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Paying suppliers each month and PayPal
 

I've changed what I was selling many times over the past several months, so I haven't stuck with any supplier for a good amount of time yet. But now I've found 2 (one is in the UK and another in China) and I have been thinking on how I'm going to pay every month.

I've been thinking about that, because it would be thousands of dollars I'd be paying every month to them. They currently accept PayPal from me, for the small orders I've made first.

So once I start making some bigger orders, could PayPal see any reg flags in me sending such large amounts every month? ($2k-$6k) Or would it be more of a worry for my supplier receiving it? Would you suggest I'm better off sending smaller payments in intervals?



Of course I trust my supplier, however I'm not so sure about doing bank-transfers yet, for a few reasons. One being that you can't cancel or reverse if there's a problem. Especially when sending over such large sums of money...

Any suggestions or helpful comments would be appreciated

wholesale transaction via pp vs. alternative payment option.

You may file a dispute/chargeback w/ pp, get your money back but evidently pp will catch up to you and closed you account.

My brother tryed came into more than one bad apple, more than one time and after being limited/inquired his transactions only reached 2.5k the most, 3 disputes over one year over wholesale products. pp decided not to do business with him anymore after being a customer since pp first opened for biz.

Use another method of payment, Google Wallet or a credit card terminal perhaps and only use PP for smaller transactions,

So, if you know your supplier, is PP really the only option? You will be surprised that Amazon CO, Google CO, or even Credit Card terminals online via your supplier are best options than pp.

I would just spread my payments in different setting and options not just used paypal for everything.

Thanks for your reply.

I've wanted to feel the security with PayPal (as a buyer of course) mainly because I've had 2 issues in the past where I ordered something that was barely even a known brand name and I guess since it was such a large order, they temporarily seized it at customs and asked for more information. Almost lost it completely and would have been out $600 at the time.

Even though I've been fine for a while, I'm always afraid it could happen again because of the items I'm ordering now are a bit more well known in terms of the brand, and such large quantities might not look good. If they were to ever not let it through, or send it back, I could potentially be screwed out of my money if I paid with something irreversible like bank transfer or Western U.

I've never had to open a dispute or chargeback before (only had 2 against me. won 1 lost other because of Canada Post). But of course I don't want to have it come down to that. Knowing I'm protected when sending such large amounts should be understandable...& would definitely help me sleep better on the nights that I make an order worth thousands.

I can definitely consider a credit card payment though, since large amounts of money and PayPal don't seem to go well together!

EDIT: So this brings me to ask...Do you think it would be fair to ask about getting a slight discount if I pay with credit card instead of PayPal? Cause credit card fees would be less than PayPal, wouldn't they...?

I would consider looking into commercial insurance for large transactions instead of relying solely on PP. Is escrow not an option?

That's a good idea. Thanks, I'll look into that

@ mcmx

Just in case you do perhaps using PP & or Escrow as the payment opinions you can always dispute the transaction with your bank to receive back your money.

I highly don't recommended using bank transfer unless your dealing with a legitimate supplier unless its an authorized distributor of the certain product / or actual store.

I send anywhere from $500-$5000 several times a month to multiple suppliers, and have not had any issues. Keep in mind I do not phake or illegal items, so if you are doing that and paypal catches the smallest wind of that, you could very well run into issues. Something as small as the notes section in paypal that a supplier may leave could be big trouble. If you are not selling anything like that than dont worry, and you will be fine.

I would also like to add that most suppliers will charge you that 4.9% paypal fee to cover a little loss they take, but if you pay by credit card they will most likely just tack it onto shipping so in reality it doesnt matter, since you will pay it no matter how you pay.

Trust and communication is HUGE for suppliers, as you probably already know. Be good to them and they will be good to you.

Thanks for the post. ^

Also, does anyone know how I would be refunded if I paid by credit card? :confused:

For multiple reasons I never bothered getting one (until now - where it's most helpful) so I don't know much about certain things

It would go back to your card, not PayPal balance.

Alright so a good portion of the products I'm buying are from Taobao, through a Taobao agent. Used this agent 3-4 times already and paid with PayPal... but now that my orders and payments will be getting bigger, it seemed wise to use a credit card to pay instead.

However, before I was about to pay them with my credit card for the first time, I checked the processors that my TaoBao agent uses (one for Visa and one for Mastercard) and they both had very bad reviews and complaints from buyers online saying that they had unauthorized transactions, while others saying they never received the item. I trust this Taobao agent to ship my items, however NOT the processor with my info after reading these reviews and complaints.

I don't think using a credit card is such a good idea now. So now I'm back to square one...How do I pay thousands each month for my products? :confused: :faint: :help:

I send about 10 to 20k to a supplier a month with paypal.. never had any issues so far. Most of it is gift too as its WAY cheaper but ive been dealing with them for years and they ALWAYS send me the goods first.

Really, as Gift? I've sent smaller amounts as Gift/Payment Owed/Living Expense before, but I'd think that if sending thousands of dollars, PayPal would really want to intervene and get their cut of the fees, or potentially freeze the sender or receivers account as punishment :ballchain: . That's what would worry me. However I'd still opt to send it as Goods so I could have protection...Otherwise I would just send a bank transfer.

The thing with buying off Taobao is that as soon as my agent/middle-man orders from the Taobao seller, that TB seller's return policy starts (ex. 10 days). By the time my agent receives everything, checks it, and ships it to me, that return policy is over and if there's any mistake in my order (which I'm worried there eventually could be, as things sometimes can get lost in translation) then I'm past the return policy date. Perhaps I could communicate this to my agent and hopefully they'll understand and try to work out something fair with the TB seller. Especially considering the amount of money and business I'd be giving them each month! (Just thinking out loud here as there's no one else I can vent my concerns to lol)

(*I've only ever seen these items available on Taobao...absolutely no other website/seller has them so I have no choice but to buy off there. In case anyone was wondering why on Earth I'm choosing to buy from there...)

If you pay via credit card, it is refunded to the card.

A lot of your thread seems to be getting good advice.

Just a side piece of advice is not to use the same PP for buying from TaoBao and selling to customers.

I understand why I probably shouldn't, but I've actually been doing that for over a year now: buying big from a couple different countries and re-selling under my same legit account. (Not always from Taobao) Luckily I've had no issues so far. But these several thousand dollar orders I hope to be doing soon, will be re-sold under my Stealth accounts

Like I said, MAJOR trust between supplier and myself as they send me the goods first. Once I receive it then I make payment.

You may want to think about your business model because it will go down at some point, maybe once you have just sold and shipped a shed load of items, you WILL get limited.

Buying and selling on the same PayPal is a VERY VERY bad move.

TRUST ME, I've been there and bought the t-shirt years ago before I found out about this forum.

Take my advice

Haven't got limited from doing this for over a year now..but I know, I said I was aware

The reason you dont SELL AND BUY with the same pp is that pp could interpret this as being dropshipping-like...can lead to problems.

I purchase items once a week from a close by supplier and pay with paypal and just got pick items up.

But also do it with many other suppliers who then ship to me.

The trick people is to have a paypal only account in your real name and not have it connected to anything but for payments only.

I do it all the time and never an issue I can remember.

I always thought that it was just because PayPal knew where you REALLY got your goods from.

@Elijah

Was always the reason.

Give paypal less info about origin of the items.

Are we about to have another urban myth start?

paypal think you dropship if you use the same account to pay for goods.

Quite shocking

:pout:

if you are using pp then I recommend you get the business acc.