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The Online Payment Journey: A Guide for Dropshippers

Jennie Olivia

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Jun 6, 2024

We've previously discussed various payment methods available for dropshipping. Now, let's delve into the dropshipping process step-by-step. Ensuring a smooth payment process is crucial for the success of your dropshipping business. A streamlined and reliable payment process not only enhances customer satisfaction but also reduces cart abandonment and increases conversion rates. Here's a detailed guide to help you optimize your dropshipping process:

Payment Flow Chart

During the confirmation process, your funds may be held by payment platforms for a certain period of time. This table provides an overview of typical hold durations for various payment platforms:

Platform	Payment Hold Duration	Comments
PayPal	Typically 21 days	Can be reduced to 7 days with shipping details or order completion. Holds vary based on account activity and risk factors.
Amazon	7-14 days	Funds are usually disbursed 7 days after the end of the shipping period; may take longer for new sellers or those with performance issues.
Shopify	Usually 7 days after fulfillment	Hold duration varies based on the payment provider and account status. Shopify Payments typically disburses within 3-5 business days.
eBay	Up to 21 days for new sellers 1-3days for experienced sellers	Hold duration decreases as sellers establish a positive selling history. Funds generally released within 24 hours of delivery confirmation.
Stripe	7-10 days for first payout 2days for subsequent payouts	Subsequent payouts are typically processed on a 2-day rolling basis. First payout can take longer to mitigate risk.
Square	1-2 business days	Funds are generally available next business day, but instant transfers can be requested for an additional fee.

How does your money flow?

After understanding the dropshipping process, you might wonder how exactly your money moves from your customer's bank account to yours. As a dropshipper, having this knowledge ensures you understand the entire transaction journey, from your customer's payment to receiving funds in your account. Here's a clear picture of the entire transaction journey, including deductions by third-party entities like payment gateways or processors for their services.

By understanding these steps, you can ensure a smoother transaction process and provide a better experience for your customers while maintaining efficient cash flow for your business. This comprehensive approach to the online payment journey and order process will help you manage your dropshipping operations more effectively.