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Paypal allowed dropshipping or not?

Discussion in 'General Business' started by fhassan, Feb 21, 2009.

  1. #1
    Can I use paypal for dropshipping. I heard paypal prohibited dropshipping. I didn't know that before. already sell something by dropshipping using paypal.
     
    fhassan, Feb 21, 2009 IP
  2. teo123

    teo123 Banned

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    #2
    I never heard that you couldnt -- new news to me.
     
    teo123, Feb 21, 2009 IP
  3. PHPGator

    PHPGator Banned

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    #3
    As far as I know, you can. I don't see a reason that would keep you from doing so. The only thing about dropshipping is that you are paying for someone else to ship the product for you. If the product runs out of stock or you for whatever reason can't mail the buyer the product, then you will be forced to refund.
     
    PHPGator, Feb 21, 2009 IP
  4. mentos

    mentos Prominent Member

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    #4
    I used paypal for my dropshipping biz for ages with no problem.
    But you must use business account or premier account for the dropshipping business.
     
    mentos, Feb 22, 2009 IP
  5. hari001

    hari001 Peon

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    #5
    Hi,

    I have heard about it that pay pal is prohibited by dropshipping and I don't have any idea about it.

    Stella
     
    hari001, Feb 22, 2009 IP
  6. ZTank

    ZTank Banned

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    #6
    I don't see why your not, I know of many dropshippers using paypal. Think most probally are.
     
    ZTank, Feb 23, 2009 IP
  7. Atuno.co.uk

    Atuno.co.uk Peon

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    #7
    I used PayPal for my dropshipping for a while a few months back. I know dropshipping is prohibited on eBay for obvious reasons, so maybe PayPal is the same.




    __________________________

    List your website on atuno.co.uk, £10 free accuont balance.
     
    Atuno.co.uk, Feb 23, 2009 IP
  8. Electro-Host

    Electro-Host Well-Known Member

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    #8
    PayPal may hold your funds until the item has been delivered. That's what stops some people from using dropshippers.
     
    Electro-Host, Feb 23, 2009 IP
  9. eddy2099

    eddy2099 Peon

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    #9
    It would certainly be a better idea to contact Paypal and ask them then you would get the most accurate answer to your question.

    Because when I read http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/ua/use/index_frame-outside Acceptable Usage Policy, one part seems ambiguous.

    Dropship does seems like a situation in which the item is not in the control or possession of the seller, don't you think ? The trouble is that you do not know whether the item is being shipped and if the right one is being shipped in the first place thus you may not have any proof of delivery and probably would lose out on every single dispute you would get.

    In order for you to win any dispute, you must have evidence that you actually ship the item out and in order to have that, you really need to send it out yourself and have the real-time tracking for delivery.

    Just a thought.
     
    eddy2099, Feb 23, 2009 IP
  10. TVS TELEVISIONS

    TVS TELEVISIONS Peon

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    #10
    I just completed building an e-commerce site TVS TELEVISIONS ONLINE using paypal as the vehicle to process payment for the items that are dropshipped. I put this together on the teachings of a company that specializes building sites of their own as well as showing others how to do it successfully. :)They have been using paypal since the beginning and still do even though they also use a seperate merchant account gateway as well, but they are doing hundreds of thousands in monthly volume without a hitch.
     
    TVS TELEVISIONS, Feb 23, 2009 IP
  11. nodropship

    nodropship Peon

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    #11
    You can use PayPal for dropshipping. PayPal may hold your funds for up to 21 days if you are dealing on eBay. However, if you have a transaction problem while using dropshipping you are going to be in trouble. Almost anyone can file a dispute and win when you are using dropshipping because of the third party warehousing for shipping. BE CAREFUL -- BUT IT CAN BE DONE.
     
    nodropship, Feb 23, 2009 IP
  12. viatorek

    viatorek Active Member

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    #12
    dropshipping is ok with paypal
    confirmed
     
    viatorek, Feb 23, 2009 IP
  13. nodropship

    nodropship Peon

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    #13
    How was it confirmed. I mean, I know it is ok -- but how did you confirm it? A call?
     
    nodropship, Feb 24, 2009 IP
  14. PerfectMoney

    PerfectMoney Banned

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    #14
    I disagree that paypal is Avoid drop ships industry,cause you know Onesource from worldwidebrands,this Huge drop shipping is FINE with paypal and Up to now ,this service is welcome many merchant who have drop shipping channel in there Line business
     
    PerfectMoney, Feb 24, 2009 IP
  15. pbr_201

    pbr_201 Active Member

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    #15
    no, you can use paypal even for dropship transactions
     
    pbr_201, Feb 24, 2009 IP
  16. Atuno.co.uk

    Atuno.co.uk Peon

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    #16

    If you sell on eBay, PayPal holds the funds until either:

    The buyer leaves feedback or;
    21 days have surpassed without a chargeback or refund attempt.

    Or something like that. I'ts good if you don't get paid direct from eBay. Like If you dropship from your own personal store.
     
    Atuno.co.uk, Feb 24, 2009 IP
  17. nodropship

    nodropship Peon

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    #17
    Right, the restriction is one unique to PayPal+eBay sales.
     
    nodropship, Feb 25, 2009 IP
  18. johntheadamsw

    johntheadamsw Peon

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    #18
    Let's clear the air about dropshipping (I've been doing it for almost ten years).

    You're going to read a lot of nonsense posted by brick-and-mortar merchants that dropshipping is not the way to go anymore, but this is garbage hype propagated by those who hate businesses that rely on dropshipping because they can under-price them every time due to lower operating costs. Drop-shipping is a perfectly legitimate business model.

    PayPal DOES allow drop-shipping. Google Checkout claims it doesn't (orders are supposed to ship within 24-hours of funds capture), but in reality they won't give you any trouble absent a customer complaint (after all, they're just as anxious as you are to make money). ALWAYS contact your customers and make SURE that they know exactly WHEN their product will ship.
     
    johntheadamsw, Jul 31, 2010 IP
  19. buywiser

    buywiser Peon

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    #19
    John,

    since you've been active with dropshipping for 10years+: which ones are the less croocked! (need help since I'm just starting...)
     
    buywiser, Aug 1, 2010 IP