While it seems like a no brainer, there are still dropshippers who neglect to use the leverage that PayPal brings to their eBay business. In today's online marketplace, this feature is seen by many as a necessity, and without it, dropshippers leave a large percentage of their potential profits on the table.

Even before eBay acquired PayPal, the two companies were used hand in hand by both buyers and sellers on the internet. Today, as one company, the two interact more than ever, and accepting PayPal payments is absolutely crucial for your eBay business. If a dropshipper neglects to accept PayPal as a means of payment for his or her items, he or she makes it much harder to create a steady income stream from dropshipping, and achieving Powerseller status becomes a much more difficult task.

PayPal makes eBay transactions incredibly easy. Because many PayPal accounts are already funded with cash, most eBay buyers don't even see the money that leaves their accounts. This smooth, easy payment process encourages sales. Those who use PayPal prefer to use it over credit cards or personal checks, because it is much faster and easier for the buyer. Therefore, if you do not accept PayPal payments in your auctions, you are likely to be passed over by perspective buyers, and they will buy from someone who accepts PayPal payment even if the price is higher. Yes, many will pay more for the luxury of paying via PayPal. Therefore, if YOU are the one that accepts this type of payment, and your competitor does not, you may even receive a higher price.

However, if you neglect to accept PayPal payments, there were no doubt be less people bidding on your item, which naturally decreases the amount that you will receive for you product. Also, remember that people are sometimes more likely to bid on items that already have several bids, and accepting PayPal can encourage this idea to work in your favor.

Using PayPal is also beneficial to you because it allows you to receive payment much faster and, therefore, gives you the green light to ship sooner. Faster shipment means the potential of receiving a better feedback rating, and it snowballs from there. PayPal also allows you deposit the funds directly into your bank account. You could literally sell an item on eBay and have the money in your hand in less than an hour.

If you insist on only accepting personal checks and other slow methods of payments, you will not receive as many bids. In return, you will not get as much as you could for your items. You will make fewer sales, and payment will be slower. In return, you will receive fewer points for positive feedback, and your growth will be stunted.

If you want to seriously compete in the eBay marketplace and use dropshipping as a means to create a stream of income, implementing PayPal into your business is not only necessary, but absolutely essential to your success.