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I'll deal with anyone except stripe.

Shopify is promoting drop shipping. They even push their shopify payments powered by stripe: https://www.shopify.com/payment-gateways

Only one problem. Their terms and conditions strictly prohibit drop shopping. https://stripe.com/us/prohibited-businesses

It's there number - 45. Shipping or forwarding brokers.

When emailed, they say of course it's not allowed you must choose another payment processor. But having quizzed my local circle, I know of many drop shippers who are using shopify payments.

I even emailed stripe and they said, sadly drop shipping is not accepted. But they did not say why.

Drop shipping with Shopify is being heavily promoted right now in Internet Marketing circles. Here is one such product that was launched recently: https://www.youtube.com/watch?v=Wnp4TnFaVJM

It's all about Shopify and Drop shipping and he's using their own payment processor. You guessed it, powered by stripe.

So what's going on here then?

Are stripe allowing drop shipping when they turn a blind eye to it?

I really wanted to use them, now using a competitor.



I don't see anything about drop shipping on that page. I'd also have guessed that any past restrictions would have been on the drop shipper not the companies using drop shippers, but that's just an uninformed guess.


What is drop shipping?


The pointless middle-men of ecommerce.

A drop shipping store is a web "store" that's little more than a form that forwards your order to a distributor or wholesaler or some other real store. The distributor makes wholesale and ships direct to you, the "drop shipper" pockets everything you paid above wholesale as their cut for deceiving you into believing they were some kind of stock-holding entity when in reality you could have gone to the wholesaler and saved money.

It's a niche rife with scammers, hence most payment processors officially wanting nothing to do with them.


Let's say I run a webstore called cookhardwoodfloors.com. I sell hardwood floors, but I don't hold any invetory. When I make a sale, I send an email to another company that holds the inventory. I ask them to ship out the item to my buyer.

That's drop shipping.


Direct from manufacturer to retailer(they don't keep stock).


No, Not from the manufacturer usually, just a third party, and to consumer, not retailers. Some third parties advertise themselves as drop shippers and some don't know they are drop shipping. If I list an iPhone on ebay and instead of shipping it out ( I don't have it) I go to amazon and order it and put the buyers shipping address and have amazon ship it directly to my buyer - that is drop shipping. I am selling something that I don't have in stock and having a third party ship it out.


Listen, I work for a giant manufacturer, I know what drop shipping is. You've given another example of drop shipping, the first being manufacturer directly to retail, without using a distributor. In the end, drop shipping is about cutting out the middle man (distributor, or in your case the retailer).




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