orders, payments, payout, costs

[ashleyandamaya1]

Will someone please explain to me how the order processing works when dropshipping. when someone places an order who covers the costs when you have to sync that order from the store to an aliexpress supplier? once a customer places an order doesn't their money cover the cost for aliexpress? how long does it take for a customers payment to be processed and how much of it goes into payout?

[Trevor]

@ashleyandamaya1 

Great questions! 

• When someone places an order who covers the costs when you have to sync that order from the store to an aliexpress supplier?
  • You as the business owner would cover the costs to place the order on Aliexpress to begin the fulfillment process. You would need to use your own credit card. 
• Once a customer places an order doesn't their money cover the cost for aliexpress?
  • Technically, yes. However; the funds from the order are not sent to your supplier. The funds are deposited into your bank account as those funds would be the cost of the Aliexpress order plus your profit margin, and shipping (if applicable). 
• How long does it take for a customers payment to be processed and how much of it goes into payout?
  • This will depend on what payment provider you use and the fees the payment provider charges. For example, if you use Shopify Payments, then the funds would be deposited within 5 business days (depending on your country). We would automatically remove the credit card fee (2.9% + 30cents is the maximum amount. The amount is based on your plan). The remaining amount would be deposited into your bank account. More information on Shopify Payments can be found here. 

I would highly recommend reading over Oberlo's help documents as they provide a great deal of information about the ordering process and everything else you need to know about dropshipping. 

If you have any other questions or need clarification on the answers I've provided, let me know! 

[ashleyandamaya1 · Accepted solution]

This was amazing, thank you so much!