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When it comes to handling disputes or claims, the Dropshipping Business Model is no different than any other type of business. Of course, there are particularities for this specific model that may trigger a customer to open dispute, but that is nothing we cannot handle. The most common reason customers might get upset about (for the specifics of this business model) is that the product is from and shipped from China. If a client complains about the product quality, that is not because of your business model but because of the product itself, the supplier, etc, but not because it is from China as most products are made there, including iPhones. If you ship from China using standard mail (i.e. ePacket, Aliexpress Standard Shipping), and you have on your site terms and conditions that products arrive in 10-20 business days, and that there may occur delays because of situations out of your hand such as custom clearance, weather conditions, less airport and customs personnel because of the Covid-19 situation, etc., a customer will not be able to win a dispute stating that the product never arrived (delayed) because you are already protected and have a solid argument to submit in the platform (PayPal, Stripe, Shopify, Etsy, etc) where the dispute is brought.The following factors can surely increase your odds of winning a claim:
Knowing what constitutes and what not constitutes Unauthorized Transaction, Item Not as Described, Item Not Arrived, will surely help you draft a much better dispute/claim reply by having arguments pursuant to PayPal Terms and Conditions.Thinking like a lawyer: Knowing a PayPal dispute or claim between seller and buyer falls under PayPal Seller Protection. Unlike a lawsuit where you might need the representation of a lawyer, in this PayPal dispute/claim process you don't need the representation of a lawyer, but you need to act as the lawyer and the business person when submitting your arguments, hence you will act both as the defendant and as your own lawyer to say it in some way.Strong terms & conditions and business practices: the most common practices needed to protect your business from claims from a legal and business perspective.Know the procedure: Acknowledging the difference between a dispute and a claim, and the basics of the dispute/claim procedure.