Ebay seller: Do we really need paypal?

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Malaysia
March 9, 2008 12:33am CST
I have been using paypal for receiving fund from ebay since day 1. Honestly, i haven't feel any satisfactory using paypal since day 1 as well. Firstly, the rate that paypal are charging are really, really expensive! For ebay store owner, it is 10% charged by ebay on final cost once goods are sold. For example, i sold my product at AUD59.99, AUD6 will be charged by Ebay. Then, if the buyer make their payment using Paypal, another~4% will be charged by Paypal. In another words, 15% of your profits are going to Ebay and Paypal.Note: Paypal is a subsidiary of Ebay. Secondly, i would like to talk on the missing shipment, or missing portion of parcel on shipment. Nevertheless, when unfortunate events like these happens, communication between seller and buyers are vital. However,when buyer signed on the receipt, they usually did not notice that portion of parcel was being stolen during shipping. Once receipt is signed, it also means that seller cannot claim anything from the post office. At this point of them, While buyer can claim for item dispute in Paypal (items/qty of items received was not as describe, as some of the goods are being stolen/missing), Seller cannot claim anything from paypal and post office. Although some seller choose not to refund by showing tracking number, however, most of the time, buyer will "escalate dispute to claim". This is the time when paypal has the authority to declare that dispute will be resolved to the favour of buyer and seller has to refund to buyer. I have faced this case before and am really dissapointed. I would like to ask other ebay seller, do we really need paypal? Do you encourage customer to use bank deposit instead of Paypal?I know it is really convenience to us receiving fund from oversea, however as for local customer, when they can choose to do online deposit transfer or cash deposit, it will save a great deal on paypal fees.
3 people like this
7 responses
• Hyderabad, India
9 Mar 08
I agree with you serena. It happened with me also and after that i encouraged my customers to go for bank deposits as it gives them enough confidence while purchasing the product. Also, i gave them other option that is moneybookers which is amazing unfortunately ebay dosent have that option. Regarding shipment go for something good like DHL, FEDEX, or the mighty one usps. Also you have another option try to levy insurance on your customer for the product he buys. Whatever may be the reason these two services really take a deep plunge into our profits, this is not only your concern mate the whole community and my friends think in the same way. Try to ponder other options they might help you.
9 Mar 08
well it is useful ofcoure though i dont know much about but there is not any other option it i think.
• Malaysia
9 Mar 08
regarding paypal payment, i have thought of giving a small percentage of rebates, if my customer using bank deposit. However i am worried that customer will feel 'uncomfortable' for different charges based on paypal or cash deposit. Shipment using DHL and FEDEX is double, close to triple of shipping cost when compare with my conventional posting company (A government subsidiary shipping company).
• United States
9 Mar 08
We've used PayPal as well and do not care for it, we have been searching for another program to use. Unfortunately eBay buyers feel much more comfortable purchasing an item through paypal. We have learned to raise our prices a little bit in order to try and cover the costs of the fees. It really is quite ridiculous and pretty soon they wont be getting our service. They have made it much more difficult for us to use it with our business (that is outside of eBay), making payments not go through, or not allowing us or others to log in to our accounts.. it's quite frustrating so I understand what you mean.
1 person likes this
• Malaysia
10 Apr 08
I really do hope there is second alternative for ebay seller which would charge for lower fee.
@classy56 (2880)
• United States
10 Mar 08
Im a seller an a buyer on ebay.Me myself i prefer paypal.I know their rates are high but you get buyer an sellers protection.On most cases.Now ebay a diffrent story their rates on insertion fees are really gone hogwild.But if you add it all up at the end of the year paypal an ebay are makeing a killing on rates.If you are going to use bank deposit an money orders, than you have to wait for your money for a few days.I used paypal debit card alot an it comes in handy if you need quick cash.
• Malaysia
10 Apr 08
Ebay and paypal add up is almost around 15% from your payment. It is a a lot of charges.
@smoke_gun (1243)
• Malaysia
10 Mar 08
this is the major reason why i just selling on ebay.com.my.no storage charge,no selling charge,no shipping charge,a penny product sold is a peeny i earned.i have to say thanks to ebay malaysia!
• Malaysia
10 Apr 08
no shipping charge? That's cool you find your earning in ebay.com.my I did post of ebay.com.my and ebay.com, it was a huge different on the sales figure from two diff sites. Really, my sales in ebay.com.my can't move, i hardly sell one household product in a month.
@redfang (967)
10 Mar 08
paypal is ebays little bank which is not really a bank and another way for them to make more money from their sellers but at the same time not protect anyone in any real way. To be honest there are dozens of ways for buyers to pay sellers and every way buyers put themselves at risk for sellers on the other hand it's all just a case of what do you prefer. paypal is not a necesity but the fraudsters love using it because it is easy to defraud people with, genuine buyers like it because it's fast easy and convenient. some sellers will always say paypal is the best, paypal is secure, paypal is great others will say paypal is the worst at the end of the day it's all down to personal preference, when i sell on ebay i do not accept paypal because i personally hate it and do not like the ease in which it allows people to defraud others, i always offer cheques, postal orders, bank transfers and i now offer neteller as well if anyone wants to use it. For saving paypal fee's buyers are not bothered about this as they are not the ones who incure the costs it is the seller so it's nothing to them and as you can not charge buyers to use paypal you are stuck to be honest, and yet again something which ebay and paypal cooked up together in order to keep buyers using paypal as much as possible as when some sellers were charging for it's use buyers were being turned off paypal and so used other payment methods which would in the end cost paypal/ebay alot of money in lost revenue so they couldn't have any of that and banned sellers from charging for the use of paypal. the whole ebay/paypal thing now is just money greed on ebays part, they are a monopoly on internet auctions and they damn well know it so they have sellers and buyers over a barrel, not enough sellers and buyers are moving away from there and using other auction sites so they will be there for a long time yet and only because the sellers and buyers are too afraid to move to another site even though there are plenty who offer better fee's. it's sad really.
• Malaysia
10 Apr 08
You may introduce those better site with better rates here..:p
@eden32 (3973)
• United States
10 Apr 08
I think the only accurate way to determine if paypal is worth your time is to offer paypal & money orders (or whatever) as a method of payment & see which your customers prefer. I owned a retail store for a few years (brick & mortar not online) and all credit card processing companies charge for their service. Paypal is on the high side of normal, but in my experience they are within the normal range of what a processing company would charge. Credit card agencies also almost always side with the buyer. Perhaps with whatever you offer on ebay, your buyers would be just as happy to pay with a money order or bank draft, if that's the case stop taking paypal. But I know my buyers use paypal & I'd rather lose a small % of the total than completely lose the customer.
@eden32 (3973)
• United States
10 Apr 08
I think offering a rebate is a great idea, but I'm pretty sure it's against the rules. Double check in the policy section, perhaps there is a legit way around the rule.
• Malaysia
10 Apr 08
As ebay sellers, i am accepting bank deposit as well as paypal. I still find user prefer paypal over bank deposit. I would offer cash rebate of 2% if they select bank deposit.
1 person likes this
• China
9 Mar 08
i never buy or sell things on the ebay,but as a matter of fact,charge for 15% of your profit is too much.that is one of the main ways that ebay profit from. cut down to a level of 5% will be acceptable i think
• Malaysia
10 Apr 08
Yes, i seriously think the charges is too high!