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Noob question for dropshipping

Discussion in 'Dropshipping & Wholesale Hookups' started by Chees, Apr 30, 2010.

  1. Chees

    Chees Regular Member

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    Ok lets say there is the dropshipper and an item for 5$. I list this item on eBay for 10$. A client buys it and sends the money to my paypal. But paypal puts the funds on hold because it requires a tracking number. I send the address of the client to the dropshipper and they send the item. They will want to charge me for the item but the money are put on hold. So do I have to pay it with my own money and how does it work? And why everywhere says you don't need initial investment to do dropshipping?
     
  2. Chees

    Chees Regular Member

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    bump! anyone ?
     
  3. afanasi

    afanasi Junior Member

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    sounds like that's something you're going to need to deal with with out of pocket money.
     
  4. itsmymoneyandiwantitnow

    itsmymoneyandiwantitnow Newbie

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    I dont know paypal never holds my money its usually instant for me
     
  5. vovvnesk

    vovvnesk Junior Member

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    I think the money is too low for paypal to care lol, they usually dont hold 10 dollars, I guess u have to deal with it out of ur own pocket like above, but its only 10 dollars who cares =P
     
  6. Jonny13131

    Jonny13131 Regular Member

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    Paypal only hold the cash if its a more expensive item
     
  7. purebackend

    purebackend Newbie

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    Well, if you follow all the rules, you are not supposed to be doing this on ebay. But let's screw the rules for a second :)

    So, normally if your paypal account is in good standing, they won't hold the funds unless it is a big purchase, and even then most of the time for good accounts they won't hold.

    Ideally, you want your supplier to accept paypal as well. So you can use your paypal account for everything. You get paid, you pay supplier, and whatever is left in paypal is your profit. It makes the cash flow process much easier.

    Lastly, what they mean by no investment for dropshipping is you don't have to buy 10k worth of stock and try to sell it. Fronting cash for sales isn't much and if you have enough margins, you won't have to front for long.

    Dropshipping is a great way to start, the only downside is your cost for the products is higher so your margins are usually smaller. But if you can move enough product you can graduate to wholesale if it makes sense for you.

    Good luck
    weeeeeeeeee