aleksl - 6:42 pm on Jan 20, 2012 (gmt 0)
tangor: Only governments can TAX. Businesses charge fees/rates for service done. Change the language and the discussion will go more smoothly. Continuing to call transaction fees a TAX will win no supporters for lower FEES.
I am using language to show that there's no difference. If it is based on REVENUE (i.e. 2% of each transaction is fee based on REVENUE), it is not a "fee", it is a tax. Fee is a fixed amount. If I have to pay it or basically close my business, it is semantical trickery to call it "fee", it is a tax.
1. A fixed sum charged, as by an institution or by law, for a privilege:
2. A charge for professional services: a surgeon's fee.
3. A tip; a gratuity.
4. Law An inherited or heritable estate in land.
If your transaction fees are costing the same or near same as shipping costs, then your business plan is flawed, you do not have sufficient mark up in product.
I don't think you are correct. Here's a quote:
Warehousing and shipping runs around 10 percent of costs for the average ecommerce business," said Nate Gilmore, VP of marketing and business development for Shipwire.
So it is entirely possible to have 8% warehouse cost and 2% shipping cost and be an absolutely AVERAGE ecommerce business.
sun818, I agree with you, we do provide PayPal. We also support checks, money orders and wire transfers. We are also looking for other alternatives to Credit Cards.