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Ok. When I was trying to clear up my current Paypal account they requested photoid, which I sent a scan of. Does this mean I will be screwed if they ask for photoid on another account?

That depends on how you handle a possible future request from them. Don't send them the same ID for another account that you've already sent this time. Always provide ID appropriate to the info they have.

Nope. You supply paypal the ID for that other account;)

Submit your photo ID, submit the invoices which contain your address and the supplier's address.

Ship the items so that you can resolve the disputes. Make sure you send some kind of tracking information and enter that into Paypal's resolution centre. I'd say last 10 to be safe. If that's impossible, refund the money to resolve disputes however this looks bad when it comes to Paypal's review process.

Wait a few days and hope that they lift the limitation. There's no guarantee they will do this if you have a lot of buyer disputes. But if you have submitted the information they requested and settled the disputes and they refuse to release your money, you can step up the action to force them to release the money.

Dropshipping, cash pyramid schemes whatever are not sound business models and not suitable for ebay. Do you really need to drop ship? Why not import and deliver?

Thanks, I suppose there is a small chance I can revive my Paypal account, but with about 50 cases against me, isn't that extremely unlikely?. As you rightly said refunding those orders I haven't shipped causes a black mark on my account, and I refunded all 5 they asked for. I have no money to be released at the moment, my balance is heavily in the minus.

With regard to dropshipping, there are alot of very successful dropshippers(I can name a few), not just on Ebay, I just didn't go into my venture with enough research.

your better off starting from scratch from the way things are going

So what lessons have you learnt from this experience?

50 dispute cases? I had this amount over Christmas, but I resolved all cases and submitted documents. Took Paypal to the small claims court to release my funds, they eventually caved in, released my money and restored my accounts before I had paid my overdue fees.

Started with fresh new accounts and I'm gradually building up trade again. I'm back, bigger and stronger with 2 extra businesses created during the chaos.

Too many to list :)