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Cash on Delivery (COD): How to start from scratch

30 de octubre de 2023


Cash on Delivery is an online business model that has gained popularity in recent years. It allows customers to pay cash upon receiving their products, often giving them a greater level of confidence in their purchase. If you are interested in starting an online business and wondering how to get started with Cash on Delivery, you are in the right place. In this article, we will provide you with a detailed guide to start from scratch, considering the tools that can boost your business.

What is Cash on Delivery?

Cash on Delivery (COD) is an online business model in which customers place orders through your e-commerce platform, but instead of paying online with a credit or debit card, they make the payment in cash at moment of receiving the products at your door. This method is especially popular in regions where trust in online transactions is a challenge, as customers may inspect the product before making payment.

Step 1: Planning

Before starting Cash on Delivery, it is important to do solid planning. Here are some key steps:

  1. Market research : Understand your audience and the potential demand for your products or services. Find out if there is a market for COD in your area.
  2. Legislation and regulations : Research local and national regulations related to e-commerce and COD. Make sure you comply with all applicable laws.
  3. Logistics and delivery : Plan how deliveries will be made. You can work with local courier services or manage your own logistics.

Step 2: Configuring the E-Commerce Platform

The next step is to establish an e-commerce platform. You can choose to use an existing platform like Shopify, WooCommerce, or Magento. Make sure your platform is easy to use and supports cash payment as an option.

Step 3: Policies and Processes

Define your Cash on Delivery policies. This should include details about additional costs (if any) and delivery area. Make sure your clients clearly understand how the process works.

Step 4: Order Management System

It is essential to have an efficient order management system. This will help you track orders, schedule deliveries, and keep a clear record of transactions.

Step 5: Advertising and Marketing

Promote your Cash on Delivery business. Use online marketing strategies such as social media advertising, email marketing, and SEO to attract your target audience.

Tools to Boost Your Business COD

Here are some tools that may be useful:

  1. E-commerce platforms : Use platforms like Shopify, which offer options for COD and allow for easy order management.
  2. Cash payment systems : Collaborate with cash payment systems like Paytm, which make it easy to manage cash payments.
  3. Logistics Management : Lean on reliable courier services and use logistics management software to track deliveries.
  4. Analytics and tracking : Use analytical tools like Google Analytics to measure the performance of your website and marketing campaigns.
  5. Customer Service : Implement an effective customer service system to address your customers’ questions and concerns.


Starting a Cash on Delivery business from scratch can be challenging, but with proper planning and using the right tools, it is totally doable. As you build and grow your business, maintain a focus on customer satisfaction and continuous improvement of your processes. Over time, Cash on Delivery can become a successful digital business model that offers convenience and confidence to your customers. Good luck in your venture!