Attention Seller this is Important, Re: PAYPAL HOLD POLICY

First of all let me get this off my chest. Who in the  heck came up with this new hold policy. I have never had my money put on hold. I am an ebay seller since 2000 and I hold a 100% feedback record. I just sold a big ticketed item to a customer and I use a drop ship supplier.  So now I will get a negetive feedback score from the buyer, and I will lose a sell.  21 day hold on a payment sent by the buyer on time and now I cant follow through on my end  and ship the item because of paypals new 21 day hold policy.
What next? This is what paypal has to say:
PayPal Payment Holds



We're committed to providing you and your customers with a fast and secure payment service while keeping our prices competitive. To keep ourselves on track, we've established a Funds Availability Policy.

We might be throwing some new words at you here, but we promise to explain them in full detail. As part of our Funds Availability Policy, "reserves" may apply to certain accounts. A reserve is a percentage of your payments that'll be released at a later date. A related term is "payment hold." A payment hold is a type of reserve in which 100% of the funds received are held for a specified amount of time.

Payment hold - a longer definition
A payment hold is an amount of money that belongs to you, set aside by PayPal, while we make sure that your customers are satisfied. The funds for payments received are held temporarily as a pending balance in your account, and released at the end of the given hold timeframe. The funds may be released early if PayPal determines that the transaction has been fulfilled and your customers are satisfied.
Why does PayPal use payment holds?
Payment holds ensure that sellers have sufficient funds in their account if, for example, a customer files a dispute. This allows PayPal to provide a fast and secure payment service to you and your customers while keeping our prices competitive.

We know this is a change in the way we do business with you and we hope you understand that, if you incur a payment hold, you haven’t done anything wrong. In deciding whether to apply payment holds, we review many factors including transaction activity, business type, and customer disputes.
When do payment holds apply?
Payment holds may be applied to some or all transactions in your account if PayPal perceives a risk associated with your account. Here are some common reasons for holding payments:

You have been an eBay and PayPal member for less than 6 months, and, have limited selling activity, or
You have an eBay feedback score of less than 100, and do not have a record of good performance or
You have a Buyer dissatisfaction percentage of 5% or greater than 5%, or
You have an average Detailed Seller Rating (DSR) of less than 4.5, or
You have received fewer than 20 Detailed Seller Ratings in the last 12 months, or
You have a high rate of customer disputes
You're selling in a high risk category or industry such as, but not limited to, tickets, travel, gift certificates, computers, consumer electronics, or cell phones
You have a spike in selling activities or begin selling in a category without an established history

If your account is subject to payment holds, PayPal will provide you with notice specifying the terms. The terms may require that the amounts received into your account are held for a certain period of time.

If PayPal places payment holds on your account, the funds will be shown as “pending” in your PayPal balance.
When does PayPal release payment holds?
Payments will be held in a pending balance for a certain time period. For example, if you receive a $100 payment (after fees), the $100 will be held in a pending balance for that amount of time. After then, the money will be available for withdrawal.

The money may be released sooner if:

We can confirm that the item was delivered
Your buyer leaves positive feedback. (Applies only to eBay items.)

To get access to this money more quickly, please process this order right away and communicate with your customers early and often.
What can I do to avoid payment holds?
Here are some things you can do:

Improve your DSR feedback rating
Process your orders right away
Communicate early and often with your buyers
Resolve all customer disputes quickly

If you meet the following, you'll receive payments instantly in most cases:

You have been an eBay and PayPal member for 6-months or more, AND
Your total Feedback score is 100 or greater, AND
Your Buyer dissatisfaction percentage is less than 5% AND
You are selling in a category or industry with an established history.

Or

Your average DSR is 4.5 or greater AND
Your have received 20 or more DSRs in the last 12-months AND
Your buyer dissatisfaction percentage is less than 5% AND
You are selling in a category or industry with an established history.

I’m a new seller. Will payments I receive be held?
If you’re a new seller with PayPal, we may hold your payments until you establish payments history and a record of good performance.
I’m a tenured PayPal seller. Will payments I receive be held?
If you don’t have a record of good performance or have limited selling activity or other indication of potential performance problems, your payments may be held.

Things to Clarify when using a Drop Ship Supplier

1. You need to know what is the process for placing an order with your drop ship supplier.


2. You need to know what is the process for knowing and confirming that you item order has been shipped to your customer.


3. You need to know what is the process for handling items that have been damaged during the shipping process, and what do you do if the item your customer receives is defective.


4. You need to know what to do when you drop ship suppliers products are out of stock and you have an order pending for a customer.


5. You need to know what to do if your supplier shipped the wrong item to your customer.


6. You need to know what is the cost of shipping, do they ship international, are there extra charges.


7. You need to know if there are re-stocking fees associated with customer returns.


There are a lot of things you need to think about when it comes to using a drop ship supplier. Drop Shipping is not a new concept but it dose present an opportunity for any one who wants to start selling online without having to carry any inventory.


By Alexiss Jones @ The eHaggle.ws Team