honestly paypal sucks. My first eBay / paypal ban was when I was drop shipping dyson vacuums in 2003. $350 vacuums were selling like hot cakes. I was making $50 profit on each one. I was accepting payments, transferring the money to my account, then purchasing them and having them shipped right to the customer. Typical turnaround was about 10 days.
It was great. UNTIL my paypal account got put on hold due to the significant increase in income. I went from getting no money to virtually $3000 / bi-weekly. ( I can understand why they put the account on hold BUT... )
I had a list of orders to fulfil and paypal insisted on me providing information on the last 10 orders ( mean while I had like 10-15 payments sitting in paypal). It basically came down to making the people who ordered first wait, while I provided documentation on the last 10 orders like paypal wanted.
Once the people who were waiting started complaining about how long it was taken to receive the item, I started refunding people their payment ( after letting them know the full situation with paypal). I think I received 1-2 payment disputes and paypal / ebay said I was too much of a risk. Closed me down (even despite me having many invoices, tracking numbers, etc for 10-15 of my very first orders). to give you a better idea, say I had 30 orders. When my account was placed on hold, I had already transferred the payments and setup the dropshipment for the first 10 orders. There were probably 8 orders (worth of payments) in the bank when they limited me and I still continued to accept new orders ( I didn't want to look suspect). By the time I had been told to submit paperwork I was about 26 orders deep ( remember first 10 were shipped). Paypal asked for information on the last 10 orders, which left 6 orders lingering while I cleared things up. It was those 6 orders that got me hosed.
When I started questioning their position on drop shipping, they told me that it wasn't against the Terms of service but that it was not recommended.
This was my first time through the ringer. Eventually, I signed back up, created multiple accounts, and have been able to avoid any more permanent suspensions. The above was a completely legit opportunity that I capitalized on. Its unfortunate that eBay / paypal suspended me but at that time there were people getting had all the time.
