Payment Gateways for Dropshipping & eCommerce
ECommerce and dropshipping are on theincrease in an increasingly digitally driven marketplace. Similarly, technologyto improve and support rising online sales is improving at a quick pace,leaving businesses to wade through a plethora of options and third-partyplatforms. Retailers are already overburdened with day-to-day management, somaximizing the potential of your online sales can be a demanding task.
A payment gateway is a tool that supports any online transaction between your company and its clients. Only with a paymentgateway in place can you sell goods or services. Payment gateways vary incomplexity, but both e-commerce and dropship stores rely on them to beprofitable. Indeed, dropship stores require a payment gateway to completetransactions in order to sell items from manufacturers, just as e-commerceplatforms require payment gateways in order to complete online transactions.
The role of a payment gateway begins when acustomer begins the checkout process on your eCommerce or dropship store. Whena consumer enters their credit card information, the gateway sends encodedtransaction data to the seller’s bank’s payment processor.
The payment processorsubsequently sends that information to the linked credit card’s bank, whichaccepts or denies the transaction request. The approval is returned to thegateway by the processor, and the payment is successfully and securelyprocessed by the payment gateway. Finally, the pending purchase becomes finalwhen the seller fulfills the customer’s order and the seller’s bank receivespayment from the customer’s bank.
Here are some of the best payment gateway names in the game:
PayPal is, without a doubt, the mostpowerful beast in the payment gateway jungle.
Indeed, Paypal is amassive payment channel, which benefits retailers. It promises consumerfamiliarity and trust; this is especially crucial for small brands andcompanies that do not yet have widespread brand awareness and trust. Its namebrand familiarity will almost certainly lead to increased conversion rates.PayPal is used by 305 million individuals globally and is accepted in over 200countries in 25 different currencies. It is a tried-and-true payment gatewaythat is suitable for a wide range of e-commerce and dropshipping companies.PayPal accepts all major credit and debit cards, as well as PayPal, Venmo, andPayPal credit.
Stripe is another prominent global payment gateway with excellent customerservice and improved flexibility in the form of more comprehensive developertools. With a versatile API, you may tailor the platform to your specificrequirements. You may add a Stripe POS system to your brick-and-mortar store,charge your customers on a regular and routine basis, and complete one-timepayments – whatever your business requires.
Stripe users can also makeuse of the company’s numerous connections with a plethora of third-partyplatforms and applications that can improve their online experience.
Payoneer empowers freelancers and small businesses to stake a claim ininternational markets. It offers an unparalleled mass payout system that makesthe global workforce a much tighter, stronger, and more communicative network.Companies can hire and quickly pay contractors and freelancers from all overthe world, regardless of where they operate. Payoneer enhances its payoutplatform by supporting over 35 languages, which makes the localization processa breeze.
How to Choosethe Best Payment Methods for your Online Store:
The most importantthing to remember when selecting a payment gateway for your eCommerce or dropshipping platform is that there isn’t a one-size-fits-all solution. Considerall facets of your operations, short-term and long-term goals, and currentweaknesses that your payment gateway might be able to improve.
Ask yourself many questionsduring the selection process:
1. Is itpossible for a payment gateway to grow and adapt alongside your business? Doyou intend to grow into other markets? If this is the case, choose a paymentgateway that specializes in localizing transactions for overseas customers.
2. Is thereample customer support for you as a vendor? Business owners must get the helpthey need so that their technology works with them, not against them.
3. What is thecost, and how are the payments structured? Smaller monthly membership costs aremore financially sustainable for larger enterprises than larger transactionalfees, although the contrary is true for individuals and small businesses.
4. Who owns yourcustomers’ data, and how secure is your payment gateway? Security, trust, andtransparency mean everything to consumers.
5. How widely used and understood is the paymentgateway in your core market? Tailor your eCommerce and drop shipping experienceto your loyal customer base first and expand into new markets second.
6. Is yourplatform compatible with your preferred payment gateway? All payment gatewaysare not accepted by all eCommerce platforms. Check that your preferred paymentgateway is compatible with your eCommerce or drop shipping platform.
Part of figuring out the most logical and seamless solution for yourbusiness means considering a combination of several payment gateway providersand being open to some experimentation, particularly with dropshipping. Many ofthe gateways here will combine beautifully with each other as well as withdigital wallets like Apple Pay, Google Pay, and Android Pay.