Dropshipping and paypal - need clarification.

joeavg · May 16, 2017

I've used the search button but i haven't found anything concrete. I think some answers here will clear things up for a lot of people especially the noobies like myself who have anxiety just reading about paypal issues.

- Currently using a business paypal account.
- Dropshipping with aliexpress.
- Not selling counterfeit goods.
- Not doing anything illegal and want to keep it that way.

1. What is paypal's stance on dropshipping and if they find out im already doing it can i get banned or will they give me a warning? What happens?

2. I've read about paypal asking people for invoices but if im dropshipping i dont have any invoices right? What am i meant to do in that situation? I dont feel good about sending fake invoices.

3. If i was to work out with a supplier to buy through them directly instead of aliexpress and get them to send it off. Is that against paypal's rules?

4. Anything else i need to know regarding longevity with Paypal and dropshipping?

Thanks

Opinionated · May 16, 2017

PayPal doesn't give as many issues as people think. A lot of people straight up scam people for a living and their PayPal is fine. You should be quite alright. You might have to find a work around for direct purchases though.

joeavg · May 17, 2017

@Opinionated - I appreciate the response but it doesn't answer the questions I'm concerned about.

Can anyone else please help with the questions I've asked?

IG Professor · May 27, 2017

I hope these will help you : http://www.paypalwarning.com/decided-dropship-screwed-paypal/

esketit · Jun 2, 2017

I think stripe, for ex., cares more about whether you're dsing or not - paypal, not so much.

roki4ka · Jun 2, 2017

Opinionated said:
PayPal doesn't give as many issues as people think. A lot of people straight up scam people for a living and their PayPal is fine. You should be quite alright. You might have to find a work around for direct purchases though.

If a buyer opens a dispute "Not as described" you lose it 90% of the time as a seller. They will return the money to the buyer and he have to return the item, however, he can return rocks. If he does that PayPal will tell you that you have to go to your local police station and open a fraud case. After few months (when your local police station collect enough evidence and finally contact PayPal) PayPal will "freeze" the current amount of money and will start an investigation. Further, you have to provide contact of your drop shipping supplier, receipts, and tons more of documents. Finally, it is 50/50 to get back your money. So, assuming you don't sell diamonds it is just not worth it.

Now the easier and logical thing here is to open your personal virtual POS. You will need a registered company (only here is the investment). At first, it may sound way too much money and effort but this POS will charge you only 0.4-0.8%, not 2.4% like PayPal. Second and more important - you won't pray every single time that the PayPal employee has drunk his coffee and had good sleep and even then the chances are 50/50, even if you have a complete track of every single order and conversation.

I am long gone from PayPal for good.

kenmole · Jun 3, 2017

roki4ka said:
If a buyer opens a dispute "Not as described" you lose it 90% of the time as a seller. They will return the money to the buyer and he have to return the item, however, he can return rocks. If he does that PayPal will tell you that you have to go to your local police station and open a fraud case. After few months (when your local police station collect enough evidence and finally contact PayPal) PayPal will "freeze" the current amount of money and will start an investigation. Further, you have to provide contact of your drop shipping supplier, receipts, and tons more of documents. Finally, it is 50/50 to get back your money. So, assuming you don't sell diamonds it is just not worth it.

Now the easier and logical thing here is to open your personal virtual POS. You will need a registered company (only here is the investment). At first, it may sound way too much money and effort but this POS will charge you only 0.4-0.8%, not 2.4% like PayPal. Second and more important - you won't pray every single time that the PayPal employee has drunk his coffee and had good sleep and even then the chances are 50/50, even if you have a complete track of every single order and conversation.

I am long gone from PayPal for good.

I am pretty much in thesame situation, i already setup an llc, how does one go about setting up a personal virtual POS?

roki4ka · Jun 4, 2017

kenmole said:
I am pretty much in thesame situation, i already setup an llc, how does one go about setting up a personal virtual POS?

Contact your local bank and tell them you have a company and you want virtual pos to accept payments on your site. Most of your local banks will work with the same gateway so their commission should be the same or almost the same but check 2-3 banks just to be sure you have picked the best for your needs. For example, my virtual POS cost me 0.4% per transaction + 10$ a month. If I want to add American Express support it goes to 0.8%

Dropshipping and paypal - need clarification.

joeavg

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Opinionated

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joeavg

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IG Professor

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esketit

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kenmole

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