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Adding Google Checkout didn't cost us anything (no setup or monthly fees) and the transaction fees are economical so it was a no brainer. I didn't expect much more than 4-5% useage as G has a looong way to go to reach PayPal's saturation.
4% of sales is not a lot but anybody in business would love a 4% increase in sales right now.
[edited by: T_Miller at 2:42 pm (utc) on Jan. 23, 2009]
DBlack..wow ...30% paypal? What is your average ticket? Is it mainly via Ebay?
No Ebay at all. I'm not saying there aren't some fine sellers on Ebay, but it is a real snakepit if one isn't careful. Especially shipping/handling profiteering. We run a number of niche sites; small market stuff. Each site does a nice, decent volume and net. They are all run under one LLC, but each has its own merchant account. Are fees are based strictly on ticket average. We have a strong relationship with our bank and pay nothing but the discount rate set for each site.
We don't like micro-sales; too much trouble. The only way to make any money is to cheat the customer on shipping/handling or have a minimum order. We always go the minimum order route and try for the primary products to be close to or exceed our minimum order so that the problem aspect of that policy does not come up very often. People understand our explanation that an order has to be X dollars to be worth taking and our 'actual cost, no fee' shipping policy seals the deal. Our smallest site has a $20 minimum. Sites range from average ticket of $35 to $150.
The advantage that many people love with PayPal is that they don't give their CC information to every website that they do business with. They give it to PayPal only. A lot of people really like that. (One downside is those people that are not using an instant payment method and use an e-check. This means they lose the same day shipping that we promote. We don't ship until the funds clear and that can take several days or more. We are very upfront about this and probably 98% of payments are instant so it works out okay.)
No matter the site or ticket average, the PayPal user is always, on average, the smallest customer.
I am not a PayPal fan - but too many people are. We have to use them.
Things PayPal says to me personally:
I'm a brand new business
I won't be around in 5 years
I'm overseas or working from a garage
Things are not what they seem
You'll never be able to trace the money
My stuff is Ebay or flea market quality
If it is your only accepted method of payment - maybe not unfair to read negative connotations. No different than that I read negative connotations into some PayPal customers (cheapskates:) but PayPal is way too much money on the table to not offer the option to my customers. I really prefer that they give me a CC because it costs me a lot less than PayPal, but I've got to offer it. It is business that I lock up and don't risk losing to a competitor that offers a PayPal option.
Despite the trouble I've had in setting it up (no telephone support) and some confusion over canceled orders (there has to be a better way!) this is now working.
And we JUST got the "checkout badges" on our AdWords account - so I'm watching to see if we see an increase in CTR or other stats.
From first order to the awarding of the badge took just over a week.
Do others experience value in the Google Checkout Badge?