Does Shopify Payments Allow Dropshipping? Discussion

I was curious if dropshippers have had their Shopify accounts shut down due to dropshipping. The Strip TOS section under “prohibited business” clearly states that they won’t process Dropshipper payments.

Shopify Payments TOS has exactly the same policy as Shopify Payments, but they leave out dropshipping.

I am curious if Stripe has a special relationship and if so, do they allow it? Or if Shopify leaves this out inadvertently because dropshippers are a lot of their customers and it would cause them to lose users.

Although I am not certain if this is allowed, I will drop links in the post if someone can’t find them on their own.

Another thing I believe this shows is that if you dropship properly nobody will know what you are doing. The proper way does not mean Ali Express, DHGate Walmart, Amazon, or DHGate. Dropshipping correctly means that your name and contact information will appear on your invoice, shipping label, and all marketing materials.

I was just curious to know if any dropshipper has had their store shut down.

That’s what I’m trying here to emphasize. It’s a big business to make money from people who want to start businesses. There are many programs, courses, and softwares that can help you do this. Shopify is an online marketplace, but they realize that there are far fewer serious ecommerce sellers than Wantrepreneurs who want to open a store. Dropshippers can make a lot of money for their bottom line. Although dropshippers don’t usually last more than 60 days, that’s still enough time to pay $29 fees for Shopify.

It is important to distinguish Shopify from Shopify Payments, also known as Stripe. Shopify is a website builder. They are very flexible with their policies. As long as you are not selling marijuana or guns, they won’t be able to issue any issues. Shopify Payments, on the other side, is very strict about what and how you sell it. Some products have higher chargebacks, so they won’t let them be sold. Sometimes, even selling expensive or high-ticket items is not something they want to do. Dropshipping is something Shopify Payments cares about because dropshipping has higher rates of chargebacks and returns than average businesses. This can be a risk for their company as well as their processing relationships.

I agree. Dropshipping is a fulfillment method. Walmart, Target and Bed Bath and Beyond dropship. Dropshipping is a fulfillment method, however, 99% of dropshippers are also talking about Ali Express dropshipping. It almost seems like they go hand in hand. It is likely that less than 5% of dropshippers actually make contact with companies and establish a relationship.

This is a fantastic point. However, I believe we will see more people leave AliExpress or Oberlo. At least for those who want to scale up and build a long-term business. It’s ironic that Shopify TOS does not allow high-risk business, but they encourage it with Oberlo

Shopify might answer this question. I believe it would be something like big brands using our storefront because it is user-friendly, flexible, and offers a clean, fast, well functioning site.

Yes, we market to dropshippers. Stripe may have issues with high-risk customers. However, people can use any payment processor that connects to our gateway.

This is just my guess.

It’s false. My Payments account is being held for dropshipping. This gives me a BS excuse that I need to be an “authorized seller”.

They are holding $200 of my money, until I “prove I’m authorized” to resell Disney Products.

Worse, the money they have is actually from an order for generic electronics that was cancelled. They stole my money to refund the order and are now holding it hostage.

It is completely true. They blocked your account due to the fact that you were selling Disney products without authorization, and not because of dropshipping.

Dropshipping is a shipping method and not a business model. They don’t care how you ship your product to customers, but they do care that it is legal.

Except when it is related to tickets for the theme parks, there is no such thing “Disney Authorized Reseller”.

The customer purchases from a retailer, while the distributor buys directly from the manufacturer.

You can resell Elsa dolls you have purchased at a garage sale without any connection to the Walt Disney Company.

I can agree to Shopify Payments if they ask me to. Even if it’s not something I agree with, I will comply.

The money they have is not related to Disney products or any other licensed material. It was an order for generic drones that was cancelled, and the money had to be refunded.

They took my money from my credit card to pay the refund and now they are keeping the $200 in limbo.

Shopify Payments uses Stripe. The TOS for Stripe states that dropshipping is considered high-risk and they won’t allow it.

So my question is, does SHopify have an agreement with Stripe that allows dropshipping? Or are they deliberately leaving this part out of their TOS.

Stripe claims dropshipping is high-risk and shopify payments are at the top of that high risk category. While they don’t explicitly call dropshipping out, it does mention…

“Any business that we believe is at high financial risk or has potential legal liability or infringes bank or card network policies.”

Dropshipping properly is fine, but if you dropship from Ali Express and get chargebacks or returns due to shipping times it could lead to your account being shut down quickly.

They will ban you from their portal if you sell a prohibited product. Although they won’t ban you from dropshipping, they will most likely place a hold on your payouts because dropshipping businesses have a higher chance of being charged back.