Startup Idea: Automated Credit Card Payment Solution for Drop Shipping E-commerce Websites

Startup idea to develop an automated software solution that enables direct credit card transactions for dropshipping E-commerce websites. The system will eliminate reliance on payment services like PayPal, mitigating transaction fees and facilitating direct product purchase. It would also enable proper analytics, tracking of orders and incorporate provision for a backup seller during order discrepancies.

I have a few Drop shipping websites that I use for passive revenue. Basically, this means E-commerce as a field. One of the more painful parts of running an E-commerce store, in particular a drop shipping store (store without actual inventory) is the inability to use normal credit card transactions with my customers. With dropshipping, you need to use a payment service like PayPal because you have to collect the money then turn around and use some of the money to buy the product your self. Currently, there is no viable way to use a credit card without using a service like PayPal with a dropshipping website. The fundamental problem that this poses towards the industry is that every-time you make a transaction with a PayPal business account you have to pay out some of the money in fees.

Ideally, the software would make it easy for drop shippers to use a credit card service without having to use an in-between payment service. It would also let you as the seller buy product before the money has actually been transferred into your account. It would make it so that you can avoid some of the scams that come with using PayPal, such as chargeback scams etc. Not to mention if your website uses actual SSL and Visa transactions, it would look and feel more legitimate for your customers. Also, it would be easier for the business owner to actually settle their taxes at the end of the year, since everything is going in and out of an actual bank account.

It would also be nice to have this service be automated. If you have a product that you are selling via dropshipping, rather then manually going out and purchasing the product with the customer's address and name, everything would automatically do this for you. Of course if it is automated than there needs to be proper analytics and tooling to track how each of the orders are moving around etc. And should there be problems with the orders there should be the ability to setup a backup seller.