Forum Moderators: buckworks
[internetretailer.com...]
PayPal’s revenue increase includes a 49% year-to-year rise in revenue from payment transactions processed for merchants other than eBay.com, a spokeswoman says. PayPal now provides payment services for more than 1 million merchants worldwide, the company reports.
tipped by: Andy Bourlands MarketingWonk [marketingwonk.com]
If you buy a car with Paypal and it arrives with no engine, do you have any recourse? Major credit cards say I do!
Well it won't cover something as expensive as a car, but any physical goods you buy with PayPal can have a guarantee up to $1000 for a trivial fee [paypal.com]. The bonus is that the vendor is not held responsible for claims, unlike chargebacks, etc.
If you are buying/selling off eBay, the "PayPal Buyer Protection Program [ebay.com]" allows sellers with a minimum of 50 feedback and a 98% positive feedback rating, to offer buyers $500 in coverage, with no service fee at all for either party.
oh and by the way:
Can I offer a partial refund to a buyer?
Yes, but only after a buyer files a claim that is processed through PayPal Buyer Protection. If a buyer files a claim covered by PayPal Buyer Protection, you can offer a partial refund to try to close the claim...
and no, I don't have any relationship with PayPal or eBay, just a fan :)
There is very little excuse(depends on what you're selling) not to include a paypal option in addition to your standard billing options. There ARE people who prefer paypal, and not offering that as an option is just naive.
Very scary though. I really hope Amazon hurries up and sets up their version of PayPal .. if not, at this rate, we may end up with a monopoly.
Since v6.1, Actinic has offered PP as a standard payment method in the UK version, and it will appear in the US release as of v7. That sort of deal is bound to have an effect in the long term
Where we offer it side-by-side with traditional merchant accounts, we tend to get between 1-2% of orders by PayPal. On some sites (where customers may have originally found us through eBay auctions) the number can near 10%. In addition, the PayPal customers seem to be more regular and loyal purchasers.
MQ
I really hope Amazon hurries up and sets up their version of PayPal
Where we offer it side-by-side with traditional merchant accounts, we tend to get between 1-2% of orders by PayPal. On some sites (where customers may have originally found us through eBay auctions) the number can near 10%.
Argh! Really? Those figures are disappointing. I was planning on using PayPal as my only payment method. I guess that would slaughter my surfer-purchaser conversion rate (is there an abbreviation for that?)!
This means another x number of days setting up a merchant account and programming it in.
By the way mquarles, what sector is that in, if you don't mind me asking? Are rather, do you think your customers are completely average across the board, or perhaps specialised in some way?
surfer-purchaser conversion rate (is there an abbreviation for that?)!
conversion rate
what sector is that in, if you don't mind me asking
Have done it in office supplies and wine accessories. Not in my other niches. Reasonably representative of the whole market if you consider the two together.
Those figures are disappointing . . . I guess that would slaughter my surfer-purchaser conversion rate
I don't know about "slaughter" but I do think that PayPal-only would lower it. The biggest issue in my mind is that the signup process for folks that do not already use PayPal is a bit more onerous than it needs to be, so it will increase abandonment. There is also a small, but not insignificant, contingent of folks out there who hate PayPal and won't ever use it (as you see with any large company).
Also, if you have any corporate customers, they may not want a PayPal account in their company's name. Too much of an opportunity for abuse, methinks.
I think PayPal-only is fine to start out (testing without commitment and without fees is ALWAYS smart), but I would look at a merchant account once you're going.
MQ
I use Nochex + MoneyBookers - with neither of them is it possible for anybody do to do a chargeback against me. When I receive payment I know I am alright to send product. With paypal, I have to send via very expensive online trackable Express mail instead of plain registered mail (you sign for package but no online tracking) else they won't cover me against eCheck / balance transfer fraud. With credit card payments, I have no recourse whatsoever - why cause paypal doesn't bother to verify anybody's identity. To register a credit card with moneybookers you have to send all kinds of documents to them to make sure that you are the true owner of that card. They then guarantee you against chargebacks made with those registered cards.
You must be in a sellers market to be able to demand that sort of thing from your customer.
why cause paypal doesn't bother to verify anybody's identity.
actually paypal does have a credit card verification process, but it takes 2 or 3 days for it to work and in the mean time they allow the users to carry on with their unverified credit card for purchases under $100. Doesn't really help the vendor of small items like me.
PayPal’s revenue increase includes a 49% year-to-year rise in revenue from payment transactions processed for merchants other than eBay.com, a spokeswoman says."
So if non-eBay revenue were up 49% while total revenue was up 85% this means that eBay transactions were up substantially more than 85%. So eBay transactions are becoming a larger proportion of total transactions and Paypal is becoming more eBay oriented.
My only complaint about PayPal is that I cannot do a partial refund in any useful way. That means I effectively eat the outbound shipping on a full return, and I end up paying the discount and transaction fees twice on any partial return.
On the other hand, we do a fair amount of repeat business with our PayPal customers. I think there is a certain subset of the market that really likes to use PayPal, especially for the type of goods that I sell.
I remember when my wife was fairly active on eBay, selling off miscellaneous bits of detritus which had accumulated around the house. She tended to view that money as somehow separate and distinct from money in our regular bank accounts, and she would use it to buy items for herself without feeling guilty about blowing the budget. When her PayPal account started running low, she'd start hunting for more stuff around the house to sell.
Its also worth noting that I don't advertise that I accept PayPal. The only way to find out is to go all the way through the checkout process until the last page, when you are offered a choice of credit card or PayPal. I wonder what would happen if I made it more obvious that I accepted it...
To lift limits on your account you need to send them an ID/passport copy + proof of address. Quite reasonable in my opinion.
