For beginner entrepreneurs, starting a Shopify Dropshipping business is an awesome way to enter the eCommerce industry. The reason? Dropshipping does not require you to manage an extensive inventory of products and services at all times. So, you can focus on improving the online store and generate more sales.
However, the main question is – How would you handle payments for the Shopify dropshipping store? Keep reading the know the answer.
About Shopify Payments
This is Shopify’s in-house payment method. It helps ease the payment process for a Shopify merchant by accepting credit card payments via the Shopify store.
Why Choose Shopify Payments?
There are 3 major advantages to using Shopify Payments for your Shopify Dropshipping store. These are:
- Integrated with Shopify to help you manage the store from one central platform.
- Offers competitive transaction fees without any monthly or setup fee.
- Shopify Payments is available in more than 15 countries.
Shopify Payments makes it easier for you to track payments for your online store.
That’s great news, isn’t it? However, there are a couple of conditions you have to take care of before setting up shop. Let’s see what these are.
Shopify Payment Conditions
To be eligible for a Shopify Payment account, you need to fulfill certain conditions. These include:
- Be a Shopify merchant
- Should be living in the USA, Canada, Australia, New Zealand, UK, Ireland, or Germany
- Use Shopify as the preferred eCommerce platform
- Possess proof of home address document
- Match Shopify’s minimum age requirements
Besides this, there is a small fee you have to pay as a Shopify Dropshipping merchant. Please keep reading to know what it is.
For Shopify Payments, the transaction fee is 0.15% for the first $2000 of sales. Later, it is 0.05% for any sale above $2000.
For Non-Shopify payment gateways, A flat rate fee of 0.30% for every transaction.
What About the Shopify Payment Payouts?
After you set up the payment account, Shopify Payments payouts happen after every 14 days.
Now, let us take a look at how you can set up a Shopify Payment account.
Step-By-Step Process to Setup Shopify Payments Account
- Firstly, you need to set up a Shopify account and Sign in.
- Go to the Shopify Payments section in the admin panel.
- Click on the Settings option and go to the Payment section.
- The rest of the options are set to default.
- Click on the Save option.
Note: Do not make any changes in Step 4 unless you want to get paid weekly or daily. Also, for step 3, consult with a professional accountant to enter tax-related information. It depends on the country you reside.
Congratulations on setting up the account! Now, there are a couple of steps you can take to manage payments with ease.
Best Practices to Manage Shopify Payment
Given below are 3 methods for you to manage Shopify Payments with ease:
- Transparency Regarding Payment Fees and Methods
Keep the customers ensured about your Shopify Dropshipping store payment methods and fees. Include this information in the store’s checkout process.
- Safeguard Customer Information
Ensure your Shopify store uses a secure payment processing gateway to safeguard the customer’s information. You should include SSL encryption and comply with PCI and DSS requirements.
- Monitory Payment Processing
Make sure there are no problems with the payment processing method. Address any issues or discrepancies immediately.
What if Shopify Payments are Not Available in My Country?
Don’t worry! Shopify Payments is not the only payment gateway available for your Shopify Dropshipping store. If it is not available in your country of residence, you can choose from one of the Shopify-supported payment gateways including:
- Apple Pay
- Google Pay
However, should you decide to choose an unknown 3rd-party payment method, there are some features you should look for.
Features to Consider While Choosing a 3rd Party Payment Method
Given below are 3 major features you should look for while searching for a 3rd-party payment method for your Shopify Dropshipping store.
- Customer Experience
The payment method should not impact the customer’s shopping experience. It should not be too complicated else the customer might abandon their shopping midway.
- Geographical Location
Some Shopify Payment methods work only in certain countries. Make sure the payment method matches the geographical location of your customers.
- Fraud Detection
With online scams and frauds on the rise, securing the customer’s financial data is of utmost importance. Choose a payment method that safeguards customer data against online financial fraud.
Shopify Dropshipping offers you a one-of-a-kind platform to launch an online store without having to manage an extensive inventory. Choose the right payment gateway to make it safer for the customers to shop, and your online store to grow.
Are you facing issues with uploading photos of products on your Shopify store? Check out our extensive guide on how to upload images to Shopify