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Boost sales by adding paypal in addition to credit cards?



6:43 pm on Nov 4, 2005 (gmt 0)

10+ Year Member

We have been accepting Visa, MC, Amex for about 2 years through a normal merchant account for a fast moving B2C service, average sale around $20. Have any of you started with a credit-card only shop and then added Paypal? If so, did it have a noticeable improvement on sales/conversions?

Most of the postings I've read are with people who start with Paypal and then later augment or replace that with a merchant account...


6:55 pm on Nov 4, 2005 (gmt 0)

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

I found adding Paypal invited orders from barrack room lawyers, you know the sort. I know my rights blah blah.

As well as old grannys using teh web for the first time.

Im sure there are others who'd disagree.


7:15 pm on Nov 4, 2005 (gmt 0)

10+ Year Member

We added PP after our VISA/MC to capture some additional sales from people with a Paypal cash flow and to additionally capture some lost sales for not having Amex due to their high discount rates.

PP added about 5% to our sales, we still kept losing Amex clients anyhow.

We just signed up today for Amex because they are aggressively wooing the market - we received a 2.95% discount with a 0.12 per transaction charge... we couldn't resist.


1:09 am on Nov 19, 2005 (gmt 0)

10+ Year Member

Very interesting Question ..........
Since I have direct experience of this issue and been mulling it over for a while .

Delighted and wonderfully happy with worldpay for 4/5 years ..but they dont take AMEX ...got hit with a bolt of lighting in summer and i noticed/remebere\d that paypal accept amex and might somehow create a few extra sales if we could say we took it.

So set it up ...(ceveat here .. paypal to test your need to set up the SANDBOX testing facilty and that takes TIME .)

Gave customers option of paying with paypal in checkout and had first order within 20 mins . Now actively advertise in site we happy to take paypal or you can pay by worldpay .

Ok that seemed great , but now with months passed I can reflect with time .
1)I could not say their has been increase in orders, however it has been a tough six months overall.
2)I would say that accepting paypal in general decreases average spend... I ** think ** people have a tendancy to work to what cash they have in paypal account.
3) i **** KNOW **** that accepting paypal increases customer returns from less than 1% worldpay customers to 15% YES 15% of monthly gross checkout value

yes thats what i have been mulling over in particular ... WHY ... this trend has been going on now for 5 months . i only spotted this a few weeks ago when accountant was in and we had figures out . A high refund rate for paypal customers only last month made me look back ove last few months then i got intrigued and looked back to when we started accepting paypal in summer

Almost consistently every month since the summer we have been issuing 15% refunds of the total months sales back to cusotmers . IE if we took $1000 of sales one month , $150 would be refunded back that month for cusotmer returns . With Worldpay its less than 1%

intrguing , very intriguing

tried to identify WHY but not put my finger on it yet ..might be somehting to do with paypal cusitmers being largly EBAY customers and they are maybe happier maybe more confidetn in dealing with sending goods ..either back or to their own customers

Might start this one in its on thread eh

ANyway bottom line ... i think we will be dumpoing it after Xmas , seems liek a lot of negs to it and not any RECOGNISABLE positives



1:18 am on Nov 19, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member

We maybe get 1% increase in sales, however we found that paypal people are generally a pain in the back side.

I don't know its a statistical anomality, but if someone complains, its ussally a paypal customer.

If it keeps up, we will drop the paypal service.


1:27 am on Nov 19, 2005 (gmt 0)

10+ Year Member

We started with Visa and MC through AuthNet. After a few months we decided to add PayPal just to see...

Our first PP order came in the next day - and quickly went to about 25 - 30% of our sales. Can't positively say if the sales went up due to adding PayPal. (We have been experiencing a steady increase in sales before and since.) I know I wouldn't get rid of it now though!


2:01 am on Nov 19, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member

I know that I am not a statistically significant sample, but given a choice of payment methods, I will always choose PayPal, and all other things being equal I would choose to buy from a site that accepted it rather than one that didn't. I just find it handy and quick.

And I am neither an old granney new to the net or a pain in the neck - tthough I suppose the latter is not for me to say.


3:08 am on Nov 19, 2005 (gmt 0)

10+ Year Member

about 10% of our online sales are made using Paypal. I do agree that they're definately the orders of low value though. We'll keep it, i see the payment options as a benefit


6:55 am on Nov 19, 2005 (gmt 0)

10+ Year Member

Being a PP person myself, I would have been lost without in regards to buying on the web since I don't have a credit card.

Once I get my online store open, I will offer PayPal. However, reading the above posts, I will keep an eye out for high returns of goods from PP customers. If that becomes the case for me, then I will have to consider dropping PP.

I am not familiar with WorldPay, though have heard of it. I have accounts with PP, Stormpay, INTGold, and e-gold (which I rarely use at all). However, I haven't found a cart which supports the latter three for the most part.

I guess I'm adding PP due to the fact that I'm afraid I will lose potential sales from the millions of PP users.

Decisions, decisions


7:57 am on Nov 19, 2005 (gmt 0)

10+ Year Member

Delighted and wonderfully happy with worldpay for 4/5 years ..but they dont take AMEX ...

you can take amex through worldpay - you need to call amex on 0800 339911 and set up an account with them

likewise diners club - check their website


1:43 pm on Nov 19, 2005 (gmt 0)

10+ Year Member

About 10% of our customers pay with PayPal.

I have noticed no difference in order size or return rates with PayPal customers versus Visa/MC.

Cannot say whether PayPal has increased our sales though - we have offered it alongside credit cards since we opened.


3:41 am on Nov 20, 2005 (gmt 0)

10+ Year Member

Well, here's a question then....

I will be using x-cart shopping cart.

Is there a way within x-cart, or an outside program, to separate and see/track which form of payment is being used most often?

I'll be opening an ecommerce site for the first time, so I'm gleeming a lot of info *wink*


6:06 pm on Nov 20, 2005 (gmt 0)

WebmasterWorld Senior Member lorax is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month

X-Cart tracks the method of payment. All you need to do is to write a custom query to pull that information from the db.


4:16 am on Nov 21, 2005 (gmt 0)

10+ Year Member

Thanks lorax.

I'll ask my webmaster neighbor on how to do that once I'm in a position to do so. I figured there must be a way since it's something most (if not all) biz owners would want to know about.


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