Top Payment Gateways for Shopify Dropshipping stores in 2020
Hello readers! In this article we shall be discussing about the top payment gateways for Shopify Dropshipping stores, also, we would shed light on each payment gateway’s features and then we shall guide you on how to choose the best payment gateways for your Shopify Dropshipping store and generally all ecommerce platforms .
Obviously, ecommerce has taken it’s roots all over the internet, more importantly dropshipping as a notable feature of the ecommerce system, has spawn all over and gained more popularity and efficient use in the ecommerce world of marketing! With dropshipping, cashless systems (or economies) gained its strength and edge as it emerges to become the standard mode of almost every transaction, simple payment methods like ePackets are available and accessible worldwide. Without doubt, a revolution of online marketers implementing these new standards and techniques are arising in the world of dropshipping.
In a rush? Can’t wait to read further? Here is a list of the top payment gateways for your dropshipping store (shopify or ecommerce)
What are Ecommerce Payment Gateways?
Supposed you visited an eCommerce store to purchase an item, after browsing through the various categories and you finally saw the product you intend to buy, then you click on the add to cart button and then proceed to checkout. To continue from here and verify that you’ve successfully purchased your desired item, a payment method is issued to you to complete your transaction (either through use of credit/debit cards or any of the convenient options available to you in that eCommerce store). These payment methods (or payment gateways) are called: Ecommerce Payment Gateways.
For every standard eCommerce store, there is always provisions for payment gateways (or methods) to allow users complete their purchase or transaction on their store. An eCommerce payment gateway is responsible for deducting the amount from your credit/debit card and then sends it to the dropshipper’s bank account after deducting some fees. The dropshipper can then transfer the cash to his/her bank account.
Why do Dropshippers need Ecommerce Payment Gateways?
Without payment gateways, transactions cannot be completed, imagine a user who goes to the supermarket to purchase an item, and after adding all desired items to cart, there is no method for he/she to pay for those item. Dropshipping stores are vastly similar to eCommerce stores, the only contrast is that dropship stores don’t sell products directly from their warehouses, to sell products or items, payment gateways are needed to perform sales transactions, hence the need for dropshippers to embed eCommerce payment gateways.
It is always advisable to understand that payment methods are different (based on locations and countries), so people always prefer to purchase through the payment methods they are familiar with, therefore it is always advisable to have many payment methods or payment gateways embedded in your store in order to allow clients choose their preferred method of payment. For example, Paypal payment method is very popular in the United states, in Canada, Payoneer and Stripe are used, even Ukaraine makes use of Stripe for payment transactions. Be sure to always choose a payment gateway that is of most used while targeting a country or better still it is good to incorporate all forms of payments and allow them to choose their preferred method.
What are the Criteria for Choosing a Payment Gateway for Dropshipping?
Having setup your eCommerce or Shopify dropshipping store and you are searching for the right payment gateway to use with your store, the following are the necessary factors to consider:
- Always select a payment gateway that is popular in the country where you are targeting your products or custormers
- Make sure you state/guarantee that the payment gateway offers a low transaction/charge fee
- Ensure to check that the payment gateway is compatible with dropshipping stores.
- Ensure to test if you can use the payment gateway, as you plan on expanding in the global market
- Make sure you test if the payment gateway offers a good shopping experience to the customers
List of the Best Payment Gateways for Dropshipping Store
Knowing the right payment gateway for your store is surely a measure to save you lots of hiccups and downfall when establishing your eCommerce store. I’ve compiled a concise list of the best payment gateways which are being used by majorly successful dropshipping and eCommerce stores today, also how much transaction fee they charge.
Paypal is the most prominent and commonly used payment gateway for eCommerce and dropshipping stores. Paypal is accepted in more than 203 countries. It supports almost all types of credit cards such as: Visa, MasterCard, American Express, Citibank and more. To use Paypal for dropshipping, you will need to signup for a business Paypal account. Although Paypal is used in more than 203 countries, be aware that some countries do not support the use of Paypal. Check this list to know if your country is eligible or not.
Another payment gateway is Stripe. Stripe is a US-based payment gateway which is available in more than 25 countries. Stripe payment gateway also supports all major credit cards just like Paypal. Countries like Canada, Australia and United Kingdom are prominent in the use of Stripe payment gateway.
2Checkout is another type of payment gateway which is available in more than 87 countries. This payment gateway also supports all major credit cards such as Visa, MasterCard, Diners Club, American Express and others. 2Checkout is available in many third world countries, whereby it is used in combination with another payment gateway.
Authorize.net is another type of payment gateway available in more than 33 countries. It is regarded as one of the oldest and most trusted payment gateways available for credit card users. Authorize.net
Still counting is Skrill, another type of payment gateway which is 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.
- Google Checkout
Another great payment method for ecommerce store owners in western region is Google Pay or Checkout. Majority of residents in the US and Europe use google wallet for storing money. Since most of their shopping is based online, they can easily pay with Google Checkout option. This option is faster than other dropshipping gateways also more reliable than the rest. Google checkout charges the least amount of money since the payment gateway also works like a bank account (i.e the wallet).
- Apple Pay
Finally, one of the most widely used contactless payment gateways in the market is the Apple Pay. Apple Pay allows customers to pay with the click of a button. The contactless payment gateway accepts: Visa, Mastercard, American Express, Union Pay, QUICPay, and Suica.
WHICH PAYMENT GATEWAY IS EASY TO USE WITH SHOPIFY DROPSHIPPING?
With reference to the information above concerning ecommerce payment gateways, selecting the best or right payment gateway for use in dropshipping (Shopify or any ecommerce) depends on the user’s choice and most importantly his target market and customers. As we can see that Paypal is the most used payment gateway, it is advisable that dropshippers who are starting up for the first time to start their dropshipping business with it.
Nonetheless, the most important note to take for every dropshipper (be it Shopify or any other ecommerce) is that when trying to implement payment gateways, it is always advisable to choose payment gateways which is popularly used in the country he/she is targeting or working with.
IS IT POSSIBLE TO COMBINE PAYMENT GATEWAYS FOR DROPSHIPPING?
Below is a list of best payment gateway combo for dropshipping
Another efficient practice for all dropshippers is to combine two or more payment gateways, especially those who are dropshipping for the first time. Although it is hard to find checkout method that works best for users, it is of great advantage to implement with at least two checkout methods at a single time and then decide which one works best.
- Stripe and Paypal
- 2Checkout and Paypal
- 2Checkout and Stripe
- Paypal and Skrill
- 2Checkout and Skrill
NB: Always try observe the payment method that suits your customers the most by studying the most used payment gateway.
Payment Gateways takes vital role in any ecommerce business, be it dropshipping or online purchase and delivery. Sometimes it may seem hard to find the right one, but guess what, testing is not a crime, ensure to test with different payment gateways and choose the one which works best for you.
If you are establishing for the first time, always start with popular ecommerce payment gateways like Paypal, Stripe, and 2Checkout to avoid the risk of losing relevant customers to your ecommerce or dropshipping store.
Before you go, this may be helpful:
- Do you love to own a successful dropshipping store but you don’t have the technical know how to go about it?
- Do you need help in setting up or fixing your ecommerce store? Then you are in the right place!
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