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Paypal For Dropshipping: How Not To Get Banned

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Let’s face it having paypal on your store is key for improving conversions. However often we have to deal with the classic paypal… Frozen money… Blocked accounts… These are nightmares which often come to life.


That’s why this blog will shed light on exactly how to protect your account from being frozen or terminated by paypal.


Before we talk about how to prevent your store from being banned, let’s look at why most stores are being banned…


Why does paypal ban dropshipping stores?

In short PayPal wants to keep their reputation as the safest payment processor for users. And when a store doesn’t communicate with their customers and deliver quality products, they are much more likely to ban accounts.


Because quite often the customers submit a dispute because:

- They got a different product from what they expected

- There were delays they didn’t know about

- Customer support was poor

- No tracking information


Now with this in mind you should know the areas of your business you can improve.

3 Steps To Prevent Being Banned From PayPal

1. Be Transparent

If you create a dropshipping store - be transparent with the shipping times and where your orders are coming from. That way if you get a dispute you weren’t lying and the customer had access to all the information about shipping times, where the order may be coming from.


The easiest way to lose disputes is to mislead the customers.


2. Provide real tracking information

Every order you get should have a tracking number. It’s a sense of security & proof you give paypal to show you’ve shipped out a legitimate package for your customer.


There are dozens of apps which will automatically add Paypal tracking links to your paypal orders.


Even if you get a dispute, you can click on “Add tracking number” and show PayPal your order is in transit and win the dispute if the package is delivered in the next few days.


And yes this means you may need to have faster shipping. That’s why we advise you to get a shipping agent who can help deliver products quicker.


3. Reassure your customers

Once someone places an order make sure to have systems in place where they receive their tracking number. That way they don’t have to wait 2-3 weeks for their package without knowing where it is.


It’s best to do this over email and have a good customer support team in place.


That way if someone has questions, you can respond quickly and give them a safe feeling.



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