Business Investment amount and Protx

[sussexrob]

Hi Everyone

With dropshipping, when a customer buys from my site, they pay me obviously. I then goto my merchant and put in the order. What concerns me is the 3-4 days it may take for the customers money to clear credit card wise, so I need to pay for the good out of my own money.

Say i make 10 sales a day, thats quite a bit of money needed to even start drop shipping. Have i got this correct. If so, I take it its business loan time?

Many Thanks to those who understand and can give me some insite in the financial side I may need

very much appreciated. I dont want to dig a hole :)

[mke]

1. Protx is highly regarded. From a developer's point of view, it is easy to implement for you.

2. State categorically that the buyer should allow, say, 10 to 14 days for delivery. make damned sure you get paid by these strangers before you let the goods go. Only supply on credit to regular customers you know you can trust. Even if it were only for one day it would be credit and you cn not know you are going to be paid.

3. Even with a merchant account, it takes some days depending upon the merchant account provider, between the purchase being made and the money hitting your account.

[sussexrob]

Cheers Mke

I can understand the 7-14 totally. All that concerns me is that other companies ship the same day if before 1pm so could loose sales

Protx looks like the one i will go with , thanks

[Silk]

What concerns me is the 3-4 days it may take for the customers money to clear credit card wise, so I need to pay for the good out of my own money.


You have to realise that you do need some capital to start a business.

We ship same day on all orders and we have to buy our stock in sometimes months in advance AND we have to pay for our stock before it's even manufactured.

Of course you could use a credit card to pay your supplier and then you wouldn't have to physically pay that bill until well after your customer has paid you.

[IridiumCorp]

Not all banks take 3 days to clear. It depends on where your bank account is and where your merchant account is.

All UK based processors submit funds settlement file after midnight and before 06:00 am to the bank.

If you are running on such thin cash flow margins you will have trouble getting a merchant account in the first place. The banks will require a commensurate about of cash reserve to trading volumes.

So yes.... Bank loan time.

[sussexrob]

Many Thanks both of you

Dawned on me last night, so appreciated you putting my mind straight

I will have to look into it further then

Appreciated

[sysops]

2. State categorically that the buyer should allow, say, 10 to 14 days for delivery. make damned sure you get paid by these strangers before you let the goods go.

While on planet mke this may be a good way of doing online retail, in real life what will happen is that most customers will simply go and buy from one of your competitors who offers same day dispatch.

The only time you can get away with terms like that is if you're selling something which can't be bought elsewhere.