How You Get Paid
At this point, everything about the drop ship process sounds easy and super cool, but the idea of how you get paid can confuse some people. While you’re aware that the profit comes from the difference between your buying price and the selling price, how will you receive the cash?
In truth, it can come from a couple of different places. If you are selling on auction sites like eBay, you can receive the money in any way that your auction accepts payment. That may be from a money order, a personal check, or a variety of other ways. If you are using your own website, however, things can get a little hairier, depending on the types of payment that you will accept.
However you decide to go about things, the most important thing is this: receive payment before you order anything. In doing so, you never have to use your own money. What other business model allows you to sell before you buy? In theory, you could start with no money and still drop ship items to make money, because you never have to buy the items yourself.
When first starting out, these little questions can seem like mountains that need to be climbed, and many potential work form homers are scared away beacuse they don’t know the answer to their problem. The truth of the matter is that, once your business starts taking off, these little complications fall by the wayside. However, it can seem like quite an obstacle for those who have never done it before.
If that is the case for you, and you’re not sure how you’re going to accept payment, then start off using only PayPal. PayPal is a safe, secure form to both send and accept payment. When you sell an item to drop ship, accept PayPal. When you buy the item from the supplier, pay with it using PayPal. In this way, you never have to see the funds, and money is simply channeled to the hands to which they belong. Furthermore, your profit will simply be the difference between PayPal transactions, and the money will add up. All major credit cards are on file with PayPal, so people will be able to use their credit card. It is also eBay’s preferred method for transactions, so most people will use it as the method of payment. Therefore, if you are unaware what you’re going to do for payment, use PayPal.
Using PayPal will simplify the process of both buying and selling, and it allows you to save time and drop ship more items. As long as your supplier accepts PayPal as a method of payment, you can use it in every step of the drop ship process and make things extremely easy. Then again, how can you find a supplier that meets your needs? For the answer, see the next section.