How To Create Paypal Business Account For Dropshipping

How To Create Paypal Business Account For Dropshipping


How To Create Paypal Business Account For Dropshipping : Creating a PayPal business account is an essential step for entrepreneurs looking to start a dropshipping business. PayPal is a widely recognized and trusted payment gateway that enables seamless transactions between buyers and sellers. With its robust features and global reach, PayPal provides a reliable and secure platform for processing payments in the dropshipping industry.

To create a PayPal business account for dropshipping, there are specific steps that need to be followed. These include providing accurate business information, verifying your identity, and linking your bank account or credit card for seamless fund transfers. Additionally, it’s important to familiarize yourself with PayPal’s terms of service and policies to ensure compliance and avoid any potential account limitations or restrictions.

In this article, we will guide you through the process of creating a PayPal business account for dropshipping, providing step-by-step instructions, tips, and insights to help you set up your account successfully and start accepting payments for your dropshipping business.

How To Create Paypal Business Account For Dropshipping

Do I need a PayPal business account for dropshipping?

However, PayPal only allows a limited business activity on the personal account. For example, casual sellers with low sales volume can accept payment using their personal account. For eCommerce and dropshipping businesses, PayPal recommends going for a business account

While having a PayPal business account is not mandatory for dropshipping, it is generally recommended for several reasons:

1. Payment Processing: PayPal is a widely accepted payment gateway that allows you to securely process transactions. Having a PayPal business account enables you to accept payments from customers, which is crucial for running an online dropshipping business.

2. Credibility: Having a PayPal business account adds credibility to your business. It signals to customers that you are a legitimate and professional seller, which can help build trust and increase conversions.

3. Buyer Protection: PayPal offers buyer protection, which can give your customers peace of mind when making purchases from your dropshipping store. This protection can help resolve disputes and provide refunds if necessary, enhancing the overall customer experience.

4. Integration: PayPal integrates with various e-commerce platforms and marketplaces, making it easier to manage payments, refunds, and order processing. It offers plugins and extensions for popular platforms like Shopify, WooCommerce, and Magento, simplifying the payment setup for your dropshipping store.

How do I use PayPal for dropshipping?

  • Start with a PayPal Business account. Make sure you open a separate PayPalBusiness account for your business, even if you have your own personal account.
  • Communicate well about shipping
  • Sell quality products from reliable suppliers.
  • Invest in customer service.

To use PayPal for dropshipping, you can follow these general steps:

1. Create a PayPal Business Account: If you don’t already have one, visit the PayPal website and sign up for a PayPal business account. Provide the necessary information, such as your business name, contact details, and bank account information.

2. Link Your Bank Account or Credit Card: Connect your PayPal business account to your bank account or credit card. This allows you to receive payments from customers and withdraw funds from your PayPal account to your bank account.

3. Set Up Payment Buttons or Integration: Depending on your dropshipping platform or website, you can set up PayPal as a payment option. This typically involves generating payment buttons or integrating PayPal into your e-commerce platform. Many popular platforms like Shopify, WooCommerce, and Magento have built-in PayPal integrations or plugins available.

How do I make my PayPal a business account?

  • Here’s how to upgrade from a Personal account to a Business account:
  • Go to Settings.
  • Click Upgrade to a Business account.
  • Enter all of the information and follow the steps on screen.

To make your PayPal account a business account, you can follow these steps:

1. Visit the PayPal Website: Go to the official PayPal website ( and click on “Sign Up” or “Get Started” to begin the registration process.

2. Choose Account Type: On the signup page, select “Business Account” as the type of account you want to create. PayPal offers different types of business accounts, such as “Standard,” “Pro,” or “Express Checkout.” Choose the account type that suits your business needs. The “Standard” account is typically suitable for most small and medium-sized businesses.

3. Provide Business Information: Fill out the required information to create your business account. This includes details such as your business name, email address, contact information, and business address. You may also need to provide your Social Security Number or Employer Identification Number (EIN), depending on your country and business structure.

How To Create Paypal Business Account For Dropshipping

Do I need GST number for PayPal business account?

Sign up for a business account on the PayPal website. Next, you will have to activate your account. This means confirming your email address, completing the KYC procedure and inputting your bank account information. This also includes putting in the company GST number.

Whether you need a GST (Goods and Services Tax) number for your PayPal business account depends on your specific circumstances and the requirements of your country’s tax laws. The need for a GST number varies from country to country, so it’s important to consult the regulations applicable to your location.

In some countries, businesses are required to register for a GST or similar tax identification number if they meet certain criteria. These criteria may include factors such as your business’s annual revenue, the nature of the goods or services you provide, and your country’s tax regulations.

To determine if you need a GST number for your PayPal business account, you should consult with a tax professional or the appropriate government tax authority in your country. They can provide guidance based on your specific business activities and the relevant tax laws in your jurisdiction.

It’s important to ensure that you comply with all applicable tax laws and regulations in your country to avoid any potential penalties or legal issues.

Can I use personal PayPal for business?

It’s possible to use personal PayPal for business purposes. If you want to receive or send payments from your clients, you can do that just as easily. However, doing so will leave you unable to take advantage of PayPal’s business features such as loans, credit cards, and more.

While it is technically possible to use a personal PayPal account for business purposes, it is generally recommended to have a separate PayPal business account for your business transactions. 

1. Professionalism: Using a personal PayPal account for business transactions may not convey a professional image to your customers. Having a dedicated PayPal business account helps establish credibility and separates your personal finances from your business finances.

2. Business Features: PayPal business accounts offer additional features and functionalities tailored for businesses. These include the ability to create and send professional invoices, set up multiple users or employees with different access levels, integrate with e-commerce platforms, and access detailed reporting and analytics.

3. Legal and Accounting Compliance: Maintaining separate personal and business accounts helps simplify record-keeping and accounting for tax purposes. It ensures that your business transactions are properly accounted for and makes it easier to track and reconcile business-related income and expenses.

4. Buyer Protection: Using a personal PayPal account for business transactions may limit the buyer protection features available to your customers. PayPal offers certain protections for buyers in the event of disputes or issues with their purchases, and these protections are more comprehensive with a dedicated PayPal business account.

Is it free to have a PayPal Business account?

How much does it cost to open a PayPal Business Account? It’s free to sign up for an account. PayPal merchant account fees only apply to transactions—which means you only start paying when you start selling. There are no set-up costs, monthly fees, or cancellations fees.

Creating a PayPal Business account itself is free. There are no charges for signing up and creating a PayPal Business account. However, certain transactions and services provided by PayPal may have associated fees. Here are some common fees to be aware of:

1. Transaction Fees: PayPal charges a fee for each transaction processed through your PayPal account. The transaction fee is typically a percentage of the transaction amount, plus a fixed fee per transaction. The specific transaction fees may vary depending on factors such as your country, the type of transaction (domestic or international), and the volume of transactions processed.

2. Currency Conversion Fees: If you receive payments in a currency different from your PayPal account’s primary currency, PayPal may apply a currency conversion fee. This fee is usually a percentage of the transaction amount and is applied when converting the received funds into your account’s primary currency.

3. Other Fees: PayPal may charge additional fees for certain services, such as chargebacks, refunds, or receiving payments from certain countries or regions. These fees can vary, so it’s important to review PayPal’s fee structure and policies specific to your country and account type.

How long does PayPal hold money dropshipping?

As you begin your selling journey, or start selling after a while, we hold the initial payments you receive for up to 21 days.

Typically, when starting a dropshipping business or if you have a limited sales history, PayPal may place a temporary hold on funds received from dropshipping transactions. This hold is a security measure to help protect both buyers and sellers and mitigate the risk of fraud or disputes.

The duration of the funds hold can vary and may depend on factors such as the transaction amount, shipping timeframe, and buyer feedback or confirmation of delivery. In some cases, PayPal may release the funds after a certain period of time, usually within 21 days or less, once the transaction is considered completed and the risk associated with the transaction is reduced.

To minimize the duration of funds holds, it’s important to follow PayPal’s guidelines and best practices for dropshipping, such as providing accurate and timely shipment tracking information, delivering products within the estimated timeframe, and maintaining good communication with your customers.

Can I use PayPal only for Shopify?

You can use PayPal as a payment provider for customer checkout and processing for your Shopify store. PayPal is one of Shopify’s default payment providers. As soon as you open a Shopify store, you’re given a PayPal Express Checkout account that is linked to the email address you used to sign up for your Shopify store.

Yes, you can use PayPal as a payment gateway exclusively for your Shopify store. Shopify supports PayPal as one of its integrated payment providers, allowing you to offer PayPal as a payment option to your customers during the checkout process.

To use PayPal with Shopify, you can follow these steps:

1. Set Up a PayPal Business Account: If you don’t already have one, create a PayPal business account. Visit the PayPal website and sign up for a business account by providing the necessary information.

2. Connect PayPal to Shopify: Log in to your Shopify admin panel and navigate to the “Settings” section. Under “Payment providers,” select “Choose third-party provider” and then click on “PayPal” from the list of options. Follow the prompts to connect your PayPal account to your Shopify store.

3. Configure PayPal Settings: Once connected, you can customize various settings related to PayPal within Shopify. Specify the email address associated with your PayPal account, set up shipping options, and configure additional preferences as needed.

4. Test the Integration: Before launching your Shopify store, it’s important to conduct test transactions to ensure that the PayPal integration is working correctly. Make a few test purchases using different payment methods, including PayPal, to verify that payments are processed smoothly and funds are correctly credited to your PayPal account.

How To Create Paypal Business Account For Dropshipping


PayPal business account is a crucial step for anyone venturing into the world of dropshipping. PayPal offers a secure and reliable payment gateway that enables smooth transactions between buyers and sellers. By following the necessary steps, entrepreneurs can successfully set up their PayPal business account for dropshipping.

Throughout the process, it’s important to provide accurate business information and undergo the required identity verification to ensure a legitimate and trustworthy business presence. Linking a bank account or credit card to the PayPal account allows for seamless fund transfers and efficient management of finances.

To maximize the benefits of a PayPal business account, it’s essential to familiarize oneself with PayPal’s terms of service and policies. Adhering to these guidelines helps maintain compliance and reduces the risk of account limitations or restrictions.

By following the step-by-step instructions and tips provided in this article, entrepreneurs can confidently create a PayPal business account for dropshipping. This will enable them to accept payments securely and efficiently, establishing a solid foundation for their dropshipping business and facilitating smooth transactions with customers.