Dropshipping

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Raeel
Tourist
3 0 0

I am just starting and I am a little confused on the payments. Do I have to pay the company before they will ship or does what the customer pays, go to them and then ship? Thank you for any help

Accepted Solution (1)

Accepted Solutions
Helen
Shopify Staff
Shopify Staff
1425 174 254

This is an accepted solution.

That’s a valid concern, @Raeel. The length of time it takes to receive your payouts will depend on the payment provider you are using. Which payment gateway are you using on your store? If it’s a third party gateway, please contact your provider directly to discuss their payout schedules.

 

However, if you’re using Shopify Payments, then you can set up a payment schedule in your admin by going to ‘Settings > Payments > Manage’. Keep in mind though, that it can take 24-72 hours for your bank to process your payouts, so even if you set your payout to every business day, the funds may not be available until a few days later. For more information and expected timelines, please see the Help Doc for Getting Paid with Shopify Payments.

 

There are also some good tips about finances when dropshipping in the blog on How to Start a Dropshipping Business. One of the recommendations is to have a business credit card to use strictly for inventory purchases from your supplier. This way you’re able to place the order for your customer as soon as possible, and don’t have to wait to receive the payout from their purchase before completing the transaction.

 

Hope this helps!

Helen | Social Care @ Shopify 
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Replies 11 (11)
Helen
Shopify Staff
Shopify Staff
1425 174 254

Hey, @Raeel. That’s a great question! The dropshipping business model can be difficult to wrap your head around at first, so it’s a good idea to gain a better understanding of it before launching your store.

 

To answer your question, in terms of payments, you will need to pay your supplier for the item your customer orders before they will ship it. Essentially you are the “middleman” in a dropshipping scenario: Your customer purchases from you first, then you purchase the same items from the supplier on your customer’s behalf.

 

The profit you make comes from the difference in price that your customer pays you, and what you pay the supplier. For example: 

 

Supplier’s price of an item = $10.00 

The price on your store (ie. what your customer pays) = $15.00

Your profit = $5.00

 

You get to decide the price at which you set the products to be on your store, so you’re in charge of the profit you’ll make. Does that make sense?

 

We have a lot of resources available to help you learn more about dropshipping. I recommend starting with these:

 

 

What kind of products will you be selling? Have you given any thought to your marketing plan yet? The Best Dropshipping Products To Sell In 2021 (And Ideas To Market Them) is full of inspiration if you’re still in the planning phase. I recommend giving it a read through as well.

 

I hope this information helps! If you have any other questions, or want to continue to discuss dropshipping in general, just let me know. Good luck!

 

 

Helen | Social Care @ Shopify 
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Raeel
Tourist
3 0 0
Thank you so much. I listened to a few of the videos after posting
this..lol He pretty much answered it and then some. Thanks for taking the
time to help me out. 😃
Helen
Shopify Staff
Shopify Staff
1425 174 254

No problem, @Raeel! I’m happy to help.

 

That’s great to hear you found the answers you needed. Which video did you watch? If you haven’t seen it yet, the Shopify channel on Youtube also has a ton of videos for starting and growing your business. Check it out!

Helen | Social Care @ Shopify 
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 - Was your question answered? Mark it as an Accepted Solution
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dropship_helps
Shopify Expert
1744 55 261

Hi @Raeel 

The Customer Pays you.

You keep your profit and pay the supplier.

Supplier delivers directly to the customer. 

Dropshippinghelps.com We Help Shopify Dropshippers
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Raeel
Tourist
3 0 0
Hi, Thank you. If I may ask, how long in your case, does it take to get
customer pymt to your financial institution? Im just worried about that and
not having enough to cover one day.
Helen
Shopify Staff
Shopify Staff
1425 174 254

This is an accepted solution.

That’s a valid concern, @Raeel. The length of time it takes to receive your payouts will depend on the payment provider you are using. Which payment gateway are you using on your store? If it’s a third party gateway, please contact your provider directly to discuss their payout schedules.

 

However, if you’re using Shopify Payments, then you can set up a payment schedule in your admin by going to ‘Settings > Payments > Manage’. Keep in mind though, that it can take 24-72 hours for your bank to process your payouts, so even if you set your payout to every business day, the funds may not be available until a few days later. For more information and expected timelines, please see the Help Doc for Getting Paid with Shopify Payments.

 

There are also some good tips about finances when dropshipping in the blog on How to Start a Dropshipping Business. One of the recommendations is to have a business credit card to use strictly for inventory purchases from your supplier. This way you’re able to place the order for your customer as soon as possible, and don’t have to wait to receive the payout from their purchase before completing the transaction.

 

Hope this helps!

Helen | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

Tuecus
Shopify Partner
2589 78 376

Hello @Raeel 

First customer will  purchase  products from your store ,then you have to place order to your customer from your supplier sites.

In dropshipping customer will order from your store, were you have to send  order details to suppliers who directly send to customers. Here i can suggest you supplier from where you can import products directly to your store. 

Thanks
Tuecus 

Apps Developer Team |
@Elist eBay Integration
@Tuecus-Customer Page
@Aliexpress Dropshipping & More
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InsureShieldApp
Excursionist
11 1 1

Hi @Raeel 

You also may want to consider shipping insurance as part of your drop shipping strategy. Sometimes, third party merchants will have a delay in shipping or send a damaged package. When that happens, you're responsible for filing a claim and making sure your customers are satisfied. InsureShield provides coverage for multi carriers, so whoever you're shipping with, your packages are covered for loss, damage or theft! All products ordered and shipped from your Shopify store will be covered. We also offer multi-carrier, multi-modal coverage. 

Check us out and tell us what you think: https://upscapital.com/ShopifyApp/

SanctityShip3PL
New Member
2 0 1

Hi @Raeel. In addition to all the great feedback above, if you haven't yet chosen a supplier or shipper, it's also wise to read into reviews of the supplier or ask to speak with a couple existing customers of a supplier you think you may want to go with in order to get a good feel for how they run their business (weather good or bag/one star or five stars). That will also give you peace of mind that the supplier/shipping company you partner with will have your back if something goes wrong with an order.

TeamSpocket
Trailblazer
155 10 24

Hi @Raeel , 

Great question! The dropshipping model usually looks like this: 

1. Customer buys from your website

2. You buy the item from the supplier

3. Supplier will ship out the item

In most cases, it is best to assume that the company or supplier requires to be paid first before they can process an order as they are only notified that there is an order to process one they are paid. 

If you're not using any dropshipping app right now, I'd like to recommend Spocket! Spocket dropshipping is one of the fastest-growing companies and we offer high quality and premium products from top suppliers. Sign up here and get your 14-day free trial!

 

 

SpocketSupport
Shopify Partner
42 1 0

Hi @Raeel,

If you are using a dropshipping app, normally payments of your customers are directly being sent to the payment gateway that you set up on your Shopify store, then you would have to make a payment for the order on the dropshipping app to pay for the supplier to proceed with fulfillment for them to ship out the ordered product.

Have you tried checking out Spocket? Spocket is one of the dropshipping apps mostly being used by retailers as it helps them get more products to sell on their store and it makes your dropshipping experience easier by adding products and fulfilling orders with just one click.

You can check out Spocket and try out the app by signing up on our 14 days trial period, you can start by signing up via this link: https://www.spocket.co/?utm_source=shopify&utm_medium=forum&utm_campaign=vash

Regards,
Vash & the Spocket team