It's just not clear to me how part of the money is allocated to the supplier!?

Product Development & Sourcing
1

Greetings

I’m getting ready for dropshipping. I’ve read a lot online about this, but there’s one thing I don’t understand.

The buyer transfers the payment for the product. Okay.

How does this amount travel forward?

For example:

I sell the product for $3. The buyer transfers the sum to my account.

$1 goes to the supplier

$2 down stays with me. That’s all right.

It’s just not clear to me how part of the money is allocated to the supplier?

Is this automatic on Shopify or do I have to manually share this myself!?

If someone can explain this procedure to me in detail, I will be very happy.

I can’t find this info myself.

Thank you

Best regards

Jan future dropshiper.

Samo ni mi jasno, kako se del denarja nameni dobavitelju?

2

@shopfree it’s completely up to you and your supplier.

I’ve worked on stores with a dropshipping model, here are some examples I’ve seen:

  • Supplier direct debits from your bank account once per week for all the products ordered in that period (great system for trusted suppliers)

  • Supplier sends an invoice once a month (this system is great if you can get it, but requires a good relationship with the supplier)

  • Pay the supplier per order (usually once per day place all orders, via csv or email) before they ship the product (pretty common for just starting out or suppliers you don’t have a relationship with)

Talk to your supplier to see what terms yall can agree on.

3

Greetings

It’s all clear to me that I have to pay the supplier. I’m interested in how the technical thing goes.

The buyer pays How does this money travel from there to me and to the suppliers. I’m interested in exactly how the process works!!! Process!!!

For example

1st step buyer payment

2.. step…

Step 3.

How exactly is the paid money distributed, from the payment of the product (which I assume goes to my bank account) to the final payment of the supplier on AliExpress.

IS THIS PROCESS AUTOMATED?

It will do business with AliExpress suppliers and there may be 50 and more of them.

4

does the direct debit incur transfer fees or wire fees if my bank is in the u.s. ?

thanks