These days, Dropshipping is the buzzword of ecommerce industry. Cashless economies are now becoming mainstream.
Easy payment methods like ePacket are available in almost all countries. Hence, most of the online marketers are getting ready for a whole new start over in dropshipping.
Best Payment Gateways
- What Are Ecommerce Payment Gateways?
- Why Dropshippers Need Ecommerce Payment Gateways?
- Criteria for Choosing a Payment Gateway for Dropshippers
- Best Payment Gateways for Dropshipping Stores
- Which Payment Gateway Is Easy to Use with Dropshipping?
- Dropshipping Payment Gateway Combos
- Frequently Asked Questions (FAQs)
In a hurry? Here’re our top 5 list of best payment gateways:
|Payment Gateways||No. of Countries|
We have already discussed how users can start their dropshipping businesses with zero money. So, let’s go in detail and find out the top payment gateways for dropshippers.
What Are Ecommerce Payment Gateways?
Let’s say that you have come across an ecommerce store with a clear intention to buy something from it. You add the product to your cart and navigate to checkout. To do so, you will need a payment gateway through which you can pay for it.
An ecommerce payment gateway is responsible for all transactions of the store.
All you need to do is to enter the details of your credit card on the payment gateway page and make the purchase. The payment gateway will deduct the amount from your credit card and send it to the dropshipper’s bank account after deducting some fees. The dropshipper can then transfer this to his/her bank account.
Why Dropshippers Need Ecommerce Payment Gateways?
Dropship stores work just like ecommerce stores. The only difference is they don’t sell products from their warehouses directly. To sell products of manufacturers, they need a payment gateway to make transactions.
Please note: Payment methods are different and people prefer the ones that they are already familiar with.
For example, in the United States, PayPal is the most commonly used ecommerce payment gateway. In Canada, Payoneer and Stripe are mostly used. Even in Ukraine, Stripe is the most used payment gateway. So, while targeting a country, choose a payment gateway that is already prominent or go with a combo of the two – we will discuss this later.
Criteria for Choosing a Payment Gateway for Dropshippers
Let’s suppose you have established your ecommerce dropshipping store and are now looking for a payment gateway. Here is the criteria that you need to follow:
- Select a payment gateway that is popular in the country where you are targeting your products
- Ensure the payment gateway offers a low transaction fee
- Check if it is compatible with dropshipping stores. Most ecommerce gateways don’t prefer dropshippers because of higher refund rates.
- Check if you can use the gateway, once you plan on expanding in the global market
- Check if it offers a good shopping experience to the customers
Best Payment Gateways for Dropshipping Stores
I have curated list of the best payment gateways that dropshippers use the most. From the list, you will get to know what countries are supported, and how much transaction fee they charge.
PayPal is the most commonly used payment gateway for ecommerce stores. It is an accepted payment gateway in more than 203 countries. It supports all prominent credit cards: Visa, Mastercard, American Express, Citibank, and more. To start dropshipping, you will need a business PayPal account.
PS: It is not supported in all countries. This eligible countries list tells if it is available in your country or not.
Stripe is a US-based payment gateway that’s available in more than 25 countries. It supports all major credit cards. But, it is mostly used in Canada, Australia, and United Kingdom. It offers WooCommerce integration as well.
2Checkout is another payment gateway that’s available in more than 87 countries. It supports all major credit cards such as Visa, Mastercard, Diners Club, American Express and others. It is available in many third world countries, where it is used in combination with another payment gateway. See the list of preferred payment gateway combinations below.
Authorize.net is currently available in more than 33 countries. It is one of the oldest and most trusted payment gateways available for credit card users. It also features multiple extensions for easy integration with WooCommerce stores. Authorize.net also has the lowest transaction fee or 2.90 + $0.30 for ecommerce and dropshipping stores.
Finally we have Skrill, a payment gateway available in over 40 countries. It charges 1.9% checkout transfer fees. It also offers an official extension for integration with WooCommerce-based dropshipping stores.
Which Payment Gateway Is Easy to Use with Dropshipping?
It is a tough question. The selection of a payment gateway depends on the owner’s preference and his target market. PayPal is the most used payment gateway. So, we recommend that dropshippers that are in the initial stage, should start their dropshipping business with it.
Dropshipping Payment Gateway Combos
It is better to select at least two payment gateways, if you are dropshipping for the first time. It is hard to find a checkout method that works best for users. Experiment with at least two checkout methods at a single time and then decide which one is better.
Here are the preferred dropshipping payment gateways.
- Stripe and PayPal
- 2Checkout and PayPal
- 2Checkout and Stripe
- PayPal and Skrill
- 2Checkout and Skrill
You can increase potential sales by using a payment method that suits your customers.
A payment gateway is an essential part of any ecommerce business. However, finding the right one is a problem. So, test with different payment gateways and choose the one that works the best.
If you are just starting out, go with popular ecommerce payment gateways such as Paypal, Stripe, and 2Checkout to decrease the risk of losing relevant customers to your ecommerce stores.
Have anything to add to this article? Or, have a question in mind that you want to ask? Simply comment below with your query and we will get back to you as soon as possible.
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