I'm from the Philippines and we have several drop shipping companies here, COD is a standard payment method everyone offers. The downside of it is that many customers say to the carrier "Pwede balik ka bukas?" or "Can you come back tomorrow?" This kills seller's margins as the shipping cost increases. Sellers don't have much to do about this issue.
For me personally, I think you should instead use a trusted payment gateway, unless you ship it to your customer yourself. When you ship the item to your customer yourself make sure to contact him/her during the process, so he has no excuse to run away when you get to his door step.