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What Are The Ways You Pay A Dropshipper, And How Long Does It Take From When You Get Paid, To When You Get Billed?

A great two part dropshipping question that I was asked that I think has some confusion with it.  I am just going to break it up and go from there;

What are the ways you pay a dropshipper?  Each dropshipper is different in what they prefer, but the norm is to use a credit card they bill when orders are made.  How it works with all of my businesses, is I have my business credit card (cash back credit card remember I posted already about this) on file and whenever someone makes an order on my site, I log into my dropshipping account and place the order.  They usually charge my credit card on a NET-30, which means however many orders I have made in 30 days I will get billed all at once at the end of the 30 days.  There are some suppliers that will charge you immediately after every order is placed.  You just need to talk with your supplier and see what their method of operation is.

How long does it take from when you get paid to when you get billed?  You get paid right when the order is processed. If you have set up your merchant account and dropshipping accounts correctly, you do not wait to get paid.  When someone goes to your site and places and order, the money goes directly through the merchant account into your bank account.  This is where I think the confusion may have been with the question in thinking the dropshipper was going to be the one paying you.  If you are working with a legitimate dropshipper you will not ever have them pay you.  That is not how true dropshipping works. 

Usually at the end of the month if I have done 30k in sales, and my supplier charges me at the end I have all of that money in the bank for the full month. Now remember, you have to pay the supplier every month if set up on a Net-30, and its not all yours, but if you are even making 50% then you are left with 15k which is not a bad month!

Hopefully this gives you a better idea about setting up the payment options with suppliers.  If you are new to dropshipping and want to sell products online, The Shipper is offering a FREE 7 day trial membership with full access.
Published Thursday, August 16, 2007 4:29 PM by admin

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