Dropshipping payment processing is an integral part of a dropshipping business.

There are many benefits for an entrepreneur or small business when starting a dropshipping business, including:

• The ability to work from varying locations
• Low overhead costs
• Low startup costs
• No inventory to warehouse
• Potential for large product variety
• Adaptability for growth or downsizing

With a dropshipping business, you are not required to stock and manage your own inventory. Instead, choose from an array of products to stock in your eCommerce store and earn a percentage of each total sale whenever a product is purchased. is not required to manage or replenish inventory. As a dropshipping business, take advantage of having access to direct manufacturers or warehouses that stock your current products. Manufacturers and warehouses are responsible for shipping and tracking each item you sell on your website, making it much easier for you to handle the marketing and sale of the products rather than fulfillment.

Once you have established your business and brand, utilize automation to keep generating sales. Business owners can use automation to generate sales, keep track of inventory, and provide you with in-depth and comprehensive data reports.

One common issue that many upstart or even established dropshippers can have, though, is finding a reliable payment processor for their business - that’s where we come in. We’ve focused on our partnerships with dropshipping businesses for 25 years and will continue to expand that area of our business for the foreseeable future, regardless of what you’re dropshipping.

Although dropshipping is a completely legitimate business model, there are occasions when it can be considered a high-risk business. A few reasons why dropshipping may be high-risk are:

• Dropshippers outsource order fulfillment responsibilities and have to rely on other companies to actually ship the order. That short removal of responsibility is great from a business management standpoint but can result in fulfillment errors that are harder to manage.
• With numerous parties involved, there’s more margin for error.
• It’s a competitive industry with a few giants like Amazon dominating but many other businesses are able to jump in due to the low barrier to entry.
• Returns are complicated since fulfillment is handled by a 3rd party.
• Payment disputes are difficult to disprove. For example, if a customer claims they never received a product, or that it arrived damaged, it’s more difficult for a dropshipper to fight a chargeback claim because they were not responsible for the order fulfillment.
• Transactions generally occur online, where fraud and chargebacks are most prevalent.

There’s a lot to consider when starting a dropshipping business and choosing a merchant payment processor should be at the top of that list. But when it comes to choosing a payment processor for your business, what are the most important considerations? Here are a few:

• Advanced chargeback management tools: Chargebacks are more than common with a dropshipping business and a business owner will need to put a lot of time and effort into handling chargebacks. You’ll need a tool that walks you through the entire chargeback process and gives you options to ensure you’re not losing money in the process.
• Quick Payments and Deposits: Rather than waiting days for your payments, receive payments and deposits much quicker.
• Software Integration Options: You need the ability to accept and return payments to and from as many software platforms as possible to keep up with the “Amazons” of the world.
• Pricing: Look for flexible payment options that don’t lock you down into a long-term commitment or contract.
• Account Representation: Dealing with fraud and chargebacks often requires the assistance of an account representative from your payment processor. It’s important to make sure your processor has account representatives available to you that personally know your business. That 1-on-1 connection can help you easily manage your business as you grow.

The possibilities are nearly endless in the continuity industry because of the ability to monetize almost anything with a dropshipping business model. And because of the ease of entry to the industry, there’s a ton of opportunity to grow a business whether you’re an entrepreneur or an established business. Getting the payment processing in order is a small but massively important component to a business in this industry; don’t settle for less in this part of the process.