Determine a payment method for your dropshipping supplier via Shopify

Dropshipping is an activity that requires a minimum of organisation in order for everything to run smoothly. The question of payments to the supplier is one of those that comes up. Depending on your preferences, you have a wide variety of possibilities to do this well.

You are each paid for each sale

For this solution, payments will be received directly each time the user confirms his purchase. You will receive several small payments daily, as well as your dropshipping supplier if your business is successful. The concern with this alternative is that you will have to pay a large amount in fees. This option may still be interesting depending on the price at which you sell your product.

The more valuable it is, the higher the margin, the less the costs will affect the earnings. In terms of practicality, this method requires the least amount of effort on a daily basis. It is possible to fully automate the payment of your dropshipping supplier and yourself on Shopify online shops. To do this, you just need to install a plugin that allows you to do this without difficulty. After that, your daily task will be to check that the plugin in question is doing its job.

You can never be sure of a computer bug, and in the case of an online shop, this would be problematic. It is also important to keep a daily account, to minimise the amount of periodic work for this action. You are indeed obliged to pay a tax, as this is a paid activity.

You pay it periodically

The other option is to collect the payments from you and then pay your supplier on a monthly basis. This alternative has the advantage of keeping the costs of payments to a minimum. Indeed, these are largely limited, which means that the expenses to be made will be much lower. Regarding how to pay your dropshipping supplier in terms of period, it can be once a week, every fortnight or every month.

With this method of payment, it is essential for you that everything is legally settled. This means that you must have a proper contract that protects the rights of both parties properly. This is especially important for the supplier, but it is also important for you. The terms of the contract should be reviewed by legal experts to ensure that your rights are respected.

It is still important to set up your Shopify dropshipping site so that the supplier is notified directly when orders need to be processed. You can set up your site so that they receive an email alert for each order. This will allow them to start the process of preparing the products and delivering them.

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How to pay the dropshipping supplier not present on Amazon and Aliexpress

Sites such as Amazon, Aliexpress and others will be particularly useful for suppliers in countries such as China. These are interesting solutions for the latter:

• Direct contact with customers
• The possibility of putting products from these sites into dropshippingshops
• Greater ease of automation

In case your suppliers do not use such platforms, payment management will be done differently. In order to know how the dropshipping supplier is paid, you have to look at other solutions. Here, it may be a question of creating tools unique to your situation, in order to make it possible to make such a payment.

You can start by looking for a plugin that has the specifications you need for your site. If you can't find one, you can hire a developer to create a plugin for you. It is possible to find freelancers who are able to create a quality tool for you. The rates for such a service vary, but even for a high price, the sales you make will easily make up for it.

Ensuring payment security

Once you have found common ground with your supplier, it is time to turn to the payments themselves. The security aspect must be treated with the utmost care, as Internet users will be using sensitive banking information. Protecting this data is your duty.

• Encrypt user data

The use of encryption is an obligation for this type of site. This prevents ill-intentioned people from capturing the data being exchanged. Current encryption solutions are sufficiently advanced to ensure that the money of Internet users is well protected. The only thing is to put the necessary tools in place.

• On-site or off-site payment

You will also have to decide whether to offer payment directly on your site or not. Depending on the service you use, this may be more or less risky for users. Find out as much as you can about the implications of each alternative before making a permanent decision.

Conclusion

There are several factors that come into play when it comes to the payment method to be used. By discussing it properly with your supplier, you will quickly arrive at a solution that satisfies both sides. Minea is your best ally for the success of your dropshipping site.