How do drop shipping payments work on Shopify?

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Hi there,


I've got a question related to payments and how they work.

I've just started a company and I want to use Shopify to build a drop shipping store (Ali Express).


1. This is just to confirm. I can schedule a monthly payout from Shopify and the entire amount of money is gonna be paid all at once, right?


2. For drop shipping I understand that a card is required. The question is: that card will be used every time a person is ordering something? Is there a way to use it once to extract a larger amount of money in Shopify account and use them from there?


Thank you!

Reply 1 (1)

Shopify Staff
2040 223 326

Hey @dudu0301,


Welcome to the Shopify Community and congratulations on starting a company!


To answer your first question, if you have enabled Shopify Payments at your checkout, then you can schedule a monthly payoutAfter you update your payout schedule, pending payouts are delayed until the next applicable payout date on your new schedule. If you select a recurring date for when you want to get paid, then the payout is scheduled for that day, but your bank might take additional time to process the transfer.


Note: The funds might not appear in your bank account right after they're sent. Banks typically take between 1-3 business days to process deposits to your bank account.


Secondly, in drop-shipping, a card is required for payment processing purposes. When a customer places an order on your store, their payment will be processed using the card details provided by the customer. The funds will then appear in your payout account, from which you can use them to pay the supplier for the product and cover any other expenses. Shopify does not provide a feature to extract a larger amount of money from the card and store it separately in your Shopify account for future use.


Initially, you may need to use your own funds to pay the supplier for the product (until you start receiving regular orders). Once the funds from the customer's payment are cleared and available in your account, they can be used to reimburse yourself for the payment you made to the supplier. 


I hope this clarifies your questions! Let me know if you need further assistance.

Moira | Social Care @ Shopify
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