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Paypal asking for invoices/receipts and I DROPSHIP

Discussion in 'Ebay' started by qwerty12345678, May 12, 2016.

  1. qwerty12345678

    qwerty12345678 Newbie

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    My paypal account was limited because they "noticed some significant changes to my account activity" and they requested the following:
    - Upload a photo ID
    - Provide proof of your address
    - Confirm your Social Security number
    - Provide your business information
    - Provide Supplier Information
    - Provide proof of shipping
    - Provide invoice (We?d like to confirm that you have the items you?re selling)

    I called and I was told that it was limited because of several recent refund transactions. I provided some of the info and then called again to see if that was enough, and I was told by the second person that it wasn't related to the refunds, that it was just a standard protocol for accounts, and that I must upload the INVOICES/RECEIPTS for 5 specific items I've sold and then they will restore my account.

    All of my items are DROPSHIPPING purchases (from amazon and other online retail stores), so I'm very concerned that if I show them the receipts that they will close my account since I don't actually have the items I'm selling.

    Also, one of the 5 items was a refund because the store was out of stock and I couldn't find it anywhere else. Therefore, there is no invoice/receipt for it.

    I've seen a few posts about creating fake receipts/invoices but I'm not feeling too confident of my ability to do that and I'm worried that if they realize they are fake that it will make the situation worse. I also read on another post that paypal will contact the suppliers to verify the invoices. Is that true?

    Have any other dropshippers had their paypal account limited like this? I would really appreciate any advice. I'm really worried that my account will be closed. This is currently my only source of income. Also, my rent money is currently locked in my paypal account.

    Also, I use my paypay account to make the purchases, so if I have a sale, I can't purchase the item right now.

    Is that a mistake to use the same paypal account for purchases and sales? Should I temporarily unlink my paypal account (which is a business account) from ebay and link my personal paypal account instead?

    Thanks for any help on this!!
     
  2. speeder33

    speeder33 Junior Member

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    When paypal asks for the SSN, it is basically the kiss of death. It means they have almost 0 trust in your account. Be wary of what reps tell you. They will say whatever possible to get you off the phone. Even if you provide the invoices, there is no guarantee that they will not still ask for the SSN.

    At this point, your best bet is to make the documents. If you are uncomfortable making them, there is a seller in the marketplace section.
     
  3. orangesaber

    orangesaber Newbie

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    What I do is periodically move money from paypal into a bank account, make purchases with credit cards, then pay off the credit cards with money from the bank account. The upside of doing this is that when paypal freezes my account temporarily (which happens every few months it seems) its easy to survive, but the downside is that it takes some time to move money from paypal to a bank account (a few days), so depending on your credit limit and volume of sales, you may have difficulties. Many credit cards have cashback, so you can get a few percent back on each purchase and make a larger profit. I never had paypal ask for a photo ID and SSN, but I did have ebay ask for it, and I just gave it to them. They just want to be sure you won't, at some point, stop shipping products and pocket sales for a few days before getting shut down, leaving them to reimburse buyers with their buyer protection policy.

    You will need to do something about your invoices, though. Don't worry about the item that was a refund. Simply tell them the same excuse you told the seller in that case and ask them if they'd like the invoice for another item, or if the 4 others you gave them will do. There is a human on the other end of this verification, so its not as though having everything exactly perfect is necessary. When they asked for 2 years of income statements once, I only gave them 6 months and said it was "as much as I could provide in a reasonable timeframe" and that was good enough for them.
     
  4. qwerty12345678

    qwerty12345678 Newbie

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    I don't mind providing my SSN; I've already provided my ID. My only concern is providing invoices, since I've been dropshipping. It is my understanding that paypal (and ebay) don't like dropshipping and I'm concerned they may cancel my account. Again, my only concern is their position on dropshipping and if I should provide the real receipts/invoices or create fake ones. I read on another post that paypal will contact the suppliers to verify the invoices. Does anyone know if that is true?

    Was it a mistake for me to use the same paypal account for dropshipping purchases and sales? Should I temporarily unlink my paypal account (which is a business account) from ebay and link my personal paypal account instead, until this is resolved so that no more of my money is frozen with new sales?

    Thanks
     
  5. qwerty12345678

    qwerty12345678 Newbie

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    Thank you very much for your reply. Do you dropship also?

    Going forward, I will be sure to keep a low paypal balance. I was assuming that that they would actually like seeing a higher balance, which is why I kept the money in there.

    What is your recommendation on invoices? Is it safe for me to tell them I am dropshipping and give them the real invoices/receipts for the 4 sold items, even though they are dropshipped purchases (I purchased the items after they sold on ebay and had them shipped directly to the customer) or should I try to create fakes ones (and if so, what is an ideal fake invoice)? I read somewhere else online that paypal will contact the suppliers to verify the invoices. Do you know if that is true?

    On the refunded item, are you saying I should tell paypal that I never had the inventory because it was a dropshipped item?

    Do you think that it was a mistake to use the same paypal account for purchases and sales? Should I temporarily unlink my paypal account (which is a business account) from ebay and link my personal paypal account instead?

    Thanks!
     
  6. orangesaber

    orangesaber Newbie

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    I do, with a group of other people.

    They do like seeing a higher balance which can be difficult to do if you're using that money as your sole income. If you repeatedly take all (or most) of the money out of your paypal, then they may put a rolling restriction on your account, where they take a certain percent of each transaction (after paypal fees) and hold it for some number of days (usually a month or two). This is hard to deal with at first, but after the number of days specified in the rolling restriction pass, then each day you end up getting a certain amount held, but get about that much back from the past. They can also place a hold on a certain amount of money in your account (say 5k) that will be held until you end up stopping your account.

    My advice would be to try to keep a moderately high balance, but also to set up some recurring withdraw into a bank account.

    I got help in this case from someone more experienced than me and they handled that part of the process. I'm not sure if paypal does check the suppliers, but they might do some simple checking. If your suppliers were Chinese, it would be harder for them to examine. I recommend looking into what the other poster was suggesting.

    Whenever I cancel transactions or refund people, I give them an excuse. For instance, "before shipping I realized that the product had gotten damaged" or something. If paypal asked about that item, I would tell them about that exchange (maybe giving a message ID to legitimize it) rather than worrying about faking an invoice or tracking.

    I've always just used one paypal and it's worked out fine. I'm not sure if it's a mistake or not in the long run, though.
     
  7. qwerty12345678

    qwerty12345678 Newbie

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    Thank you VERY MUCH for your reply. Do you think it is it safe for me to tell paypal that I am dropshipping and give them the real invoices/receipts for the 4 sold items, even though they are dropshipped purchases? Should I also tell them the 5th unshipped item was never purchased because it is a dropship also and my supplier ran out of stock? Or should I create invoices that show I had made wholesale purchases and had the product in inventory. I don't know what paypal's position/opinion is on dropshipping.

    Do you mind letting me know the more-experienced person who helped you?

    Thanks!
     
    Last edited: May 12, 2016
  8. SEO Authority

    SEO Authority Senior Member

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    Wait I can try to help you - let me message you - or you message me your skype
     
  9. qwerty12345678

    qwerty12345678 Newbie

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    Thank you VERY MUCH for your reply. Do you think it is it safe for me to tell paypal that I am dropshipping and give them the real invoices/receipts for the 4 sold items, even though they are dropshipped purchases? Should I also tell them the 5th unshipped item was never purchased because it is a dropship also and my supplier ran out of stock? Or should I create invoices that show I had made wholesale purchases and had the product in inventory. I don't know what paypal's position/opinion is on dropshipping.

    Do you mind letting me know the more-experienced person who helped you?


    I've done that also, but paypal is still asking for a purchase invoice to confirm that I had the item. Should I tell them the truth, that I didn't have it because it is a dropshipped item? Or should I create a fake invoice, or something else?

    Thanks much!
     
    Last edited: May 13, 2016
  10. SEO Authority

    SEO Authority Senior Member

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    Yes I agree - make the documents. Or pay someone to do so. This is your best bet.

    Providing your SSN isn't the end of things. I've been audited too when I did high volume, and things became okay after I complied.
     
  11. qwerty12345678

    qwerty12345678 Newbie

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    Thank you very much but I can't send messages yet because I'm new. When I tried to reply to your message it said that I had to have 15 posts before I can send messages.

    But thank you very much for suggestion. Do you know anyone who does that? I'm not sure I'm skilled enough to do it myself.

    Thanks!!
     
  12. qwerty12345678

    qwerty12345678 Newbie

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    Thanks. Do you know how closely the invoices will be scrutinized? I'm not feeling too confident of my ability to make them. Or do you know someone you can recommend? Also, is paypal likely to confirm the orders with the supplier(s)? Someone wrote in another forum that paypal does contact the suppliers, and if verification fails the account will be permanently limited and my funds help for 180 days. Do you know if that is correct? Thanks!
     
  13. toml3030

    toml3030 Elite Member

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    Depends on what brand. If it's something like Apple, Louis Vuitton or Northface products, fake invoices are not going to pass their scrutiny.

    This is correct. Some brands either have no legal grey discounted market goods that can be sold as new (Louis Vuitton) do their own distribution (Northface) or their distribution channel is extremely limited (There is no such thing as an Apple distributor for online resale) so they can tell pretty much off the bat whether you're selling genuine items or fakes. If they already know that you're selling fakes, they're pretty much already decided to ban you, and asking for paperwork is mere formality at this point. Where the fake invoice thing works is on brands that have grey markets and distribution channels that are not controlled by the brand.
     
    Last edited: May 13, 2016
  14. qwerty12345678

    qwerty12345678 Newbie

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    No, the items are household goods/tools/sporting goods/toys. Thanks


    I'm not selling any items that would be counterfeited. It is mostly mundane stuff. Thanks

    Do you agree that I should create invoices/receipts, rather than show the real ones? If so, do you happen to know anyone who does that? Thanks!
     
  15. toml3030

    toml3030 Elite Member

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    Sporting goods and toys are counterfeited A LOT. Although it sounds like you didn't do anything that they would immediately ban you for no matter what you did.
     
  16. qwerty12345678

    qwerty12345678 Newbie

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    I'm buying the items at retail prices from common online U.S. retailers who have stores in every major city. There is no chance any of it is counterfeit. The only issue I have is the dropshipping. Should I should I show paypal the real invoices/receipts or create other ones? i.e., will paypal close my account for dropshipping? If so, can anyone recommend anyone to help with the invoices/receipts? Thanks!