How do I get paid? Money transition - Shopify, Oberlo, and AliExpress

Designing your store and importing new products is only one part of your dropshipping business. Since there is more than one part involved in your daily dropshipping operations, it can get confusing and difficult to understand how your money flows through them.

Let’s talk about the financial aspect of order processing through AliExpress.

First, a customer makes a purchase on your store.  The customer pays for the ordered product through your provided payment gateway (Shopify Payments, PayPal, 2Checkout, etc.).

Then, paid funds progress into an authorization period after which come out as a captured transaction in your payment gateway account and as a paid order in Shopify:

At this point, you have money and an order that needs to be processed for your customer.

Since your order came for a product that was imported from AliExpress, you're going to need to purchase it directly from your supplier to your client.

In most cases, AliExpress only accepts credit cards or bank transfers as a payment method. Therefore, your idea of paying by PayPal or other online payments systems is foiled. Even if you could use them, payout schedule for most users is applied, and you would not be able to put your customer's money to work instantly.

For all the previously mentioned reasons you need to have a small working capital reserve on your credit card to be able to place new orders for your customers on AliExpress. Once you start to build up a bigger revenue reserve from your sales, you will be able to employ it without having to use your personal funds.

On a more positive note, our recently released Oberlo Supply system offers a fully automated dropshipping solution which also facilitates transactions within our application.

Once you receive an order for a product which was imported from our Supply system, you simply need to confirm the payment with a pre-assigned credit card (set in Oberlo supplier settings). Using this tool saves you time as you’ll no longer have to worry about manually processing orders.

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