How to Use PayPal for Dropshipping Without Getting Banned
Quick answer: Yes, you can use PayPal for dropshipping. Connect a PayPal business account to your store, then protect it by uploading tracking numbers for every order, stating realistic delivery times, selling quality products and answering disputes quickly. Long shipping times and disputes are the main reasons PayPal holds funds or limits dropshipping accounts. If you prefer, Stripe, Apple Pay, Amazon Pay or Skrill work as alternatives.
The work-from-home trend is one thing that most of us lived through during the Covid-19 crisis. It gave many people flexibility and an opportunity to start an online business such as a dropshipping store, and choosing how to accept payments is one of the first decisions.
What is PayPal Dropshipping?
PayPal is a prominent payment gateway, facilitating the global transfer of funds from one party to another. PayPal dropshipping simply means accepting PayPal payments in your dropshipping store. You can avoid problems by building a healthy PayPal profile with satisfied customers.
Should you Use PayPal for Dropshipping?
PayPal can be integrated into most online stores, but it can create problems for dropshippers. For example, if you run a store that ships products directly from China, longer delivery times are more common, and PayPal is strict about buyer protection.
PayPal’s possible problems when dropshipping:
Customers complain to PayPal about long delivery times.
PayPal almost always agrees with the buyer.
PayPal will immediately refund the money to the buyer.
Your PayPal account may be limited or blocked.
With PayPal, your funds can be held for up to 180 days.
Advantages of integrating PayPal payment into your dropshipping store:
PayPal payment options build trust.
Your customers get the best protection.
Can you Dropship Without PayPal?
Yes, you can run a dropshipping online store without PayPal!
Amazon Pay
Amazon’s payment option Amazon Pay simplifies payment processing for buyers. All important payment and shipping information is retrieved directly from Amazon, and customers don’t need to enter it again. The classic payment method used by Amazon is now also displayed in your online store. Pay by credit card.
Skrill
Skrill works like a prepaid wallet. Customers top up their Skrill account by credit card or bank transfer and use it to pay Skrill partners. Skrill uses standard credit checks to protect merchants and provide payment guarantees.
Stripe Payment
Payment provider Stripe offers websites and applications the possibility to accept and send payments worldwide. It suits companies of all sizes, both online and physical retailers. Stripe provides various integration options: Stripe Checkout dynamically adapts to the user’s device and location, ensuring a locally relevant shopping experience, and helping you improve the conversion rate.
Apple Pay
Apple has offered Apple Pay for many years, allowing contactless payment in local stores using iPhone or Apple Watch. Customers can also pay with Apple Pay in the Safari browser or in apps. You can use the interface provided by Apple for this purpose.
Things you Must do to Prevent Getting Banned by PayPal
Set Up a PayPal Business Account
Do not run your store on a personal PayPal account; take the time to create a dedicated business account for your store. Submit the necessary business documents to verify your identity, and make sure to fill in all necessary details, including information about stakeholders, legal information, etc.
Provide Legal Documents
When creating a PayPal merchant account, you need to submit your name and business name. PayPal may require other documents as well. The biggest mistake dropshippers make is not having their legal documents and registration certificates ready.
Provide Tracking Information
Select a shipping method that gives you a tracking number. Add the number to the corresponding order in PayPal (most store platforms can sync it automatically). The tracking number is your evidence of shipment.
Provide Clear Information About The Delivery Time
Another effective way to avoid a PayPal ban is to reduce the number of disputes on the account. Disputes often come from a gap between customers’ expectations and reality.
The biggest challenge for dropshippers is dealing with disputes that customers report directly to PayPal, without a chance to explain the situation first. Provide accurate delivery dates to customers, send follow-up emails or short messages to keep them informed, and share the tracking number so they can follow the delivery progress.
Selling Quality Products To Avoid Conflicts
Quality is another factor that leads to conflicts and disputes. Carefully check the samples obtained from suppliers. Knowing the functions and specifications of each product is also essential to better guide customers.
In order to build a good reputation, it is also important to invest time in creating custom product descriptions. You can add high-definition images and videos to highlight the real advantages of the product.
Provide Excellent Customer Service
For any dropshipping business, customers are the most valuable assets. Complaints and disputes may damage your reputation, so build good customer relationships.
Handle Your Dispute Wisely
Customers usually open a dispute for one of two reasons: INR (item not received) or SNAD (significantly not as described). Make sure to respond to every dispute as soon as possible, with tracking and product evidence.
Conclusion
As you can see, you don’t necessarily need PayPal in your dropshipping store, and other payment service providers are very mature. Of course, PayPal offers many advantages to your potential customers and can build more trust in your store, so many sellers offer it alongside other payment methods.
Honest FulPhilment works with suppliers carefully selected by our purchasing team, and checks product quality before shipping, so you can worry less about supplier reputation and disputes. We also provide attentive customer care. Welcome to contact us if you have any questions!
FAQ
Can you use PayPal for dropshipping?
Yes. PayPal allows dropshipping and integrates with Shopify, WooCommerce and most store builders. Use a business account, ship with tracking and keep disputes low, because long delivery times and unhappy buyers are the main reasons dropshipping accounts get limited.
Why does PayPal hold or limit dropshipping funds?
PayPal may hold funds for new sellers, sellers with long delivery times or accounts with many disputes, because it protects buyers in most cases. Uploading tracking numbers quickly and showing clear delivery times helps release funds sooner.
How do I avoid getting banned by PayPal when dropshipping?
Open a verified business account with your legal documents, upload tracking for every order, state realistic delivery times, sell products you have checked, answer customers quickly and respond to every dispute with evidence.
Can you dropship without PayPal?
Yes. You can accept cards and wallets through Stripe or Shopify Payments, and offer Apple Pay, Amazon Pay or Skrill. Many stores still add PayPal as an extra option because shoppers trust it.