homepage Welcome to WebmasterWorld Guest from 54.204.73.126
register, free tools, login, search, pro membership, help, library, announcements, recent posts, open posts,
Pubcon Platinum Sponsor 2014
Home / Forums Index / WebmasterWorld / Ecommerce
Forum Library, Charter, Moderators: buckworks

Ecommerce Forum

This 42 message thread spans 2 pages: 42 ( [1] 2 > >     
Does adding Paypal really increase sales?
I will have to make big changes to my company setup to include Paypal.
hulahoop

10+ Year Member



 
Msg#: 3542372 posted 5:45 pm on Jan 7, 2008 (gmt 0)

Hi,

Does adding Paypal really increase more sales?
If yes, what sort of percentage are we looking at?
Anybody has a pre and post paypal experience to see the percentage difference?

 

BeeDeeDubbleU

WebmasterWorld Senior Member beedeedubbleu us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 3542372 posted 8:53 pm on Jan 7, 2008 (gmt 0)

I will have to make big changes to my company setup to include Paypal.

I am not sure I understand what you mean here?

vetofunk

5+ Year Member



 
Msg#: 3542372 posted 9:16 pm on Jan 7, 2008 (gmt 0)

I am not sure if it it increased sales, unless the sales I received by using the paypal fuction would not have happened without it.

I added Paypal this holiday season and would say about 5% of my sales were through the paypal option...question is if I would have gotten them without Paypal...

hulahoop

10+ Year Member



 
Msg#: 3542372 posted 4:11 am on Jan 8, 2008 (gmt 0)

exactly. I just want to know if it would increase sales aside from normal Worldpay account. I've heard that many people have paypal funds and like to use them instead of putting in their credit card details. As for making changes to my account, it's really a long story and won't want to put anyone to sleep. I am outside US and as usual, we are usually sidelined and are offered less options and features.

ByronM

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3542372 posted 2:29 pm on Jan 8, 2008 (gmt 0)

If adding paypal doesn't lose you any sales then i'm pretty sure you're still ahead of the game ;)

Hard to measure sales since it could have been merely a convenience factor however its a safe bet that if they use PayPal Checkout vs Payments Pro (the credit card side) then you probably earned business you wouldn't have had otherwise.

HOWEVER paypal does offer "throw away" debit/visa numbers for paypal accounts so using the paypal process isn't always a sureway to gage paypal success since some people do that.

Its a good way to leverage a new market of people familiar with the service and as long as it doesn't confuse your existing customers it opens up a new realm of possibilities.

hulahoop

10+ Year Member



 
Msg#: 3542372 posted 5:01 pm on Jan 8, 2008 (gmt 0)

well i guess the only way to know if it does bring in significantly more sales is to try. I would do it if it brings in 10-15% more sales. Thanks anyway.

CernyM

10+ Year Member



 
Msg#: 3542372 posted 7:32 pm on Jan 8, 2008 (gmt 0)

To some extent, it is going to depend on your market.

If you sell industrial supplies, there may not be as much demand for PayPal as if you sold children's clothing.

For some people, PayPal is their "mad money" account. They feel free to spend whatever is in their account, whereas they might hesitate to spend on credit or checking account debit.

About 9% of our customers choose to pay via PayPal. Hard to say what percentage of them would pay via another means if available.

prfb

5+ Year Member



 
Msg#: 3542372 posted 12:38 am on Jan 9, 2008 (gmt 0)

I agree with CernyM; it really depends on your product. In particular, I think it depends on the extent to which your offering is an impulse purchase vs. a carefully considered purchase.

PayPal and Google Checkout are really easy: No need to fish out a wallet, no need to type in a long credit card number.

So, if it's something a customer has been thinking about and decided he needs they probably would not be put off by a lack of PayPal, and will be willing to go get that CC#.

On the other hand,if it's more of an impulse purchase, they may decide to buy it "later" (maybe elsewhere, maybe never).

hulahoop

10+ Year Member



 
Msg#: 3542372 posted 11:00 am on Jan 9, 2008 (gmt 0)

what do you think paypal for downloadable products? prices are smaller.

BeeDeeDubbleU

WebmasterWorld Senior Member beedeedubbleu us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 3542372 posted 11:20 am on Jan 9, 2008 (gmt 0)

For some people, PayPal is their "mad money" account. They feel free to spend whatever is in their account, whereas they might hesitate to spend on credit or checking account debit.

This is a good point.

When I thought about this it's exactly how think of my own Paypal account. I usually have a couple of hundred pounds in there that I just forget about. If I see something that I want and I can pay for it with Paypal it almost feels that I am getting it for nothing.

This is silly I know but that's the way I think about it and I am sure there are many others the same as me.

Jack_Hughes

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3542372 posted 2:23 pm on Jan 9, 2008 (gmt 0)

We're B2B so I would be surprised if Paypal increases sales for us...but we'll give it a try anyway because international customers may like it. Together with Google Checkout it gives a nice Amazonesque way to pay without having to enter payment details repeatedly.

As our next e-commerce system has both built in we're going to see how well they work.

roxyyo

5+ Year Member



 
Msg#: 3542372 posted 7:06 pm on Jan 9, 2008 (gmt 0)

I've seen studies that claim 14% increase in conversions for sites that add alternative payment options - not just PayPal but Google Checkout and BillMeLater.

Amazon's rumored to be developing one too, and I wouldn't be surprised if Facebook goes for it too - they're rumored to be developing their own payment processing for the network and this could potentially extend off their network.

Anyway, the reason cited for sales increases are:

1 - quicker, simpler checkout process, you save time checking out and can purchase when you don't have your credit card on-hand
2 - privacy. Especially with smaller, lesser known sites, when you pay with pay pal you protect your credit card information as it's only shared with paypal, not several different merchants.

A third incentive could be the special promos and discounts PayPal and Google checkout offer, especially over the holidays (free shipping or $10 off etc)

roxyyo

5+ Year Member



 
Msg#: 3542372 posted 7:36 pm on Jan 9, 2008 (gmt 0)

"Ritz Interactive credits a promotion that offered 10% off when paying with PayPal for helping to boost holiday sales about 20%. "

- From Internet Retailer news item.

dickbaker

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3542372 posted 4:25 am on Jan 10, 2008 (gmt 0)

Does anyone think that using nothing but PayPal hurts sales?

Essex_boy

WebmasterWorld Senior Member essex_boy us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 3542372 posted 1:22 pm on Jan 10, 2008 (gmt 0)

I dont like it, to me PP on a site says 'This site is run by a 12 year old', I tend to steer clear of sites using it

BeeDeeDubbleU

WebmasterWorld Senior Member beedeedubbleu us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 3542372 posted 1:34 pm on Jan 10, 2008 (gmt 0)

I dont like it, to me PP on a site says 'This site is run by a 12 year old'

Isn't that a bit short sighted? There are millions of sites using Paypal, none of them are run by 12 year olds and many of them are industry leaders (Think Webmasterworld as a good example.)

I think you may be underestimating the part that Paypal plays in today's ecommerce systems.

sniffer

10+ Year Member



 
Msg#: 3542372 posted 3:16 pm on Jan 13, 2008 (gmt 0)

I have four very different payment options on my site. The more options the better imo.Paypal is about 10% for us.

I'm in no hurry to get rid of it either. Anybody with a Paypal account is already geared towards buying stuff online. You don't set up a Paypal account unless you're an online consumer...

Mreif

5+ Year Member



 
Msg#: 3542372 posted 4:01 pm on Jan 13, 2008 (gmt 0)

I have recently read a research that stated that merchants can convert as many as 20% more customers by offering them more payment options to choose from.So the question is really what do you have to lose? The other thing you need to ask is does PayPal answer the needs of the audience you are selling to? Is your site more geared towards the youth market that do not have credit cards or bank accounts? Then maybe PayPal is not the right payment processing service for you.There are alot of them out there, and it might be worthwile to do a search according to some keywords and see what you come up with that works for all your needs.:)

BeeDeeDubbleU

WebmasterWorld Senior Member beedeedubbleu us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 3542372 posted 4:38 pm on Jan 13, 2008 (gmt 0)

Anybody with a Paypal account is already geared towards buying stuff online.

Another good point.

hulahoop

10+ Year Member



 
Msg#: 3542372 posted 6:04 pm on Jan 13, 2008 (gmt 0)

So I guess YES to paypal and as many other options to pay for your customers. So now this brings to another question : What should be the main payment engine? Of course your own payment gateway would make you look like a more serious site. But if you want to stay away from your own processing and want to go with a third party, which payment partner comes out tops?

woop01

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3542372 posted 8:01 pm on Jan 13, 2008 (gmt 0)

I don't like it, to me PP on a site says 'This site is run by a 12 year old', I tend to steer clear of sites using it

You gotta love the irony of posting that on WW.

BananaFish

5+ Year Member



 
Msg#: 3542372 posted 9:43 pm on Jan 13, 2008 (gmt 0)

Paypal used to be just to buy stuff on ebay and for so-called "sites ran by 12 year olds" and basement dwellers. It has now evolved into the major player in the online payment market. If I go to a site that I'm reluctant to give sensitive payment info to, which these days may be just about all of them, I will checkout with PayPal.

particleman

5+ Year Member



 
Msg#: 3542372 posted 2:39 am on Jan 15, 2008 (gmt 0)

We run an impulse buy site, B2C, we get alot of paypal sales. 20% or so. It is fair to say that without paypal we would loose some of those. Based on the amount of people I see use paypal (including myself) I wouldn't put up an ecommerce site without paypal as an option.

mangotude

10+ Year Member



 
Msg#: 3542372 posted 5:21 pm on Mar 3, 2008 (gmt 0)

Would just like to add something to this - it may depend on the market. Tried taking off a site which has international sales - conversion rate dropped in US but rose in UK.

piatkow

WebmasterWorld Senior Member piatkow us a WebmasterWorld Top Contributor of All Time 5+ Year Member



 
Msg#: 3542372 posted 10:12 am on Mar 5, 2008 (gmt 0)

It may be a peculiarly English view but I tend to agree with Essex Boy. Paypal still says to me that the vendor isn't reliable enough to get a "proper" merchant account.

BeeDeeDubbleU

WebmasterWorld Senior Member beedeedubbleu us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 3542372 posted 10:34 am on Mar 5, 2008 (gmt 0)

Paypal still says to me that the vendor isn't reliable enough to get a "proper" merchant account.

You mean like Brett? ;)

Wlauzon

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3542372 posted 2:01 am on Mar 6, 2008 (gmt 0)

It may be a peculiarly English view but I tend to agree with Essex Boy. Paypal still says to me that the vendor isn't reliable enough to get a "proper" merchant account.

Hmm.

We take PP, VISA, MC, AMEX, Discover, wire transfers, online checks, Optima, and a couple of others.

So tell me, how do we go about getting a "proper" account?

BananaFish

5+ Year Member



 
Msg#: 3542372 posted 3:03 am on Mar 6, 2008 (gmt 0)

It may be a peculiarly English view but I tend to agree with Essex Boy. Paypal still says to me that the vendor isn't reliable enough to get a "proper" merchant account.

Wake up limeys, it's not 1999 anymore. Paypal has been offering "proper" merchant accounts for almost 3 years now.

mangotude

10+ Year Member



 
Msg#: 3542372 posted 2:47 pm on Mar 6, 2008 (gmt 0)

It's not the point though. If you're selling to English customers, and they feel it's amateur, then it 'is'.

It simply is not regarded the same way in the UK - it's essentially wedded far more to ebay and the like, and so that should be taken into account.

BeeDeeDubbleU

WebmasterWorld Senior Member beedeedubbleu us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 3542372 posted 2:58 pm on Mar 6, 2008 (gmt 0)

What you say may be correct and you have tested it but I am in the UK and I have noticed that more and more of my enquiries are coming from people who want to use Paypal as a payments method.

This 42 message thread spans 2 pages: 42 ( [1] 2 > >
Global Options:
 top home search open messages active posts  
 

Home / Forums Index / WebmasterWorld / Ecommerce
rss feed

All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
Home ¦ Free Tools ¦ Terms of Service ¦ Privacy Policy ¦ Report Problem ¦ About ¦ Library ¦ Newsletter
WebmasterWorld is a Developer Shed Community owned by Jim Boykin.
© Webmaster World 1996-2014 all rights reserved