Escape PayPal: How I Saved My Dropshipping Business

Escape PayPal: How I Saved My Dropshipping Business

Table of Contents:

  1. Introduction
  2. Background: My Experience with dropshipping
  3. The Problem with PayPal 3.1 Account Investigation and Funds Hold 3.2 Delays in Resolving the Issue 3.3 Similar Cases and Concerns
  4. Researching Alternatives: Shopify Payment Gateway 4.1 Deciding to Switch Off PayPal 4.2 Initial Concerns and Fears
  5. Results: The Impact on Sales and Conversion Rates 5.1 Sales Performance After Disabling PayPal 5.2 Positive Conversion Rate Surprise
  6. Conclusion and Recommendation
  7. FAQ

Article: Is PayPal Holding Back Your Profits? Learn From My Experience and Find an Alternative


In this article, I will share my personal experience with using PayPal as a payment gateway for my dropshipping business. I will discuss the issues I encountered with PayPal, including account investigations, fund holds, and delays in resolving the problem. Additionally, I will explore the alternative I decided to try: the Shopify payment gateway. Finally, I will reveal the surprising results I observed after disabling PayPal and provide recommendations based on my experience.

Background: My Experience with Dropshipping

I have been engaged in dropshipping for nearly eight and a half months, and while the beginning was challenging, I eventually found success with winning products. These products allowed me to generate consistent profits, reaching up to $550 in a single day and accumulating a total profit of $8,000 in one month. The ease and convenience of running my business from my laptop were truly life-changing.

The Problem with PayPal

Unfortunately, my journey to success hit a roadblock when PayPal decided to put my account under investigation. This happened just as I had accumulated over $7,000 in profits. The sudden hold on my funds was devastating, as this was the result of all my hard work and efforts. Despite being an active user of PayPal since 2019 and providing excellent customer service, PayPal still decided to restrict my account.

Account Investigation and Funds Hold

PayPal requested various documents and evidence to verify my legitimacy as a business, including company registration papers, invoices from suppliers, and my ID. Despite promptly providing all the requested information, PayPal failed to resolve the issue within the promised three-day timeframe. The lack of communication and continuous hold on my funds left me worried and frustrated.

Delays in Resolving the Issue

Growing increasingly concerned, I reached out to PayPal's customer service for clarification and assistance. However, their response was delayed, and it took over a day for someone to finally address my concerns. The representative apologized for the delay and assured me that my case would be escalated to another department. Yet, they required an additional three days for further investigation.

Similar Cases and Concerns

While waiting for PayPal's response, I decided to research similar cases and discovered numerous accounts of people encountering the same problems. Shockingly, many individuals had their funds not only withheld but also confiscated unlawfully by PayPal. There were instances where companies that had been using PayPal for over 20 years had a substantial amount of money seized without any explanation or resolution.

Researching Alternatives: Shopify Payment Gateway

Faced with the uncertainty surrounding PayPal, I made the bold decision to eliminate it as a payment option and rely solely on the Shopify payment gateway. This was a risky move, as it could either alleviate my worries and grant immediate access to my hard-earned money or ultimately break my business.

Deciding to Switch Off PayPal

Despite initial apprehension, I believed that I had no other choice but to detach myself from PayPal. The fear of potential consequences and a potential decline in sales was ever-present. However, I mustered the courage to disable PayPal as a payment method on my store.

Results: The Impact on Sales and Conversion Rates

Surprisingly, the absence of PayPal did not hinder the flow of orders or negatively affect my sales. In fact, I experienced one of my best days in terms of conversion rates after disabling PayPal. The convenience of customers storing their credit card details and the seamless checkout process proved to be a viable alternative.

Positive Conversion Rate Surprise

On the day after disabling PayPal, I generated $1,351 in sales with a conversion rate of 1.55%. This was a great feat considering my initial concerns. Additionally, the following day yielded even better results, with a conversion rate of 2.55%. This demonstrated that eliminating PayPal as a payment gateway had no detrimental impact on my business.

Conclusion and Recommendation

Based on my personal experience, I highly recommend considering alternative payment gateways like the Shopify payment gateway to avoid the uncertainties and frustrations associated with PayPal. By cutting ties with PayPal, I regained control over my profits and experienced improved conversion rates. Do not let PayPal hold back your hard-earned money and hinder the growth of your business.


Q: Will disabling PayPal affect my sales? A: My experience showed no negative impact on sales after disabling PayPal. In fact, conversion rates even improved.

Q: What are the risks of depending solely on PayPal? A: PayPal's account investigations and fund holds can be highly disruptive and stressful for businesses. The possibility of funds being unlawfully confiscated is also a significant concern.

Q: Are alternative payment gateways reliable? A: Yes, there are several reputable alternative payment gateways available, with Shopify being a popular choice among entrepreneurs.

Q: How can I ensure a smooth transition from PayPal to an alternative payment gateway? A: It is important to inform your customers about the change and provide alternative payment options, such as credit card payments.

Q: Is it possible to recover funds held by PayPal? A: While there is no guarantee, providing the necessary documents and cooperating fully may increase the likelihood of your funds being released. However, it is always advisable to explore alternative payment gateways to avoid potential future issues.