Dropshipping high ticket products means that the product cost are expensive.
You might be wondering whether to wait until your payment platform i.e Shopify releases your payment to make an order or use our debit card or credit card?
Which is a smarter choice, well that’s what we shall be discussing in this Article.
For example assuming you were dropshipping a chair that costs $2000 and you are selling this on a Shopify website.
You got an order and money was paid to Paypal and because you are a new seller Paypal holds the money for 21 days.
Meanwhile in your store you’ve indicated that the buy will be delivered within 7 working days.
Assuming you have only $1800 in your account and you have a debit. Of course a debit card works so you’d be able to spend the available balance in your account through your card.
In light of this Scenario, do you use your Credit card to borrow money you don’t have available in your account, use your debit card to spend the available money in your account or wait until paypal releases your money?
Should you use a Debit card to dropship High ticket products?
Using a debit card means you are only spending money you have available in your account through your debit card.
It’s not efficient to use your debit card for dropshiping high ticket products, if the money available in your account is insufficient to cover the cost of ordering a product from your supplier.
As an ecommerce business you ought to be customer centric and part of that is ensuring fast delivery to your customer, if you are dropshippimg, the quicker you can order products from your customers, the faster your customers can get delivered the product.
If you don’t have sufficient balance in your account then using your debit card is not an efficient option when you need to dropship a product to your customer.
Also when you use your debit card, unlike a Credit card, using your credit card does not build your credit score, does not earn you points and rewards.
Recommend; it’s recommended to use your debit card if you have sufficient funds that you require in your Account.
It’s also recommended to use a debit card if you can’t control spending and don’t have the discipline to pay back debts from expenses made on your credit card every month.
Should you wait until your payment getaway releases your payment when dropshipping High ticket products?
Most payment gateways put a hold on your payment when you are a new seller.
For example, Paypal will hold your money for 21 days when you are a new seller.
When you are selling high ticket products or any products at all, it’s important to deliver fast to your customers and communicate clearly with them as to when they can expect to receive their products.
When starting a dropshipping business it is important to bear in mind that you may not always have your customers payment released immediately to you, there you need to keep some money aside to be able to order the product from your supplier and dropship to your customer immediately an order is placed.
This way you avoid customers complaints, returns and chargebacks for delayed shipping.
Recommended; No, do not wait if it’s going to take your payment platform a long time to release the payment, have some money aside to be able to order the product from your supplier and dropship to your customer immediately an order is placed.
Should you use a Credit card for high ticket dropshipping?
Credit cards let you pay with your card using money you don’t have available in your account, so basically you’re spending borrowed money when you use a Credit card.
Credit card commonly available in North America.
Credit card loans are interest free when you pay back on time usually within a month.
Late payment of Credit card loans comes with an interest and reduces your credit score.
When you are doing high ticket dropshipping and using your Credit card you will be able to pay the cost of dropshipping using money you don’t have in your account balance. Basically using borrowed money.
Credit cards can be your best friend or your worst enemy, depending on how you use it.
The big mistake is to believe that the credit card money is yours and not pay back and pay back on time.
When you don’t pay back credit card loans on time. You reduce your credit score and attract high repayment loan interests and you won’t be getting any points or rewards.
Recommended; It’s recommended to use a Credit card if you have the discipline to pay off your Credit card loans on time.
Here are 5 reasons to use a Credit card wisely.
- You leverage other people’s money;
When you use your credit card, you are momentarily spending other people’s money-not use and leveraging other people’s money to pay the cost for your business. When you use a credit card you can borrow money for free. If you pay back on time, the loan is interest free.
- You build up your credit score credibility;
using your credit card and paying back on time, positively builds your credit score, so when you need a major loan from the bank, you’d be seen as a credible person to receiveYou major loans.
- You get rewarded;
using your credit card and paying back on time, gives you rewards and points. Most times this points can be redeemed as discounts on flights, hotel reservations, can be used to buy gadgets etc
- You are better protected;
when you use a credit card, you are better protected as most credit card companies have insurance and fraud protection.
For example; if a someone happens to get your credit card pin and removes money on your credit card, You can complain to the credit card company and issued a new credit card and refunded.
Unlike with most debit card, if money is frudenlently taken out of your account, you don’t get refunded.
If you are dropshipping, you should have a customer centric business and ensure that you are offering the best service you can to your customers. Therefore you should have some money aside to run your Business.
If your available funds is insufficient, you can pay with a credit card but ensure to pay back your credit card loans on time.