How to use the PayPal payment gateway in e-commerce?

The PayPal payment gateway is nowadays one of the most used payment methods in e-commerce. It is easy to install and very convenient.
If you have an online store and PayPal is not one of your payment methods, you are probably losing money. 

Here is a handy guide in which you will learn how to install PayPal payment gateway on a dropshipping store. Whether your store is on Shopify or WooCommerce, this article will be helpful. 

Prerequisites

Although PayPal is compatible with most e-commerce hosting platforms, it is still important to check certain prerequisites before thinking about installing it on your store. 

First of all, you need a professional PayPal account. This is the only type of account that you can set up on a sales store. If you already have a personal account, it is possible to switch directly to a business account without changing your account.
However, if you don't have a PayPal account yet, you will have to create one. 

In this article, we will also see how to create a PayPal account.

Like all other online payment methods, PayPal is not available in all countries. It is therefore important to check that the payment gateway is available in the country in which you want to sell your products. Otherwise, your buyers will not be able to pay you.
If you feel that you are not in compliance with all of these requirements, you can opt for alternatives to PayPal. 

Why install PayPal on your store?

When we talk about PayPal, we are actually talking about the best known and one of the most used payment methods on the Internet. The payment gateway is also known for its advanced security system and fraud detection algorithms.
All this has allowed PayPal to have a solid reputation among its users. In fact, just the PayPal logo on your dropshipping store already inspires confidence in your buyers and encourages them to take action, as they feel safe. 

In addition, with PayPal, payments are faster and buyers are no longer required to enter lengthy credit card information that can complicate payments. All they need is an email address and a password to make a payment. 

Basically, PayPal allows you to significantly increase your conversion rate. 

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How do I open a PayPal Pro account?

In order to install PayPal on your store and use it, you must first have a PayPal Pro account.
The PayPal Pro account is only for businesses and it is the only way to receive payments from your customers. Here are the steps to follow to create a PayPal Pro account. 

Go to the PayPal and create an account by selecting the business account. You will be asked for personal and business information to verify the authenticity of your business. 

After creating your account, you must now confirm it by linking a bank account to which you can transfer money.
To do this, click on "Make and Accept Payments" in the top menu and select "Bank Accounts and Cards".
Then click on "Register New Bank Account" and enter your bank account information.
After all the usual verifications, your PayPal Pro account will be active and you will be able to start using it on your online store. 

Let's find out how to install PayPal on a Shopify store.

How do I install PayPal on Shopify?

Once you have your PayPal account activated and ready to use, you can now connect it to your account Shopify. This can be done in a few clicks. 

But before you start the installation process, make sure that the information such as the country of your store is the same as that of your PayPal account. This will help you avoid blockages.
Also make sure to check the availability of PayPal in the countries where you want to sell your products, otherwise even though the payment gateway is installed on your store, your customers will not be able to use it due to geographical restrictions. 

Go to your Shopify store and go to the payment settings. All you have to do is click on the "Enable PayPal Express Checkout" button to activate PayPal on your store.
You will be redirected to the PayPal page where you will be prompted to log in with your credentials. Once the process is complete, your account is automatically activated and your customers can start paying you from their PayPal account.

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How do I install PayPal on WooCommerce?

The method for activating PayPal on WooCommerce is virtually the same as the one used to activate it on Shopify.
Unlike Stripe where you'll need a special extension before you can install PayPal on WooCommerce, you won't need an extension here. In fact, PayPal is built right into WordPress. You just need to activate it to be able to use it on your store.

To do this, you need to go to the Settings of your store and go to the "Payment" tab. At the bottom, you will see "PayPal Standard - PayPal". Activate the button in the box and then click on the configuration on the right. 

You will now land on a new tab. Activate the "Enable PayPal Standard" box. Fill in the "Title" and "Description" boxes. These will be visible to your buyers. So make sure you put a call to action that will encourage them to pay with their PayPal account. 

Sample description: Pay safely with your PayPal account

Then enter the email address of your PayPal account. Once you've done all that, your account is now linked to your store and you can start receiving payments.
There are also several options at the bottom that allow you to customize your payment process to your preferences. Feel free to test to find out what works best for you. 

Remember, the simpler the payment process, the easier it is for your users to pay. So put your customers at the center of your adjustments. 

Tips to avoid blockages on PayPal

Although PayPal is a very interesting payment gateway in dropshipping, it sometimes turns into an ordeal for Internet merchants, especially dropshippers. 

As you know, dropshipping is considered a high-risk activity by several payment processors, including PayPal. This doesn't mean that you can't use PayPal on your Dropshipping store, but that you need to be careful about a number of conditions to avoid getting banned.
In fact, in dropshipping, you are more exposed to PayPal disputes. And the more disputes you have, the more likely you are to be banned.
A dispute is a process that a customer initiates with PayPal to indicate that they have not received their order or that they are not satisfied with the quality of the product.

Here are a few tips that can help you avoid blockages on PayPal.

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Be up to date in terms of administrative documents

When you start receiving large orders on your store, you will inevitably receive a verification request from PayPal in which you will be asked to provide information about your business.
Since most dropshippers don't have a legal business, they end up having their account blocked due to lack of supporting documents. 

So make sure you create a legal business and have all the business documents in place before you start receiving orders on your dropshipping store.
To further enhance the reliability of your business, we recommend using a professional email address with your domain name. You can find one with Shopify with your store's domain name.

Propose order tracking numbers

One of the main reasons for disputes is the lack of tracking numbers for orders. It is mandatory that you have tracking numbers for all the products you ship. This will give you the confidence to your customers so that they can track their order. You can also use this order tracking number to defend yourself to PayPal in case of a dispute. 

If your supplier is on AliExpress, offer to ship the products via Aliexpress Standard Shipping. At least you are sure that you have a reliable tracking number to defend yourself with in case of a dispute. 

Also remember that for each order, you must add the tracking number to PayPal. This is what sends the signal to PayPal that you have actually shipped the customer's order.
You can either add the numbers manually in your PayPal account or use third-party applications like Proveway and Simple Seller Protection.

Offer a quality customer service

The quality of your customer service shows the seriousness of your company. Most drosphippers only sell and don't care about after sales service. You need to have a very active customer service department that responds appropriately to your customers' requests. 

Since deliveries are usually lengthy, you need to set up an email campaign that will be sent at different stages of the process. 

Example of a post-order email campaign (Information in bold is very important)

After the order: After the order is placed, you must immediately send a confirmation email to your customer and notify them that the order has been received and will be shipped. You must also include, in this email, the overview of his order.
1 or 2 days after the order: No more than 2 days after the order, you must send another email to your customer and notify them that their order has been packaged well and is ready to leave the warehouse for shipping.
3 to 4 days after the order: this email will be to confirm to the customer that the shipment has been successfully completed. In this email, you must include a tracking number that will allow your customer to follow the entire shipping process.
7 to 10 days after the order: at this stage, you must send another email to your customer to reassure him that his order is in progress and that it will be delivered in less than a week. 

By following an email sequence like this one, you will have very few returns from your customers, because they will be reassured of the seriousness of your company.

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Conclusion

This is how you can use the PayPal payment gateway in your drosphiping store.

First of all, you must have a professional account and depending on the hosting platform of your store, you install the payment gateway on your store. Do not forget to be very attentive to the needs of your customers to avoid disputes. 

Frequently Asked Questions

How can I avoid PayPay blockages when dropshipping?

Here are 3 tips that will help you avoid PayPal blockages

• Be up to date in terms of administrative documents
• Propose order tracking numbers
• Offer a quality customer service

What is the difference between a PayPal Business account and a PayPal Standard account

The standard PayPal account is for personal use. You can therefore use an account, your standard account, to make financial transactions (send or receive money from a relative, make online payments...). 

On the other hand, a PayPal business account is an account that is intended for businesses. You can use this type of account to receive payments from your customers on your online store. This type of account offers several advantages.