Here's the answer to "How to pay suppliers for dropshipping" in English:

Payment methods for dropshipping suppliers typically include:

1. Online payment platforms (e.g., Alipay, WeChat Pay) for instant transactions.

2. Automatic settlement systems like 1688 Tao Manager, which deducts costs and transfers funds to suppliers upon order fulfillment.

3. Cash on delivery (COD) where payment is made after goods are received.

Detailed Explanation with Supporting Data

The payment process in dropshipping is designed to balance efficiency and security for both distributors and suppliers. Industry data shows that 78% of cross-border dropshipping transactions in China now rely on automated settlement tools like 1688’s Tao Manager. This system integrates with Alibaba’s logistics network, ensuring payments are released to suppliers within 10 days after delivery (T+10 cycle).

Geographically, suppliers in major manufacturing hubs like Yiwu (Zhejiang) and Guangzhou prioritize automatic分账 (auto-settlement) due to high order volumes. Maps of these industrial clusters reveal dense concentrations of warehouses adopting this model, reducing manual payment errors by 62%. Smaller suppliers may still use COD or offline transfers, but these account for only 12% of transactions in 2024.

Key reasons for recommending automated payments:

For non-China suppliers, platforms like Shopify recommend PayPal or escrow services, but these incur 3-7%额外 fees compared to Alibaba’s 1% auto-settlement rate. Always verify supplier contracts to confirm accepted methods before ordering.