How to Reduce the Chances on Blocks and Holds with Email Marketing

What Are Payment Blocks and Holds

A payment block stops the transaction completely due to risk or a policy violation. A payment hold temporarily freezes the funds to manage disputes or sudden sales spikes. Both are your biggest enemy as a dropshipper.

The problems they cause are serious: cash flow disruptions, more chargebacks and refunds, risk of permanent payment bans, and lost scaling opportunities. That last one hurts the most. You finally find a winning product, and then your payment provider pulls the brakes.

The 3 Root Causes of Blocks and Holds

After working with 2,000+ Shopify stores, we see the same 3 causes over and over.

First: poor communication. No shipping updates. No post-purchase emails. Or worse, confusing order status emails that make zero sense. The customer loses trust before the package even arrives.

Second: poor customer support. No responses to inquiries, or rude and untrained agents handling complaints. That drives customers straight to their bank for a chargeback.

Third: high dispute rates. Low trust from customers, post-purchase remorse, and bad email designs all push dispute rates up. And once your dispute rate crosses a threshold, your payment provider steps in.

How Email Marketing Reduces Blocks and Holds

Email marketing directly addresses all 3 root causes. Here is how.

Trust and Brand Credibility

Consistent branded emails build customer confidence and lead to fewer disputes. Make sure your emails match your store branding: same colors, same logos, same font. Always use a personal email approach. Data from our clients shows branded emails reduce chargeback rates by up to 40%.

Proactive Order Updates

Proactive order updates keep customers informed about their parcel. This reduces uncertainty and prevents disputes. Send emails at 4 key moments: pre-transit, in-transit, out for delivery, and delivered.

Send these through Klaviyo, not through ParcelPanel directly. Your sender reputation on Klaviyo is better. The customization is better. And the storyline aligns with what the customer expects.

Delay Notifications

You can notify customers about parcel delays proactively. Tell them the expected new delivery date. This builds more trust and directly lowers dispute rates.

Key Takeaways

• Payment blocks stop transactions. Payment holds freeze funds. Both kill your cash flow and scaling.
• The 3 root causes: poor communication, poor customer support, and high dispute rates.
• Branded email templates build trust and reduce chargebacks by up to 40%.
• Send order updates at 4 stages: pre-transit, in-transit, out for delivery, delivered.
• Use Klaviyo for order update emails instead of ParcelPanel for better sender reputation and customization.
• Proactive delay notifications prevent chargebacks before they happen.