Is payment automatically captured and deposited in Shopify dropshipping?

J01ames
Visitor
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I have a question: when a buyer places an order on shopify, is the payment captured during the checkout process and will the payment be automatically deposited into the seller's bank account? and can the seller use that money to purchase the product from supplier to send to buyer?

Reply 1 (1)

Andrew
Shopify Staff (Retired)
1746 173 316

Hi @J01ames

Those are several great questions, and I'm going to tackle each one here:

"when a buyer places an order on Shopify, is the payment captured during the checkout process"

You can actually decide to capture the payment manually or have it captured automatically. Some store owners opt to capture payment manually because it gives them the chance to review the order to check if it's fraudulent before accepting the customer's money. You can also review several orders at one time and then manually accept them in bulk.

Of course, automatically capturing payment means the money is immediately accepted and sent to your bank account.

"will the payment be automatically deposited into the seller's bank account?"

How quickly those funds actually reach your account depends on a few factors. Your bank processing times, the payment gateway you're using, and other aspects.

"and can the seller use that money to purchase the product from the supplier to send to the buyer?"

If you do not have the cash float to purchase the product yourself, you must wait until the cash has reached your bank account from the customer before you can then fulfill the order in your dropshipping app.

We advise that you outline an expected processing time on your Shipping policy page to set expectations for your customers. This will buy you a few extra days so that you can wait on the funds from your customers to arrive into your account so that you can pay the supplier, rather than fronting the money yourself.

With that said, we always recommend that you have cash for the first few orders so that you can fulfill them right away or as soon as possible, to get the ball rolling. 

I hope this helps!

To learn more visit the Shopify Help Center or the Community Blog.