Cash On delivery Dropshipping

I am doing dropshipping with cash on delivery no credit card payments I want to ask that I will list the product of my supplier and my supplier allows me to adjust as much profit as you want to the product so when I get an order now I will transfer it to the supplier then he will send the order collect the money from the customer as order arrives keep his product cost and shipping costs and give me the rest now the supplier only offers the 3 day product replacement not any refund if any special circumstances then may be but normally no so if I marketed the wrong product or something is because of me the shipping fees for replacement would be by me if supplier delivers the broken product then they handle it is it ok to work like this I know selling what you don’t possess is not allowed but is this ok