Various payment methods to make payment to drop shippers

[dirtyPoster11]

Hey y’all, I am looking into possible payment methods for my drop shipping business. I know there are a few options, what is considered the safest?

[gamerfan]

Yes, there are a few options available when making payment to a distributor or wholesaler for items. I’ve listed the most common preferred methods of payment below:

1.) Escrow (where an unbiased 3rd party holds the funds until the conditions of a contract/agreement are met) is the preferred option for the retailer, allowing their funds to be held until their purchase is received.

2.) PayPal is another good option since it allows the retailer to make their purchase without divulging credit card information, provides security if the deal falls through and the distributor receives their payment quickly. There are other companies that provide a similar service as PayPal, but PayPal is the most well-known and the most credible.

3.) Avoid wire transfers, period. There is no guarantee that you’ll get your money back if the deal falls through. You have no legal recourse with wire transfers as it is almost the same thing as handing over cash and no ability to recall the payment once it’s been sent.

[OldSimpson24]

Yes, there are a few options available when making payment to a distributor or wholesaler for items. I’ve listed the most common preferred methods of payment below:

1.) Escrow (where an unbiased 3rd party holds the funds until the conditions of a contract/agreement are met) is the preferred option for the retailer, allowing their funds to be held until their purchase is received.

2.) PayPal is another good option since it allows the retailer to make their purchase without divulging credit card information, provides security if the deal falls through and the distributor receives their payment quickly. There are other companies that provide a similar service as PayPal, but PayPal is the most well-known and the most credible.

3.) Avoid wire transfers, period. There is no guarantee that you’ll get your money back if the deal falls through. You have no legal recourse with wire transfers as it is almost the same thing as handing over cash and no ability to recall the payment once it’s been sent.

So what about creating a legal document that basically says if the items are received then the wholesaler agrees to not do a charge back?

[gamerfan]

OldSimpson24, that is a viable option as well, although more convoluted than you will want to bother with on a regular basis. The only addendum I would include to that is a time frame for returns if the product/s are received damaged. You really ought to be able to process through PayPal or a credit card without any issue if the distributor you’re dealing with is on the up and up.

[Joshjdojohn]

You really ought to be able to offer Paying through PayPal or bank cards without any problem if the supplier you are working with is bringing you more and more contracts . . . . . . .
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