Dropshipping Protection

[Drazek]

I would appreciate some advice regarding how to protect myself with a contact in China.

We met over a forum. He wanted me to sell some things for him over ebay.

I agreed and it sold.

What is the best way to ensure that after I get paid for selling something on ebay.

I send him part of the money via paypal to his email address. (I am protected automatically if he doesn't ship the product to the customer) ???

Please any advice/suggestions.

Thanks.

[PayPal_Adrian]

Drazek -

PayPal always recommends obtaining control over an item before it sells.  Here's why:

If you obtain control of an item when it is sold, you can guarantee that a) the item will be shipped properly and expediently and that b) the item is as described.

When you sell an item without having it in your hands first, you have no way of knowing if a dropshipper really will send the right item out, or an authentic item out, or even an item at all.

This places you in a precarious position.  In essence, you're accepting all of the resonsibility as the seller, while having zero control over the execution of the business.

I'm additionally concerned that you met this dropshipper over a forum.  Most business arrangements are produced in a formal atmosphere, or through known mercantile channels, rather than via an informal chat area.  Have you reviewed this dropshipper with your various consumer and merchant agencies? Can you be 100% certain this person you met online really, truly is an agent for an otherwise legitimate dropshipper?

Since you've already received payment, there are a few routes you can go.  If you're not certain you want to proceed with this business venture, it would be best to process a refund to your buyer(s).  If you do choose to proceed, I wouldn't recommend forwarding the funds to the dropshipper until at least three days after you can confirm with the buyer they have received the item and are satisfied.  As you're not shipping the item and can't guarantee it's delivery or quality, it would be unlikely PayPal would be able to cover you under the terms of our Seller Protection Policy.

Stay safe,

Adrian

[Drazek]

Thank you for the information.

I have refunded the money. I don't think it was a scam, however, I don't have the money to risk the venture. And you have very clearly described the business situation that dropshipping is itself.

I wish paypal had an escrow system, so that there would be a mutual understanding between the two partners to wait until the item had been shipped and confirmed.