I couldn't find any help on this. I just want to double-check because I don't want my bank to bounce payments to me. I do not see where I entered legal business details, so I assume when Shopify's credit card processing service sends money to my bank, it will be in my name and not in a business name, correct? Second, I'm a little hazy......if I'm working with a drop shipper....a customer pays me for the item, Shopify credit card processing sends me the full amount minus processing fee, then I pay for the item through the vendor's app, and whatever is left over is mine, right?
Hey there, @Modem!
Ryder here, from the Social Care Team at Shopify. Thanks for reaching posting! It sounds like you're using Shopify Payments for your credit card payment processing needs. I'd be happy to shed some light on your inquiries.
If you'd like to confirm whether your payouts will be sent to the correct account, you can confirm this by going into your Admin > Settings > Payment providers. You can find the last 4 digits of the account number in the top left corner:
If you're unsure of what the bank statement descriptor will appear as - it's defaulted to Shopify - but if you'd like to change or confirm this, you can do so by clicking Manage in the Shopify Payments section. Under Payout details, you'll be able to view or edit the descriptor:
I hope that helps to clarify your question in regards to your Shopify Payment Payouts. You can learn more here. If you're using a third party payment provider, it'd be best to contact them directly for confirmation.
As for the dropshipping business model, you're correct. The payment the customer makes for their order will be deposited into your bank account directly, and you will need to submit the order and payment to the supplier. The remaining difference is your profit. Because payout periods can take a few business days, some merchants will choose to invest their own money upfront to order the products for the customer to avoid delaying the fulfillment. That being said, if you've already advised your visitors of lengthy shipping dates on your storefront, then you can indeed wait until you've received the payment in your account before fulfilling the order. If you're using AliExpress through the Oberlo app, you might find their guide on How to Fulfill AliExpress Product Orders helpful. Have you read our Ultimate Guide to Dropshipping? Chapter 7 of this guide provides deeper insight on running a dropshipping company, so I recommend reading it if you haven't already. Please let me know if there's anything I can clarify for you!
Ryder A. | Social Care Team at Shopify
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