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