Dropshipping Shocks: Will Bitcoin Be Accepted By eBay?

Dropshipping Suppliers on eBay have traditionally relied on PayPal to deal with payment transactions, and the method has so far worked really effectively for those involved. However the developing popularity of Bitcoin has the possible to impact e-commerce and disrupt eBay-owned PayPal - and it seems that eBay itself is starting to do something about it.

What Is Bit-coin?

Bitcoin is essentially a digital currency in a relatively young stage of development. "Bitcoin" with a capital "B" is the network operating the tech behind the digital cash, whilst "bitcoin" with a "b" refers to the currency itself.

What Are The Primary Function Of Bit-coin?

It is developing in popularity thanks to the convenience and possible profits gained from prospectors searching to cash in on the volatile prices changes. One particular of the most essential factors for its developing popularity is its capacity to keep away from transaction costs that classic credit card or internet payment solutions heft upon the purchaser and/or seller. Exchanging foreign currencies can also be a lot less difficult and cost-effective when converting bitcoins than going by means of classic currency exchanges. This can be massively valuable for private label shipping firms that deal with consumers around the world - as long as those consumers have internet access to use their bit-coins.

Exactly Where Does eBay Come In The Picture?

eBay has often been a haven for retail and dropshipping businesses that rely on e-commerce to get by. It has traditionally relied on PayPal to deal with payments for a variety of goods, from shoes and shirts to watches and digital cameras, but it is quickly realizing that the increasing popularity of bitcoins is not something to ignore. It has as a result filed a patent with the US Patent and Trademark Office named "System And Method For Managing Transactions In A Digital Marketplace." Lines in the patent is worded in such a way that it provides the organization the capacity to convert digital currency into classic currency - explicitly mentioning bitcoins along with Facebook credits and other forms of currency. Merely put, eBay is searching to straight convert bitcoins (or at least an equivalent digital currency) into classic currency.

What Does This Imply For Drop-shipping?

Usually very good news. Bitcoins are getting adopted by much more and more men and women - particularly the tech-savvy ones that are very probably to spend for their goods making use of digital currency. Wholesale enterprises can reach out to a wider purchaser base by widening the payment approaches involved. The way bitcoins are utilized - creating disposable addresses that confirm the authenticity of the bitcoins - also make the transaction procedure drastically faster and less difficult for all parties involved. Getting eBay quickly convert bitcoins to currency can also protect wholesale vendors from the price fluctuations of bitcoins. This preserves the value of the purchase and permits trusted dropshipping to accept bitcoins without having to worry about the value suddenly dropping down because of the jitter nature of Bit-coin exchange markets.

A word of caution

Bitcoins may possibly be a hassle-free technique of payment but they are not a reputable tool for dropshipping firms to store their wealth. If you are a dropshipper that keeps are willing to monitor the fluctuating price points of bitcoins, then you can keep the bitcoins and convert them when they are most lucrative. If you would rather protect your assets and favor to conduct business defensively, then it is ideal that you convert those bitcoins as soon as you receive confirmation of the payment.

All in all, of course, that eBay pushes through with its move to accept and convert bit-coins!

Adeel is the PR manager of Chinavasion: the online wholesaler and dropship company of Dropshipping Suppliers from China.