Can I use Paypal for my dropship business

[Ferdous-m]

Hello, My business was registered in UAE and Paypal account was opened using UAE business.

I have a good connection with a Beds and Mattress manufacturer in the UK with whom we have reached to an agreement that they will dropship on behalf of us. They will also be the return address if customer wants to return items back, we are providing 60 day easy return policy. I built a shopify website (and trying to build a bedding and mattress brand), Once I receive orders from customers, the order will automatically be placed into manufacturer's order system via API. Once items are shipped, then tracking number will also be exported into Shopify automatically and customer will get notification. I want to use Paypal as a Payment processor for my shopify website. My question to you is "based on my description, am I allowed to perform such dropship business" , do Paypal allow such business model . I want to fully comply with PayPal rules and terms of services. Please kindly advise if Paypal is OK with the business model I described . Please also note that I have registered my Business has VAT registered in UK HMRC , also appointed an accountant to process our VAT.

Regards

Ferdous

[sharpiemarker]

@Ferdous-m 

The concern with dropshipping is knowing that your dropship partner ships ‘as described merchandise’ and packs the products well for transit so items aren’t arriving damage. Another huge concern is you’ll need some capital on hand to buy the inventory and shipping/handling in the beginning as PayPal will subject your payments to 21 day holds once you exceed your monthly immediate release amount that all accounts have for risk purposes. Bedding/mattresses can be pretty pricey and eat up your immediate release amount pretty quickly. So you may need to start small and slowly increase items in your store so you are not biting off more than you can chew (basically having sudden spike in high volume payments). Of course, there are tasks you can do to get your payments released sooner, like uploading tracking info into PayPal too besides Shopify. PayPal will release payments within one day of confirmed delivery by their system.

Contact PayPal Sales Team for further assistance to determine if your business model is a right fit with PayPal.

[Ferdous-m]

HI  sharpiemarker

Thank you for responding my question. Considering the all the post sale matters are handled professionally, I am not violating any paypal policies by doing dropship transactions. As for the fundings, I gathered 5K GBP to start the dropship business.I also paid 5K to the Manufacturer as a security token. So I am all set to go. Now I need to make sure that i can use Paypal as a payment processor for my business. 

So you per your advise, Paypal is OK with my dropshipping business model, ( Please note that Paypal account / business is in UAE , customers are from UK ) , please kindly advise