Can I use Shopify payments for my dropshipping store?

ClaudeW
Tourist
8 0 3

I just had my stripe account shut down due to being a Dropshipping store, does Shopify payments allow dropshipping?

Replies 12 (12)
BrianAtWork
Shopify Partner
245 59 166

Hi @ClaudeW,

 

I am very sorry to hear about your Stripe account. Just so you are aware, payment processors typically consider dropshipping a high-risk business.

 

The reason is that some dropshipping providers have long shipping times and therefore there is an increased risk of chargebacks.

 

My understanding is that Shopify Payments does not allow dropshipping. This is despite the fact that many merchants here are doing it anyway.

 

Check out Shopify Payment Terms of Service. Here are the specific terms:

 

dropshipping-high-risk-businesses-shopify-payments.png

 

Here's an alternative list of payment providers that work with Shopify: http://bit.ly/2XyXW3F

 

I hope this answers your question. Let me know if you need further help!

Brian | Shopify Partner | Ecommerce Consultant
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Click Accept as Solution  
 - Need further assistance? Visit www.BrianAtWork.com

Sophia
Shopify Staff
Shopify Staff
1147 78 137

Hi, @ClaudeW!

 

Sophia here from Shopify. Welcome to the Shopify Community!

 

Brian is correct that dropshipping can often be considered high-risk by payment processors, but Shopify Payments is often able to support dropshipping stores. Whether you’re eligible for Shopify Payments depends on the location of your business as well as the types of products you’re looking to sell. It’s important that you review both the Shopify Payments requirements here as well as the Shopify Payments Terms of Service before you get started.

 

What kinds of products are you dropshipping? Let me know if you have any questions about the Shopify Payments requirements, setup, or about dropshipping with your Shopify store.

Sophia | 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

iaent
New Member
1 0 0

In your locations list why India is not available?

Sophia
Shopify Staff
Shopify Staff
1147 78 137

Hi, @iaent!

 

Sophia here from Shopify. Welcome to the Shopify Community!


While Shopify Payments isn’t available in India at this time, we do have a list of supported payment gateways for India here. In the meantime, I can submit feedback to the appropriate teams here to let them know you’d like to see Shopify Payments available in India in the future. Please let me know if you have any questions about your payment gateway!

Sophia | 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

Coralline
New Member
1 0 0
Hi Sophia,

I’m even more confused now. Does Shopify Payment allow dropshipping or not? Even if it is able to support dropshipping stores, what are the chances of my account being frozen due to dropshipping practices? Thanks!

Sophia
Shopify Staff
Shopify Staff
1147 78 137

Hi, @Coralline!

My apologies for any confusion caused here. As mentioned above in this thread, Shopify Payments can often support dropshipping stores. However, eligibility depends on several factors including whether Shopify Payments is available in your region as well as what types of products you're selling.

 

You will need to review the Shopify Payments requirements (specifically the Prohibited businesses section for your region) and ensure that your store is in compliance with Shopify's Terms of Service and Acceptable Use Policy.

Your Shopify Payments account would not be put on hold due to dropshipping, but rather could be temporarily held for a standard review or for failure to comply with the TOS or AUP linked here, so it is important to review these documents.

Sophia | 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

Medfad
New Member
2 0 1

Hey, i have noticed that dropshipping is no longer listed in the prohibited businesses, is it true, i am dropshipping products but i keep inventory in us warehouses and offer fast shipping, does that make me different, and also is there any possibility that moroccans would be eligible for shopify payments accounts? 

Sophia
Shopify Staff
Shopify Staff
1147 78 137

@Medfad wrote:

Hey, i have noticed that dropshipping is no longer listed in the prohibited businesses, is it true, i am dropshipping products but i keep inventory in us warehouses and offer fast shipping, does that make me different, and also is there any possibility that moroccans would be eligible for shopify payments accounts? 


Hi, @Medfad!

It's great to hear that you're able to offer your customers fast shipping through your US warehouses.

While Shopify Payments isn't currently available for stores in Morocco, you may be able to set it up if your business has an address in the United States. To use Shopify Payments for the US, you need to have a USD account with a physical bank in the United States (see the bank account requirements for Shopify Payments here). Otherwise, you can choose from the supported payment providers for Morocco.

It's important to review Shopify's Terms of Service and Acceptable Use Policy regardless of the business model or products you sell. If you're not sure whether your business complies, I recommend seeking legal counsel to review the terms with you.

Sophia | 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

NxnoV
New Member
2 0 0

Hey Sophia, I've seen your replies and seen that you seem to know a bit about this topic. Previously I have set up a store which after a review was taken down and i was drop shipping some jewelry rings, and I wasn't even using Shopify Payments, I was using paypal. I want to use shopify and shopify payments, its for a store that will sell fitness related items, such push up equipment, benches for fitness, muscle fitness guns etc. Is there a way i can get shopify to review my store before it goes live, because what I'm scared of is getting some sales or even a lot of sales and then I send the items and shopify puts a hold to my store and I'm in a terrible position.  

Thank you in advance

Sophia
Shopify Staff
Shopify Staff
1147 78 137

@NxnoV wrote:

Hey Sophia, I've seen your replies and seen that you seem to know a bit about this topic. Previously I have set up a store which after a review was taken down and i was drop shipping some jewelry rings, and I wasn't even using Shopify Payments, I was using paypal. I want to use shopify and shopify payments, its for a store that will sell fitness related items, such push up equipment, benches for fitness, muscle fitness guns etc. Is there a way i can get shopify to review my store before it goes live, because what I'm scared of is getting some sales or even a lot of sales and then I send the items and shopify puts a hold to my store and I'm in a terrible position.  

Thank you in advance


Hi, @NxnoV!

I appreciate the proactive approach, though there isn't a way to request a review before launch. Since store reviews can happen at any time, the best thing to do is thoroughly review the Terms of Service and Acceptable Use Policy, as well as the Shopify Payments Terms of Service for your region.

You may also find these resources helpful while you're setting up your new store:

Fitness products are always in demand, so I'm sure you'll find plenty to sell that fits within the terms linked above. Best of luck!

Sophia | 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

X7mxd
New Member
1 0 0

Hello Sophia,

im attempting to set up shopify payments for my UK store but under the business category, i cannot see anything that relates to my dropshipping store, we are selling technology products.

what can you advise we use?

 

Sophia
Shopify Staff
Shopify Staff
1147 78 137

@X7mxd wrote:

Hello Sophia,

im attempting to set up shopify payments for my UK store but under the business category, i cannot see anything that relates to my dropshipping store, we are selling technology products.

what can you advise we use?

 


Hi, @X7mxd!

 

Are you referring to the Business type section that asks whether your business is an Individual/sole proprietorship, Corporation, Nonprofit, or Partnership?

 

Screenshot%202022-06-23%207.54.19%20PM%20-%20Display%202%202022-06-23%2019-54-30

 

These options refer to how your business might be registered. Please see section B.1. of the Shopify Payments Terms of Service for more information. I recommend checking in with your local business registry to determine whether you're required to register at this stage, and if so, which type to select. Let me know if there's another section of the Shopify Payments setup that you're referring to instead. 

 

How is the rest of the store setup going so far? I've got a couple resources here that I hope will come in handy while you're prepping to launch the store:

 

Sophia | 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