what is up hustlers welcome back to episode 3 of this completely free
dropshipping for beginners tutorial series where I'm bringing back to basics and
basically going over how to get into drop shipping very lucrative business
model at the moment so in this episode I'm gonna be going over payment gateways
very critical step for every drop shipper and this is also going to be a
good video for the ones that are ready for the drop shippers who are already in
the space but are unsure about which payment gateway to go for and also how
to set up payment gateways in a way that is most profitable so let's go okay so I
get a lot of financial questions and the most popular one being which payment
gateway should I set up on Shopify and first and foremost I need to say that
I'm not a qualified accountant so this is not professional advice but my answer
to which pen gateway just set up is all of them all of them
and I'm gonna tell you why in a second setting up a payment gateway is an
extremely important part of the setup of your store because it dictates how your
customers money is gonna go directly into your bank account so the first
thing you need to do or my recommendation is set up a different
bank account go into a branch go onto your local branch and ask for a new
account reason being is because you never want to muddle your personal
finances with your business finances and I've been there done that that's a
rookie mistake on my end but for the people that are watching this video make
sure that you open up a free account just as long as there's a new account
and you can make sure that all your savings and all your revenue you guys
insert into that account separately okay so at this point I'm gonna be assuming
that you watched all the other episodes previously and that you set up your
Shopify account at the moment so I'm gonna jump on my laptop here and run you
through the exact payment gateway options that you should be looking at
okay so let's get into the juicy and exciting details of payment gateways so
the easiest way I like to navigate Shopify is just go into the search tool
bar type in payment first option right going through settings and navigating
the menu like that so the first thing that you'll see is Shopify payments
powered by stripe that is the default payment gateway it is a very great great
payment gateway I love it because it is the cheapest to run and also it's the
most convenient it's this automatic setup so basically first time you set up
your payment gateway you just need a complete account setup simply by
clicking that button there and just entering your details you need to again
make sure that they're all accurate and that they're all you know there's
basically providing the real details here because it's very hard to change
after you insert your details I've been there done that and you need to reach
out the shop fire in order to change your details and it can be a pain so
here's the regular question that I get what what payment gateway should I use
because there is quite a few click chain providers here you can see here that
there's a bunch of third-party credit card providers and I'm gonna tell you
exactly when and why you should use a different pay payment gateway first and
foremost I highly recommend shop shop light payments it is the easiest way to
get the money from your customers however here is the biggest I guess
biggest reason you would need to use a different payment provider the biggest
reason is if you're outside of the target market that you're looking to
sell to so for example let's just say obviously I'm in Australia but if I'm
looking to target the US for example you do not want to be offering your products
in Australian dollars it gets completely confusing and secondly if you use a an
app say for example a price converter app if you're setting your prices in
Australian and converting over to USD its gonna look really wacky for example
a twelve dollar Australian product might be nine dollars 53 cents in USD and look
that just looks unprofessional and that's gonna hurt your conversion rates
and your overall store look you don't see a sauce for example you know
setting their prices at $8 55 cents or something not very clean-looking like
that so that's one of the reasons and if you are looking to sell to the states
and your outside of the states here's what I would recommend okay
because shop five payments will not let you set your prices to an external
currency as in if you don't live in the States you can't set it to USD what you
need to be doing is I recommend going to a different payment gateway and I highly
recommend stripe use it usually or a payment gateway that's available to you
that in and again this is up to you there's so many there's so many
different options here but only the day that's what you would be doing if you
want to sell elsewhere in that specific country now
shop setting up and a different payment gateway is infinitely more tough than
setting up stuff like payments you need to be providing a bunch of documents in
what they call credit points you need to be achieving sentiment or credit points
with the certain amount of documents you need to provide for example your
passports your driver's license all that sort of stuff and then you potentially
need to head to the bank to set this all up but at the end of the day guys it is
worth it certainly PayPal guys PayPal is extremely important PayPal's a little
bit annoying the sense that they always take the biased side when it comes to
disputes or almost always however PayPal is very very important when it comes to
again conversion rates there's a lot of buyers out there who will land on your
site start to checkout and if they don't see PayPal as an option to check out
with then you can kiss that potential buyer goodbye so first things first set
up PayPal and how you do that is it's automatically turned on always set up to
PayPal Express Checkout what you want to do is head on to the
PayPal site and for some reason a lot of people are saying that you can't set up
PayPal unless you have a business LLC or ABN if you're in Australia or the
similar likes in Europe or UK whatever that's not true guys you can simply set
up a personal account and that's all you need to start off with until you start
to scale to really big amounts of money so go ahead and sign off free personal
account and once you've got that account make sure that the email address is
reflected in your shop light back-end so the email account that you sign up with
on personal on PayPal website itself needs to be inputted into the backend
here otherwise the worst thing that you want happening is it going to a random
email address that's not even connected to account and that's lost money right
there finally guys alternative payments like I said earlier in this video you
want to activate as many payment methods as possible because it just gives the
customer as many ways to purchase as possible and less ways to bounce off
your website when they're checking out on your website so the biggest one I
would recommend simply because it is becoming so popular is after pay after
pay is simply a financial system where they allow buyers who purchased the
product and make payment in increments usually over three to four payments so
all you need to do guys is again head on to the after pay website and sign
yourself up for free and then input your merchant ID and secret key here which
you can obtain from the after pay website itself so that's it guys manual
payments I don't really recommend bank deposit cash on delivery money order
because it is a very unless you're doing a specific job shipping store for
example if you're doing high ticket items and you're selling yachts for
example not exactly yachts but you know what I'm talking about like products
that are worth thousands of dollars many payments can work however if you're
selling items that you're making you know like $20 on and you're making a
thousand sale you can imagine that a bank deposits in
cash and delivery will not work very well it's very easy to lose track of
many orders if you're going from manual payments so I don't recommend that so
that is it guys make sure that you're setting up as many payment options as
possible for your buyer and you're going to see the conversion rates at the end
of the day I jump up because I've been in a position where I had to turn up
PayPal for for a few days actually while I was working out some problems with
PayPal and I did see my conversion rate be cut in half guys in half that was
really painful so as much as I'm not the biggest fan of PayPal it is very
important and after pay is my preferred alternative payment it works very well
for me too so I hope you enjoyed this episode guys watch out for more episodes
in the future there's many more episodes coming out and as always keep on
hustling