How can I unfreeze my dropshipping account and access funds?

Product Development & Sourcing
1

I recently started my dropshipping journey and opened my first Shopify store. The traffic to my store primarily comes from TikTok, and based on the views of my TikTok videos, I generate sales.

After one of my TikTok videos went viral, I experienced a high increase in sales. While this was fantastic news, I found myself in a difficult situation. I didn’t have enough funds to fulfill these orders immediately, and Shopify froze my account, along with the funds.

I managed to use my own money to fulfill around 100 orders paid via PayPal, hoping to at least cover those. However, shortly after, I received an email from PayPal stating that they had frozen my account due to a high number of chargebacks. This was a result of me not being able to fulfill orders promptly because of the frozen funds from both Shopify and PayPal.

I’ve already used my personal funds to fulfill as many orders as possible, but I’ve reached a point where I can no longer do so.

Could you please advise me on the steps I can take to unfreeze my Shopify account and access the funds as soon as possible?

Thank you very much for your assistance.

Best regards,

Dejan

2 Likes
2

Hi @Dejan3

I completely understand the tough spot you’re in. It sounds like your store experienced a sudden surge in sales due to a viral TikTok video, which led to Shopify and PayPal freezing your funds due to risk concerns. This happens when platforms detect an unusual spike in sales without a strong history of order fulfillment, as they see it as a potential risk for chargebacks and disputes.

Why Shopify and PayPal Frozen Your Funds

When a new store experiences a massive spike in orders, Shopify’s risk system flags it for potential fraud or fulfillment issues. Since you were unable to fulfill orders quickly, PayPal also noticed the increase in chargebacks and took action to mitigate further risks.

Steps to Unfreeze Your Shopify Account and Access Funds1. Contact Shopify Support Immediately

  • Go to Shopify Support and open a ticket explaining your situation.
  • Provide proof that you are actively fulfilling orders. This includes:
    • Tracking numbers from already fulfilled orders.
    • Supplier invoices proving you are sourcing products.
    • Communication with customers regarding order status.
    • Screenshots of PayPal transactions showing payments made to fulfill orders.

  1. Check for Any Shopify Documentation Requests

    • Shopify may have sent you an email asking for verification documents.
    • Provide any requested documents ASAP (ID verification, business registration, supplier invoices, proof of order fulfillment).

  2. Reduce Chargebacks by Communicating with Customers

    • Send an email to all pending customers explaining the delay and offering a clear resolution.
    • If possible, offer partial refunds or gift cards to those who may be unhappy to prevent further chargebacks.

  3. Request a PayPal Review for Fund Release

    • Go to the PayPal Resolution Center and submit the same order fulfillment proof.
    • Call PayPal support and explain that you are actively resolving the issue and need the funds released to complete pending orders.

  4. Build a Stronger Payment Flow to Prevent This in the Future

    • Consider using Shopify Balance or a business credit card to handle order fulfillment before Shopify releases funds.
    • Set up a rolling reserve with PayPal to minimize sudden freezes in the future.

Next Steps- Keep fulfilling orders where possible to prove that you are running a legitimate business.

  • Maintain constant communication with Shopify and PayPal to ensure your case is moving forward.
  • Monitor chargebacks closely and issue refunds proactively to avoid long-term damage to your accounts.

If you need any other assistance, feel free to ask, and I will try my best to support you.
Best regards,
Daisy.