A lot of people ask me how they can pay the suppliers on Aliexpress when the payments from Shopify, Stripe and PayPal are held and not available yet. The short answer is: You have to use debt.
There’s two different forms of debt.
Bad debt and good debt.
Bad debt is anything that’s spent on consumption or debt that doesn’t result in a profit. However, you should strategically use debt if it allows you to make more money. And that’s definitively the case with drop shipping. So just pay the suppliers with your own money.
And if you don’t have any money then use a credit card or a friend’s credit card to fulfill the item on AliExpress until you have the funds.
You need to come up with solutions when you are an entrepreneur. You need to be creative.
But always pay off your credit card bills immediately.
You’d be stupid not to use debt to multiply your money. If for every $2 debt, you make $4 or $6 profit, then you want to have as much debt as possible, right? And that’s the case with drop shipping.
So for anyone who still doesn’t get it:
1) Receive the order and payment on Shopify
2) Go use your own money or a credit card to buy the item for the customer on AliExpress to make sure it is fulfilled right away.
3) When funds are cleared, transfer them to your bank account and pay off your credit card bill and enjoy the profit you made.
It’s really not rocket science 🙂
Sometimes I’m concerned by the lack of creative and strategic thinking some people have. There’s a lot of things that are challenging about drop shipping, but this is an easy one.
Now go out there and make some money.
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