Hey guys, going to be starting a new little series where we make some shorter videos on topics like eCommerce, Entrepreneurship and Cryptocurrencies but instead of me rambling for 30 minutes about everything under the sun we're going to be making shorter videos addressing specific questions. In today's video we're answering a question from DerrickTV about dropshipping. Derrick wanted to know if you can use the customers money to buy the item that your shipping to the customer. One thing I'd like to be really clear on, with dropshipping that's exactly what we're doing, however something I want to state specifically about this is that sometimes when accepting Paypal as the payment method and when you're a new user or new seller using Paypal they will hold your money either for 21 days, or until the buyer has left positive feedback, or confirmed tracking shows the item has been delivered 3 days prior in which case Paypal will release the money for you. The reason I wanted to mention this is if you are selling an item for $40, that item costs you $20 to buy, you will need $20 to initially purchase that item and ship it to the customer. If you don't have $20 to front for the purchase you can't ship the item and as a new seller that money won't be released to you. I've talked to sellers who have been excited to make sales and then had to refund those sales because they didn't have the money to make the purchase for their dropship customer. d Just something to be aware of.
Hey guys, going to be starting a new little series where we make some shorter videos on topics like eCommerce, Entrepreneurship and Cryptocurrencies but instead of me rambling for 30 minutes about everything under the sun we're going to be making shorter videos addressing specific questions. In today's video we're answering a question from DerrickTV about dropshipping. Derrick wanted to know if you can use the customers money to buy the item that your shipping to the customer. One thing I'd like to be really clear on, with dropshipping that's exactly what we're doing, however something I want to state specifically about this is that sometimes when accepting Paypal as the payment method and when you're a new user or new seller using Paypal they will hold your money either for 21 days, or until the buyer has left positive feedback, or confirmed tracking shows the item has been delivered 3 days prior in which case Paypal will release the money for you. The reason I wanted to mention this is if you are selling an item for $40, that item costs you $20 to buy, you will need $20 to initially purchase that item and ship it to the customer. If you don't have $20 to front for the purchase you can't ship the item and as a new seller that money won't be released to you. I've talked to sellers who have been excited to make sales and then had to refund those sales because they didn't have the money to make the purchase for their dropship customer. d Just something to be aware of.