My $81,000 PAYPAL HOLD For Shopify Dropshipping (How To SOLVE It)

My $81,000 PAYPAL HOLD For Shopify Dropshipping (How To SOLVE It)


I woke up and I was like what the what’s
going on guys it’s your boy the Beast Of Ecom back with another video
dropping nothing but value bombs as I always do now in today’s video I’m gonna
sharing with you a personal story okay how PayPal held over eighty thousand
dollars of my own money in the account totally locked away so that I couldn’t
touch it at all but what I want to explain is why it
actually happens how I resolved it and what you guys can do to potentially
prevent it from happening all at least softening the blow if it ever happens to
you now if this is the first time ever watching one of my videos and you’re
into ecommerce you’re into Shopify you into drop shipping in you’re in the right
place please do like comment smash the subscribe button hit the notification
bow so you stay up to date for when I drop my latest videos okay so what
actually happened well as I’ve mentioned PayPal held over eighty thousand dollars
okay of my business this is money in my
account totally froze it so I couldn’t touch it at all now this came at a super
critical time okay we literally had just found a winner and I was scaling it up I
think we went from like 10k per day to 15k per day and things were going
fantastically so next thing you know I get a call from PayPal and I actually
missed the call it was from an Irish number now here in the UK PayPal head
offices are based in Ireland so it was an Irish number and I actually missed
the phone call that was from PayPal but then what happened was I checked my
email and to what was in that email totally threw me off I read the email
and it says your PayPal account has been frozen we are holding over $80,000 okay
I seen the figure on the email we are holding it called a collateral reserve
and they literally just held it okay and then I had a what was called a role in
reserve as well now this completely threw me off okay
you got to think of it this way I’m at a point where I found a winner
okay I’m scaling things are going fantastic you
everything is going well I’m thinking I’m going to the bank and PayPal
literally punch me in the face I had suppliers to pay for I had add
cost to pay for okay you know I needed that money to be able to run my business
there’s no way I could run the business without having this money you know being
released into my account eighty thousand dollars okay is a lot of money to anyone
so why does it happen and how was I able to resolve it well the way PayPal works
okay you got to think of it this way now with dropshipping of course there’s a
time delay people don’t get their products in you know the same way they
would for Amazon and no matter how clear you make it on your Shopify store on
your product page in your confirmation emails some people just don’t read this
information at all also you are not directly in control of the product
themselves get into the consumer of course if you’re sending the information
off to your supplier your supplier is the person you know essentially in
control of getting that product to the person so PayPal are out to protect
themselves and you’ve got to understand why it actually happens they’re not
realistically out to get just you because you know you got to think of it
this way with that time delay you could accumulate so much money in the account
okay we’ve draw it out and then go on holiday closure a PayPal account down
and PayPal are basically sucked along with the customers as well so that’s why
it happens and it’s generally only when you’re scaling up to you know 10k per
day six cable days or when there’s generally a large jump in your sales now
you’ve got to basically see you know you pay power reserves and you pay pal you
know holes and stuff like that as a good thing because if you’re getting hit with
PayPal reserves and holes and stuff like that it means you’re making money so how
did I actually resolve it how did I get back my 80k well the first thing I did
was I didn’t remove it from my store okay I did not remove PayPal from my
store reason being is PayPal was generally accumulating you know 60 to 70
percent of all of the revenue generated in my store so I didn’t want to remove
it and miss out on so many sales in the email that they sent me was
a long list of information that they required for myself some of the
information I had no idea how to get other information I already kind of had
and what I will do because I’m a very nice guy I’m gonna drop a link down
below with a document of some of the questions they may ask you
so thank me later I caught up PayPal and say you know what on earth is going on
basically you know I need this money I’m desperate okay I’ve got suppliers to pay
you know I’ve got advert costs to pay if I don’t get this money back I’m pretty
much going bust what can you do now you’ve got to remember a lot of these
people on the other side of the phone especially here in the UK they are just
humans okay so it’s very important to try and build a bit of a relationship
with the person that you speaking with try and bring out some empathy okay you
know such as my businesses you know gonna go bus you know please help me you
know and all those sorts of things and they’ll tell you pretty much what you
need to do a lot of the kind of textbook response will be you know follow the
stuff in the email and they will try and help you out so you do have to get the
information in the email to PayPal so as mentioned there was a whole list of
things that they wanted me for they wanted like you know business
registration they wanted tracking numbers they wanted invoices they wanted
volumes that I’m gonna be doing in you know two three four months ahead they
wanted to know how many orders I’ve got outstanding you know how many people
actually work in a business a whole host of information and what I had to do was
literally go out and get that information so I spoke to my supplier
said have you got you know can you create me some invoices okay for the for
the money that I’m sending to you guys and he said sure no problem so that’s
one thing that you need to do if they ask for you for invoices and stuff like
that reach out to your supplier again those people are human as well you know
try and get them on skype as well that’s a lot more easier to communicate than
Aliexpress if they’ve got a skype okay make sure you get them on skype and just
ask them to send you a an invoice for the products that you’re that you sell
in essentially because PayPal want to see you where you’re getting your
products from now it’s very edgy to say that you actually drop shipping to
PayPal because they like it well they don’t
really like it of course but they pick and choose what they enforce and what
they don’t enforce so you know what I’ve done is well there is I send pictures of
my suppliers warehouse as one of the products and all those sorts of things
so they can see that we are a legitimate business ok we do have products we’re
not scammers we’re not gonna run away with the money we are getting orders and
we shipping out real life products another thing they asked me for was a
whole host of tracking numbers ok they sent me a list of orders that were that
were out and they need the tracking numbers for all of these all of these
borders that were going out so it’s super important that you send in your
products via a packet or a trackable sauce which is trackable from China
right towards you know the country that’s been sent to because if you’re
sending stuff just like China Mail where it leaves you know China and pretty much
goes into the ether leave the lines that the customers door or doesn’t then
you’re in big trouble trying to mail maybe the cheaper option and you may be
thinking more profit but if PayPal slamming your account and you can’t
answer those questions or don’t have that information it is not worth it at
all once I sell all the information over I was calling PayPal pretty much every
single day okay following or chasing it or seeing what is going on because like
I said I was very much at a desperate point okay and business has his ups
business has its downs and this was very much a down point okay I was up sailing
you know making tons of money and stuff like that I thought I was on to a winner
and you know next thing you know PayPal just closed the doors on my face but I
was super resilient because at the end of the day you know that’s the money
that you’ve generated and you want that back so remember all you’ve got to do
pretty much is just be resilient okay and very much get in contact with PayPal
explain your situation okay why you need the money what is happening that’s all
they really want to hear from you guys is make sure that you’re not just a
scammer you’re not just gonna run away with the money okay after I’d sent all
the information through that then their analysis they say three to four business
days this was probably petting on for about a week or so I got an email to say
that they will release in the collateral reserved
ACK money now I was absolutely over the moon like you could not imagine of
course the first thing that I did was withdraw pretty much most of that money
into my bank account so that it was you know safe and there in a bank account
that I could withdraw and that PayPal couldn’t pretty much get their hands on
it so one thing I would definitely
recommend is try to keep as least money as possible in your PayPal account now
when I say at least I don’t mean a couple hundred dollars okay make sure
you’ve got at least a couple thousand in there because of course you’re gonna
have disputes and stuff like that as well potentially so you always want to
have money in there as well and it’s gonna look highly suspicious as well if
you have no money in your PayPal account or a very little amount in your PayPal
account so always try to keep it at a minimum but not super super low that it
looks really suspicious one thing you can do is hook your PayPal account up to
your advert account and pay for your as via PayPal which means that of course
you’re not getting charged as well with your conversion fees which is another
thing which is a real pain in the ass remember if you’re not from the US and
you withdrawing US dollars okay into whatever currency you may be your home
currency you’re gonna get charged conversion costs so it’s always best to
try and keep that money out of paypal but in a way where you’re not incurring
conversion costs and one other way to do that of course is like I’ve just
mentioned pay for your facebook adverts with PayPal so what can you do to stop
PayPal getting their hands on your hard-earned money the truth is nothing
I’m afraid well what you can do of course is plan for if it happens and
like I’ve mentioned if PayPal are gonna put holes in your account you’ve got to
remember that it’s a good thing because you’re making money and remember you can
always get it back as long as you follow and answer the questions that they ask
you but here are some tips now the first thing of course give great customer
service it kind of goes without saying but make sure you’ve got customer
service in place and that you’re telling customers that products may take an
extended period of time if you’ve got VA s make sure you’re doing that and tally
you know giving them templates and stuff like that as well and make it clear
about your ship in times so if stuff is gonna take long then put it on your
product page put it in your confirmation emails put it in your shipping emails
put it in your fa Q’s and in your shipping policy so it is literally
plastered everywhere now if you are getting disputes what you want to make
sure you do is respond to those a.s.a.p okay super important now you can either
get your VA to do it which is you know what I generally advise you to do get
your customer service va so just handle it login give them a login and let those
guys you know upload the tracking information and basically respond to
customers as quickly as possible ideally within 24 to 48 hours so that PayPal can
see that you are responding to disputes and trying to resolve them as quickly
and as efficiently as possible now a little tip that you can do which not a
lot of people actually know about I personally did again like I say you know
it’s not gonna make a massive difference like I said if people are gonna do it
they’re gonna do it anyway but what you can change in your business
settings is the volume that you actually sell on on a monthly basis and you can
set that sort of super high so it’s kind of given PayPal an indication of the
volume that you’re expecting to receive on a monthly basis and how much of it is
coming through your online store so I think mine’s at 75 to 100 percent of
what I put of the sale is coming through you know the website and as well my
monthly volume is as high as it possibly can as well as the actual prog cost per
sale as well I’ll put that up super high again I’m not sure how much effect it
actually has on how much PayPal actually take it into account but it’s worth
definitely doing so I hope you got some value from this video if you did please
do like comment and subscribe hit the notification about as well so you stay
up to date you do not want to miss any of the value bombs that are give away if
you are going through any sort of problems with PayPal please be
persistent okay you can get through it remember they are just human beings so
you have to reason with the main thing is giving them the
information that they want that is critical and if you give them the
information that they want is pretty much hard for them to say no remember I
will drop a link down below as well for those list of questions that PayPal may
ask you again they do change on a case by case basis so do not expect to
receive all of these questions or even have any of them okay so you know click
on them have a look at them and just be prepared for what you may be asked if
you get a hold remember I have got a free private mastermind group down below
click the link join the group I’m in there other marketers are in there all
talking about e-commerce Shopify drop shipping and all of that good stuff
reach out to me via Instagram drop me a DM drop me a follow drop me a like and
we can have a conversation on there that is it for this video and I’ll be back
helping you guys out bring you as much value as possible so until next time
take care

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