where nobody is fishing.
Ready to use COD Funnels – You can create Cash On Delivery funnels and start selling in minutes. In addition, Funnel Genie members also get access to Premade Video Ads, Product Copy, Ad Copy, Targeting, and Demographics ready for them to use.
One Page Checkout – Well Optimized and Fully Customizable Product and Checkout Pages that increase your conversion.
Increased AOV – Upselling and Cross-Selling Feature to Increase Your Average Order Value.
Support – 24/7 Customer Support and a Very Active and Supportive Community.
Mobile App – Use the Mobile app to get live notifications of orders and measure and manage your funnels.
Making big with Dropshipping is still possible. But with Cash On Delivery, it’s much easier and less competitive.
The Best part of starting a COD business is that it solves some of the most serious problems with dropshipping like long shipping times, payment gateway problems, High CPMs and low-profit margins.
Simply, COD is a form of Dropshipping with better ways to sell dropshipping products.
So what do you think of Starting a Cash on Delivery Business? Let us know in the comments section below.
Happy Sales Everyone 🙂