PayPal is one of the most popular payment gateways that eCommerce businesses use including those into dropshipping. By registering a debit card or credit card in PayPal, one can accept payments, send money, and pay for products and services from anywhere in the world. As a drop shipper, you might think it more convenient to use PayPal to pay AliExpress dropshipping suppliers especially if you’ll be accepting PayPal payments from your customers but, is it feasible or not?
There are many ways you can pay dropshipping suppliers in AliExpress however, PayPal is not automatically among its available payment options. Since PayPal separated from Aliexpress after a year of partnership in August 2011, there’s no update about them getting back to partnering again. So if you are thinking about using PayPal in paying products from AliExpress dropshipping suppliers, you will have to check if they have a PayPal logo on their product detail page. To offer this option, the sellers should enable PayPal in their store.
Based on their website, the countries supported by AliExpress at the moment to use PayPal are only:
United Arab Emirates
Credit Cards and Debit Cards
Western UnionMercado Pago
But I’m counting on the PayPal payments that I received from customers. How do I pay suppliers then?
Using customer payments via PayPal is not reliable because of the possible delay in crediting the amount to your account. If you receive an order via PayPal Express Checkout on Shopify there’s a possibility that the customer will pay with an eCheck. It will take PayPal as long as 5 business days to verify an eCheck and the result can be unsuccessful due to any of the following reasons:
- PayPal deemed the eCheck as suspicious and will remain unverified.
- The customer has an insufficient fund in his bank account.
- You set your PayPal account to refuse eChecks.
Although the concerned customer can still push the order to proceed by using other payment options like credit cards, using PayPal for paying your products is no longer possible. If you’re at the beginning stage of your dropshipping business, it would be smart to allocate a small working capital in your credit card that you can use to place orders to AliExpress dropshipping suppliers. When you already raised a good revenue reserve from your profits then you can use them instead of your funds.
I don’t have a credit card, what should I use instead?
If you’re not eligible to get a credit card due to your age or low credit score, you can make use of debit cards instead. AliExpress accepts debit cards issued by American Express, Visa, Maestro, and Mastercard.
Is PayPal still a feasible payment option for AliExpress suppliers?
As discussed earlier in the article, yes, it is still feasible. However, there are several limitations that you have to contend with if you pursue PayPal.
- You’ll be limited to a few suppliers who choose to accept PayPal payments.
- You’ll not be covered by AliExpress Buyer Protection.
- You’ll be charged by AliExpress a fee of US $7.40 if you use PayPal for paying products.
AliExpress offers the buyer protection service to buyers who will use its accepted PayPal alternatives for payment. The purchase protection is automatically activated when you purchase anything from the AliExpress suppliers. The benefits include:
Privacy Protection. It will keep all your personal data, financial information, and other important information safe and secure.
Payment Protection. AliExpress will hold your payment on Escrow which will only be released to the supplier when you express satisfaction with the delivered products. In case the transaction with supplier goes wrong, you will not lose your fund.
Delivery Protection. The delivery of purchased products is guaranteed because you will only release the payment on Escrow once the goods are safely delivered. You also have the option to dispute to ask for a refund in case the supplier did not ship the right product.
Guaranteed Genuine. It guarantees that you’ll receive the exact product described in the supplier’s product page.
Refund Protection. You are guaranteed a full refund if you received the wrong product, damaged product, or anything that will likely happen during transit of the products to your shipping address.
Using PayPal to buy goods from AliExpress dropshipping suppliers though still feasible, may not be a good option for you. It will not only limit your access to winning products, but you’ll also have to sell with a higher price due to the additional fee that AliExpress charge for PayPal payments. Also, your purchases will not be protected as AliExpress does not extend the service to products bought through PayPal. If you want to pursue dropshipping products from AliExpress, use only the accepted payment methods.