Something to think about with regard to paypal
nam812
Posts: 10,586 ✭✭✭✭✭
Maybe some of you have thought about this, or maybe not, but I thought I'd put this out there.
I often hear and read people (even those very experienced with ebay and paypal) saying things like "and don't forget paypal's 3%." For low dollar sales paypal's cut is much higher than 3% because of the 30 cents per transaction fee. For example:
Sell a $2.50 item on eBay and paypal gets $0.37 = 14.8%
Sell a $5.00 item on eBay and paypal gets $0.45 = 9%
Sell a $10.00 item on eBay and paypal gets $0.59 = 5.9%
Sell a $25.00 item on eBay and paypal gets $1.03 = 4.1%
Sell a $50.00 item on eBay and paypal gets $1.75 = 3.5%
There are a lots of 3.4, 3.3, 3.2, and 3.1s after a $50 item, but it isnt until you sell a $300 item that paypal gets exactly 3%.
I have been doing a lot of fixed sales at $10.85 lately so paypal is taking 5.6% from me which really sucks, but I did all the calculations before I made the listing, and found I could live with the end resulting profit after eBay and paypal fees.
I understand that most of us here are not selling $2.50 and $5.00 items, but I'll bet that there are a lot of $10.00 sales that are happening without people realizing paypal's cut is just about 6%.
I often hear and read people (even those very experienced with ebay and paypal) saying things like "and don't forget paypal's 3%." For low dollar sales paypal's cut is much higher than 3% because of the 30 cents per transaction fee. For example:
Sell a $2.50 item on eBay and paypal gets $0.37 = 14.8%
Sell a $5.00 item on eBay and paypal gets $0.45 = 9%
Sell a $10.00 item on eBay and paypal gets $0.59 = 5.9%
Sell a $25.00 item on eBay and paypal gets $1.03 = 4.1%
Sell a $50.00 item on eBay and paypal gets $1.75 = 3.5%
There are a lots of 3.4, 3.3, 3.2, and 3.1s after a $50 item, but it isnt until you sell a $300 item that paypal gets exactly 3%.
I have been doing a lot of fixed sales at $10.85 lately so paypal is taking 5.6% from me which really sucks, but I did all the calculations before I made the listing, and found I could live with the end resulting profit after eBay and paypal fees.
I understand that most of us here are not selling $2.50 and $5.00 items, but I'll bet that there are a lot of $10.00 sales that are happening without people realizing paypal's cut is just about 6%.
0
Comments
HOW, or maybe WHY is a better word to use, can some people sell certain items on ebay?
The item I am thinking of now is a loupe with a light that I bought about 3 years ago. I paid less than $5 and that included free shipping from HongKong. How much friggen money can this seller be making on this item when you count ebay fees, paypal fees, shipping fees & cost of item? And if you tell me he's selling a massive amount of small items, than you got to add in some payroll. Oh, by the way, the light on the loupe still works!
Looks like I picked the wrong week to quit sniffing glue...
ebay id Duffs_Dugout
My Ebay Auctions
<< <i>Looks like I picked the wrong week to quit sniffing glue... >>
Doug
Liquidating my collection for the 3rd and final time. Time for others to enjoy what I have enjoyed over the last several decades. Money could be put to better use.
<< <i>If you're selling mainly very low value items, Paypal has something called micropayments where you get charged 5% + 5 cents instead of the 2.9% + 30 cents. >>
I'm sorry, who are you again?
<< <i>
<< <i>If you're selling mainly very low value items, Paypal has something called micropayments where you get charged 5% + 5 cents instead of the 2.9% + 30 cents. >>
I'm sorry, who are you again? >>
Levi?
Dodgers collection scans | Brett Butler registry | 1978 Dodgers - straight 9s, homie
<< <i>I'm sorry, who are you again? >>
Your alter-ego. The sane persona.
Dodgers collection scans | Brett Butler registry | 1978 Dodgers - straight 9s, homie
<< <i>Don't forget ebay charges seller's fees on shipping costs as well. >>
This is my personal favorite.
-Brick and mortar.....you've got so many fixed costs. Rent, utilities, insurance? etc.
-And it depends on where you live, but rents just seem to always go up, never down. It'd be interesting if you compared rent prices in major areas over the last 10 years, to ebay or paypal fees.
-Foot traffic at brick and mortar stores....it doesnt seem that great anymore. Again, depends on where you live.
As much as we hate ebay/paypal, I don't think anyone is going to get the critical mass to seriously challenge them in the next 5 years. They're so entrenched, they've got a microsoft like monopoly in online auctions, trading. If someone does eclipse them, they'd be quite a case study in business schools on how you lose such a huge market share.
<< <i>Sounds like collectors need to band together and create a card exchange website with low fees. Cu BST is okay but it would need to include more collectors than just CU forum members. >>
The place already exists
UNISQUARE FREE AUCTION SITE
Unfortunately Ebay has such a grip on people that they are unable to escape it, Regardless of how much the get raped.
The same situation happens with other big Corps. Ebay, PSA, Wal-Mart, McDonalds, Coca-Cola... While not necessarily a good thing,
Brand Name recoginition is a powerful force that often has a brainwashing effect on the masses who use many of these products, regardless
of the cost or quality. Once they planet the seed in your head, Not many are able to ever see clearly enough again to escape it.
Its the Jim Jones effect.
<< <i>
<< <i>Don't forget ebay charges seller's fees on shipping costs as well. >>
This is my personal favorite. >>
Offer free shipping and increase your fixed price by $2
<< <i>
<< <i>
<< <i>Don't forget ebay charges seller's fees on shipping costs as well. >>
This is my personal favorite. >>
Offer free shipping and increase your fixed price by $2 >>
When its all said and done, wouldnt fees be the same? Say 2 exact items sell.
Item a is 10.00 with 2.00 shipping=12.00 or item b is 12.00 free shipping.
Still getting charged for 12.00 or am I missing something?
<< <i>
<< <i>If you're selling mainly very low value items, Paypal has something called micropayments where you get charged 5% + 5 cents instead of the 2.9% + 30 cents. >>
I'm sorry, who are you again? >>
Why do you do this every time Maurice posts? I don't get it.
Anyway, what he said, Paypal has a micropayment option. I have two paypal accounts, one is a micropayment and one is regular. If I list an item that will sell bellow $10, then I set up the listing to receive payment to the micropayment account.
Nearly every cardshop in LA used to overgrade badly. I've seen it referred to here as "old school grading". Basically anything without a crease is ExMt or NearMint and anything with a crease is VG-Ex. TPG along with Ebay put an end to that BS and the few shops that remain were those that always did grade accurately(Notably Burbank Sportscards).
Also, even with fees, Ebay is the most viable way for collectors to quickly sell more expensive items. I'm not a fan of selling cheapo items mostly because its such a hassle to track and package items.
5, 10, 15, 25, 35% are all amounts that are smaller than the discount you'd have to accept by selling to a card shop. Online ads are risky to a significant extent.
Nearly every cardshop in LA used to overgrade badly. I've seen it referred to here as "old school grading". Basically anything without a crease is ExMt or NearMint and anything with a crease is VG-Ex. TPG along with Ebay put an end to that BS and the few shops that remain were those that always did grade accurately(Notably Burbank Sportscards).
>>
It wasn't just LA. Most card shops everywhere overgraded. My collection is full of "mint" cards that would get a 6.5 at best from PSA. I think the grading companies did a lot more than Ebay to get rid of overgrading. They set the standard and ebay gave the access. Without the grading companies, ebay would be full of "mint" cards.
<< <i>Nearly every cardshop in LA used to overgrade badly. I've seen it referred to here as "old school grading". Basically anything without a crease is ExMt or NearMint and anything with a crease is VG-Ex. TPG along with Ebay put an end to that BS and the few shops that remain were those that always did grade accurately(Notably Burbank Sportscards).
>>
It wasn't just LA. Most card shops everywhere overgraded. My collection is full of "mint" cards that would get a 6.5 at best from PSA. I think the grading companies did a lot more than Ebay to get rid of overgrading. They set the standard and ebay gave the access. Without the grading companies, ebay would be full of "mint" cards. >>
There are two local card shops that I frequent and neither deals in graded cards. Both long-time dealers.
I have not bought anything other than supplies or unopened there for years.
They have absolutely NO CLUE how to grade a card. Almost every pre-1980 card in their shop is over-graded
and because they refuse to look at well-graded cards, their mental image of what a near-mint card actually looks
like is forever inaccurate.
DaveB in St.Louis
<< <i>
<< <i>
<< <i>
<< <i>Don't forget ebay charges seller's fees on shipping costs as well. >>
This is my personal favorite. >>
Offer free shipping and increase your fixed price by $2 >>
When its all said and done, wouldnt fees be the same? Say 2 exact items sell.
Item a is 10.00 with 2.00 shipping=12.00 or item b is 12.00 free shipping.
Still getting charged for 12.00 or am I missing something? >>
The $12 item with free shipping will have less fees.
<< <i>$19.99 -- Sold an item w/free shipping
($0.05) -- eBay insertion fees
($2.40) -- eBay FVF
($0.88) -- Paypal fees
($4.75) -- Cost of postage
($0.05) -- Cost of label
($0.40) -- Cost of packing #1
($0.55) -- Cost of packing #2
($8.07) -- Accounted cost of product from BO >>
Paypal was 4.4% here.
<< <i>Why do you do this every time Maurice posts? I don't get it........... >>
Don't beat yourself up, not everyone gets everything.
<< <i>
<< <i>Don't forget ebay charges seller's fees on shipping costs as well. >>
This is my personal favorite. >>
You can thank all those sellers that did stuff like $1 cards with $10 shipping for this one.
Just like you can thank sellers who held feedback hostage or retaliated unfairly for sellers not being able to leave feedback.
<< <i>
<< <i>
<< <i>If you're selling mainly very low value items, Paypal has something called micropayments where you get charged 5% + 5 cents instead of the 2.9% + 30 cents. >>
I'm sorry, who are you again? >>
Why do you do this every time Maurice posts? I don't get it.
>>
Because he doesnt know something...
Looking for 1970 MLB Photostamps
- uncut
Positive Transactions - tennesseebanker, Ahmanfan, Donruss, Colebear, CDsNuts, rbdjr1, Downtown1974, yankeeno7, drewsef, mnolan, mrbud60, msassin, RipublicaninMass, AkbarClone, rustywilly, lsutigers1973, julen23 and nam812, plus many others...
Maybe he is Levi. If so great.
I for one appreciate having card experts that share their knowledge.
Anyone who attempts to question Maurice on cards has been proven wrong.
I find it comical that guys that are worried about a few bucks in PayPal fees are throwing shots at what they think is Levi from 707 sports.
Nam you are concerned about $2 yet you are trying to take shots at a guy that is selling cards for thousands.
The joke is on you.
<< <i>Maurice whomever he maybe has proven to be a tremendous asset to this board.
+1
Maurice is like EF Hutton, when he speaks, you better listen because you will probably learn something!
He may be a little rough, but usually very acurate.
<< <i>.....I find it comical that guys that are worried about a few bucks in PayPal fees are throwing shots at what they think is Levi from 707 sports.
Nam you are concerned about $2 yet you are trying to take shots at a guy that is selling cards for thousands......... >>
There must be a silicone leak somewhere in your house because it appears to have dulled your comprehension skills. You mistakenly took worry and concern away from my OP instead of knowledge. My OP was made to help sellers tighten up their business models. At least a few in this thread understood that.
As for maurice, all I did was ask him/her who he/she is. I apologize for not being intrigued enough about you to ask you the same question.
<< <i>
<< <i>
<< <i>Don't forget ebay charges seller's fees on shipping costs as well. >>
This is my personal favorite. >>
Offer free shipping and increase your fixed price by $2 >>
Ding ding ding! There ya go!
I always figure in these costs before I set my price.
Good research, Nick.
Shane
+1. The OP makes a very astute point that is especially valuable to those who use eBay to run a for-profit business.
However, not everyone on eBay sells strictly from a profit-making standpoint. Many like me (I dare say, probably the majority of card sellers) use eBay as a tool to the set building process; we buy lots/partial sets at a decent price or make bulk grading submissions of raw cards and sell what we don't need to lower the overall cost of set building. It's a hobby for me, and I don't want to ruin it by running my hobby like a business. Yes, I could be more efficient, but the effort it would take would not be worth it to me; in other words, I can attain my goals under the current fee structure. Until that changes, I'll continue to use eBay.
<< <i>......The OP makes a very astute point that is especially valuable to those who use eBay to run a for-profit business.
However, not everyone on eBay sells strictly from a profit-making standpoint. Many like me (I dare say, probably the majority of card sellers) use eBay as a tool to the set building process; we buy lots/partial sets at a decent price or make bulk grading submissions of raw cards and sell what we don't need to lower the overall cost of set building. It's a hobby for me, and I don't want to ruin it by running my hobby like a business. Yes, I could be more efficient, but the effort it would take would not be worth it to me; in other words, I can attain my goals under the current fee structure. Until that changes, I'll continue to use eBay. >>
Nick, thanks, and I too use ebay along the same lines as you. You are correct that my OP is most valuable to those selling on eBay as a tight margin business, but it is good knowledge for those that use eBay like you (and me) as well because you never know when you might want to step it up a bit. We can't all be rich and own Florida like DPeck.