Running a Successful Drop Ship Business

Jul 28, 2014

A hot, but little-known growing business is the drop ship business. With drop shipping, you are essentially selling goods that you currently do not supply, but for a profit. Once you sell an item, you order it from a supplier or wholesaler and they ship it to the customer. While it may seem complicated, it is a fantastic idea if you are just starting out or if your business is short on storage space. These businesses can be lucrative; however, there are problems that can arise.

One major problem is that many merchant account processors do not want to deal with drop ship merchants. This is because they are considered to be “high risk”, meaning that they are at a higher risk of incurring fraudulent activity. These fraudulent charges often end up costing many times more than the item cost in chargeback fees, which are paid by the account processor and then passed on to the merchant. Too many chargebacks and a merchant account processor or bank can terminate your account, leaving your business without the ability to process plastic card payments. There are options available so that this does not happen. You must find a merchant account processor who is experienced in dealing with merchant accounts for drop shipping.

Your first stop should be with EMB or We at EMB are dedicated to all types of high-risk merchants, including drop ship merchants. We understand that these companies are at a higher risk for chargebacks, and we will not punish your company due to their fees. We also offer chargeback insurance, which can help reduce these fees, as well as alert you to the chargebacks before you are hit with the charges.

Drop shipping businesses are new and can be very lucrative if you know how to correctly operate one. The main catch is finding a merchant account for your drop ship business. It can be done; in fact, one of the top-rated merchant account providers in the United States caters to these companies. By consulting with EMB, you will see that we are dedicated to our work and that we will offer you all the tools that you need to ensure that you have a safe merchant account for your drop ship business.

Your first stop needs to be with EMB. For more information, contact us today at 1-800-621-4893 or by applying for free below


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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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