This is the method that I have used to bypass payment processor check. Aka Stripe/Paypal/2checkout.
Most of the time, payment processor frown upon dropshipper due to various business reasons. And this creates a problem for dropshipper like us. We CANNOT ACCEPT PAYMENT.
And to create a merchant account, you will need a Company setup which for a newly created store, will be difficult since we have limited capital available for investment in the beginning.
Paypal works well up till certain amount of sales volume, that is where they will ask for proof of invoices of purchase from supplier, and then relook into under writing the risk of under taking your business.
2checkout/stripe will ask for this upfront before they even under write your case.
What i do here is this. In the niche of my store, I buy something cheap and related to the item that I am selling on my store and list them as the product for sale in the beginning. I buy the product from Aliexpress and have it shipped to the same address where I register for my payment processor. Then i submit this invoice to the payment processor claiming that aliexpress is the platform that I use to purchase my inventories.
Points to note:
Do not list other products apart from the one that you have invoice upon. There will be manual review of your webite by the payment processor. However once your application is approve, they seldom review your site. Make sure you price your product on your website higher than your purchase price so that it looks logical to the reviewer.
There is no need to buy in large volume from Aliexpress. You just need a few product. I have got away with 3 items for 3 product cateogory and mentioning that this is a new store.
Why this method works?
You are showing the payment processor that you PURCHASE products upfront and you carry inventories. YOU ARE NOT A DROPSHIPPER. So payment processor will be happy with you (up till the extend where you start to receive a lot of chargeback).
Most of the time, payment processor frown upon dropshipper due to various business reasons. And this creates a problem for dropshipper like us. We CANNOT ACCEPT PAYMENT.
And to create a merchant account, you will need a Company setup which for a newly created store, will be difficult since we have limited capital available for investment in the beginning.
Paypal works well up till certain amount of sales volume, that is where they will ask for proof of invoices of purchase from supplier, and then relook into under writing the risk of under taking your business.
2checkout/stripe will ask for this upfront before they even under write your case.
What i do here is this. In the niche of my store, I buy something cheap and related to the item that I am selling on my store and list them as the product for sale in the beginning. I buy the product from Aliexpress and have it shipped to the same address where I register for my payment processor. Then i submit this invoice to the payment processor claiming that aliexpress is the platform that I use to purchase my inventories.
Points to note:
Do not list other products apart from the one that you have invoice upon. There will be manual review of your webite by the payment processor. However once your application is approve, they seldom review your site. Make sure you price your product on your website higher than your purchase price so that it looks logical to the reviewer.
There is no need to buy in large volume from Aliexpress. You just need a few product. I have got away with 3 items for 3 product cateogory and mentioning that this is a new store.
Why this method works?
You are showing the payment processor that you PURCHASE products upfront and you carry inventories. YOU ARE NOT A DROPSHIPPER. So payment processor will be happy with you (up till the extend where you start to receive a lot of chargeback).
