How do I pay my dropship supplier?

Hi Everyone,

I am planning on dropshiping items and I do not have any previous experience in the field.

Now, if a client pays for an item, can I use their money to pay for the item? Is there anything around that or does anyone know that it is not possible anymore?

Would I need to fork out using my own funds to pay and ship the goods before the payment gets cleared?

Can anyone give me any advice on that?

Thanks,

William

The simple answer is yes, you can use their money. In fact that what many do, sell the product, collect the cash and then use that to place the order. Two issues in play however, the first being that if a buyer is a slow payer, the that can equal a slow processing time. Now many with have the opinion that if the customer doesn't pay quickly, then they don't deserve quick order processing.

Deserved or not, if you are quoting shipping time on a website, then you leave yourself open to negative comments if you are hitting those quoted shipping times, and if you do that on a site such as eBay, then can really hurt your feedback.

A way around that is to put a payment time limit on any order to ensure you get the cash asap.

The second issue you can run up against and this is probably the most common is that if you have a newish PayPal account you are using to collect payments, then PayPal may well drop a hold on your account for a few weeks, This of course locks away all your funds and so you are then unable to use those until PayPal clears your account.

So that doesn't just effect one order, that will effect any orders coming through while your account is in limbo. So pay careful attention to that little problem because it catches out quite a lot of people of just don't account for it.

So is there a way i found using saletab on our list for some of my products like macbooks only isssue is if some one pays is there a way i can use their funds if they make payment without having to wait for paypal funds to be releasesd

what i am saying is there any way around this? or do i just have to wait for it to clear as i think saletab has a good selection of apple products not sure but im concern about the waiting of paypal funds to be processed by paypal?

if was to dropship say a macbook air from saletab how can i use my buyers money without using my own money first?

Is there a way around it?

There's no way around it if you're using PayPal and PayPal drop a hold on your account, it will remain locked and you won't have any use of those funds until they release your account hold.

An option would be to try and use another payment option, keep it well away from PayPal. Of course that option has the potential to hurt your sales because PayPal is seen as the most trusted ways to pay for online products.

My suggestion, get on the front foot and contact PayPal. Tell them the products you are going to be selling and give them the supplier details and any other info they ask for. That then gives them a chance to verify your account and you may well avoid a hold when you start trading.

I wanted to jump in here.
HI there, I'm new to Drop shipping, but I'm no stranger to running an online business.
If you have a brand new paypal account, a spanking new Ebay/Amazon account or the like,
what's wise is to NOT start out drop shipping. I spent a year getting to know Ebay's policies by the
back of my hand selling my own estate sale finds, garage sale finds, vintage items, and the like.
This is a lot safer if you're a beginner, as it gives you an opportunity to BUILD up a good reputation on your website of choice,
and develop good feedback. Getting yourself in a position to Drop ship takes time, and I think it would be
a potential disaster to try doing it without any real knowledge of selling. It takes time to develop a good business
sense in other words, and doing that with drop shipping can be very risky. Yes Paypal will hold
the funds until they feel you can be trusted. Developing a good relationship with Ebay AND paypal is a process.
I am now a powerseller and top rated seller on Ebay, but again, that was a process. I wasn't yet ready in
a position to just start drop shipping products I can't physically see or touch.

As an example, I have 100's of positive feedback on Ebay from running my own business. Now I'm in a
position to where potential customers feel they can trust me as a drop shipper as I have experience.
Also, research your companies thoroughly. Salehoo seems to be phenomenal at letting you know
the level of professionalism of any given company. If they're lacking it, that WILL reflect on you when
selling their products. Be careful out there...

Hi, riverwanderer9

Very, very helpful tips! Although a year to wait out and have a good standing seem too long, it is very sensible. I hope I figure out a way to increase my positive feedback and stars faster, as I am keen on starting with dropshipping.

Cheers!