Dropshipping and Cash Flow

by roz28
2 replies
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I'm wondering what the cash flow situation is when you dropship.

All payment processors keep money in escrow until customer has received goods. Makes sense, except that it means purchasing from dropshipper is now being financed by me which makes things difficult.

Are there suppliers that work with you and let you order and ship in a timely manner if you show them that money has indeed been collected?
#cash #dropshipping #flow
  • Profile picture of the author roz28
    "Escrow" was my word choice. Nobody spoke of escrow. But digging into the nitty gritty of how these transactions actually occur, revealed that in no case whatsoever will the merchant be paid immediately. PayPal for example, until you have proven yourself with $150 in sales in 60 days. they will hold the money. After that, in subsequent transactions they release the money 3 days after delivery. This I found out by talking to PayPal customer service. It has nothing to do with me and my credit score. They didn't even know who I was. And by the way it's even worse with ebay - the threshold is bigger. AND it's the same with digital products. So the excuse of customer satisfaction doesn't even enter into it.

    Amazon pays 2 weeks after the transaction.

    Shopify, same.

    Who is this elite band of ecommerce geniuses you speak of? People who have been doing this for the past 10 years and who move millions of dollars worth of merchandise. How many of those are here in the forum asking for advice?

    Give the whole complete story to people who try to start out instead of half-truths that make people stumble and fail.
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  • Profile picture of the author dave_hermansen
    I just had a brand new private coaching student set up a website for the first time, set up PayPal for the first time and get their first order. They received the money into their account in 2 days just like we do. I have a funny feeling that even PayPal takes things like credit history and what country you are in into account with their policies.The student, like us, is located in the USA.
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