So I recently started dropshipping again, and ran into a snag when PayPal started holding funds. Does anyone know of a way around this, or is it pretty much time to start putting up the dough ahead of time?

Originally Posted by iiaok

So I recently started dropshipping again, and ran into a snag when PayPal started holding funds. Does anyone know of a way around this, or is it pretty much time to start putting up the dough ahead of time?

Anything over $100 in electronics or DVDs, etc. will get the hold. I used to do the DVD box sets, I brought the price down to $99 to avoid the hold.

I have also successfully contacted the buyer and asked if I could refund the money and send an invoice. I just said something along the lines of "ebay/paypal put a hold on your transaction, can we try this again? I'll refund your money and send you an invoice with the item #" Worked pretty well.

Ahh yes, never thought to send an invoice. Great idea. I'll give that a try.

And yes, electronics suck. The thing that triggered the hold wasn't the items I was dropshipping, but my router that went for over $100.

Curious because I'm thinking of selling my iPod and maybe a computer. Does PayPal always hold electronics funds? Or is it just with really active sellers in that arena?

Originally Posted by MMBlack

Curious because I'm thinking of selling my iPod and maybe a computer. Does PayPal always hold electronics funds? Or is it just with really active sellers in that arena?

I guess,the hold is placed only if you sell through ebay since eBay owns Paypal...Otherwise, no issue. I am not sure though.

Well, I'm certainly not selling electronics to anyone if there's just going to be a hold on my account. How does that make sense? I don't get why sellers are so compromised and hated by PP and eGay.

If your buyer leave you positive feedback, Paypal will release your money. It happens to me when I had about 20feedback only.

the hold is for ebay only sales, they release the funds after 21 days or quicker if the customer leaves feedback when they get it

Originally Posted by LikeThisForam

Anything over $100 in electronics or DVDs, etc. will get the hold. I used to do the DVD box sets, I brought the price down to $99 to avoid the hold.

I have also successfully contacted the buyer and asked if I could refund the money and send an invoice. I just said something along the lines of "ebay/paypal put a hold on your transaction, can we try this again? I'll refund your money and send you an invoice with the item #" Worked pretty well.

Yes, but if you do this too much, your refund rate goes up in PayPals system and it won't take long before you are flagged and limited.

To answer the OP's question, start keeping your funds until the holding is removed. After a couple months of doing this, contact PayPal and say you would like this form of limitation removed as you plan to keep the funds in the account... and then start withdrawing after every transaction.

ive had loads of funds held on paypal