If you are about to set up a dropshipping online shop or are planning to create a dropshipping store, it is important that you think about the payment providers that you want to offer your customers. Your customers have to be able to pay for the products somehow.
PayPal is of course a very well-known payment provider for online shops. Of course, PayPal also enjoys a high level of trust among customers who shop online.
If customers want to shop in an online shop and see PayPal as a payment method, this naturally creates enormous trust. Customers know that they are very well secured with PayPal and can get their money back quickly and easily in the event of complications.
You can create a dropshipping online shop without offering PayPal payments! You can integrate various other payment service providers or payment methods into your online shop to enable payment for the products you offer.
Here’s the quick answer to the question: Can I Dropship Without PayPal?
Yes, it is possible to run a dropshipping online shop without PayPal!
Problems with PayPal integration
In some countries, it is not possible to integrate PayPal into an online shop. Therefore, you may have to look around for alternatives to PayPal.
Especially when it comes to dropshipping, it can become a problem if you offer PayPal as a payment method. For example, if you run a dropshipping store and dropship the products from China, longer delivery times are more common.
It is therefore not uncommon for customers to file a complaint with PayPal after just a few days and demand their money back. Many customers are used to extremely fast delivery times. Of course, this extremely fast delivery is almost impossible with dropshipping from China.
PayPal is very customer-centric. So you will have enormous problems if customers file a complaint with PayPal after a few days. PayPal will then refund the customer and you will be left with the cost since you paid the money in advance to the merchant in China.
Possible problems with PayPal when dropshipping:
- Customers complain about long delivery times at PayPal
- PayPal almost always agrees with the buyer
- PayPal immediately refunds the money to the buyer
- Your PayPal account will be blocked quickly
- With PayPal, your money can be retained for 180 days
Advantages of integrating PayPal Payments into a dropshipping online shop:
- PayPal payment option builds trust
- Your customer is optimally secured
As you can see, connecting PayPal to an online shop always has advantages and disadvantages. However, you do not necessarily have to integrate PayPal into your dropshipping store in order to receive payments. Below I would like to show you the best alternatives to PayPal for a dropshipping store.
The best alternatives to PayPal for a dropshipping store
A payment provider handles the entire payment process for the customer as a service. There are various processing fees for this payment processing service. Some providers charge a basic fee and a certain percentage, while others retain a fee depending on the turnover. Depending on the type and amount of sales, we may incur different fees for payment transactions.
Here are the most popular payment processor alternatives to PayPal:
Amazon Pay / Amazon Payments
The payment option from Amazon, Amazon Pay, simplifies payment processing for the customer. Since it is assumed today that almost everyone has an Amazon customer account, you can also use the Amazon account to register for payment in your online shop. All important noted payment and shipping information is retrieved directly from Amazon, the customer does not have to enter it again.
The classic payment methods that Amazon uses are now also displayed in your web shop, i.e. payment by credit card (Visa, MasterCard).
Pricing: Percentage of the transaction and a fixed base fee for that transaction.
Pros:
- No monthly fee
- Simplified login for customers
Cons:
- No installment payments are possible
- Amazon receives customer data
>>Get more info about Amazon Pay<<
Skrill
The prepaid payment version of Skrill. Similar to phone cards, credit is booked to your Skrill account (credit card). This credit can be credited to your Skrill account by credit card or bank transfer, and then you can use it to pay at a Skrill partner. Skrill uses a standard credit check to protect its merchants and therefore also gives a payment guarantee.
Price: Depending on the turnover, a fee of at least 1% will be charged.
Pros:
- Payment guarantee/credit check
- Payment also possible with cryptocurrency
- No setup fee/monthly fee
Cons:
- High chargeback fees
Stripe Payments
The payment provider Stripe Payments offers you the possibility to accept and send payments worldwide via your website or app. The tool is suitable for companies of all sizes and especially for retailers who are active both online and in the stationary area. Stripe Payments offers various integration options: Stripe Checkout dynamically adapts to the devices and location of the users and ensures a locally relevant shopping experience, which helps you to increase the conversion rate. Stripe Elements, on the other hand, are ready-to-use UI components that you can use to design your own payment form on your website. In addition, you can share complete payment pages with your customers via a link, create individually customizable invoices and accept payments via the app.
Pros:
- Easy integration into most online shops
- High acceptance by customers
- Almost all credit and debit cards are accepted
Cons:
- High costs for payment processing
Here you can find more information about Stripe
Apple Pay
Apple has also been using Apple Pay as a payment service provider for a number of years, allowing you to make contactless payments in local shops with your iPhone or Apple Watch. On the other hand, you can also pay with Apple Pay via the Safari browser or in apps with Apple Pay. The principle is simple: as a customer, you store your bank or credit card on your device. The card number is not saved on the servers or on the device used. If you as a retailer would like to offer Apple Pay as a payment option, you must integrate the software into your shop system. You can use the interfaces offered by Apple for this or you can integrate Apple Pay via an intermediate payment provider such as Stripe.
Apple Pay functions and features
Contactless payments in stores: With Apple Pay on an iPhone or an Apple Watch you can pay in brick-and-mortar stores without touching buttons or cash.
Payment in apps: In some apps you can pay with just one click via Apple Pay without filling out credit or debit card information.
Payment on the web: With the Safari browser on iPhones, iPads or Macs you can pay with Apple Pay without filling out any data or creating an account. On devices with Touch ID, you can even pay with just one touch.
More functions:
- Payment by Face ID and Touch ID
- Bank cards in Apple Wallet
Apple Pay costs
Apple Pay is not a separate payment provider per se, but merely a customer interface that converts the smartphone into a contactless credit card. Therefore, there are no additional costs for customers or retailers. If you, as a retailer, want to integrate Apple Pay into your online shop, you pay the fees charged by the respective payment provider.
Conclusion
As you can see, you don’t necessarily need PayPal on your dropshipping online shop. There is a large selection of other payment service providers that you can integrate into your shop.
Of course, PayPal offers many advantages for your potential customers. PayPal can also create a lot of trust in an online shop.
However, you can easily use other payment service providers. Other payment service providers are now also very well established.
Most shop systems offer easy integration of different payment solutions.
