PayPal has a big sales force that markets the PayPal platform to stand-alone sites. eBay's concern about google has little to do with the use of checkout on eBay; Meg is worried that checkout will capture ALL of the stand-alone biz.
Corp revenues from the "auction venue" peaked a long time ago. PayPal was the only solid bright-spot for expansion into markets off-eBay. That expansion is now probably in the toilet. SKYPE will not save them either.
eBay's stock price could go back to $35.00 on its way to $11.00.
storm
Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
<< <i>Profit is part of Gross. Profit is not net. Net is what you paid for the item. >>
Huh? Profit and net are the same thing. Profit is what is leftover after paying all expenses. Net is not what you paid for an item. What you paid for an item is COG or Cost Of Goods. For eBay to only be taking 5-10% of your "profits" as you stated, your COG would have to be right around zero.
Russ, NCNE >>
Yes, Russ, you are correct. In the middle of typing that I got interrupted and lost my train of thought. Net is profits. In no way was I attempting to engage you in an argument.
For eBay and PayPal to be only taking 5% of my profits, my profits would have to be near 100%, which is what I was trying to get across. Many physical stores have 100%-500% mark up on a product. I try to do the same. I don't always succeed, but since I went to BIN only, I have cut my losses and raised my profits. Granted, about 5% of the items I put up don't sell the first time, but then I lower the price and try again.
Jonathan
I have been a collector for over mumbly-five years. I learn something new every day.
<< <i>I've been selling with eBay for years. They have NEVER taken 65% of my profits. Perhaps you need to sell your items for more money if you expect higher profits? The most they take of my profits is 5-10% together. >>
If you wind up with $90 instead of $100 on a coin you bought for $80, they have taken 50% of your profit even though they've taken only 10% of revenue.
If eBay and PayPal fees are only taking 5-10% of your profit, then you have one helluva margin. >>
NCLT Need I say more?
I have been a collector for over mumbly-five years. I learn something new every day.
<< <i>The most they take of my profits is 5-10% together. >>
Are you confusing profit, (net), with revenue, (gross)?
Russ, NCNE >>
No, I am not confusing. I don't have the numbers in front of me at work, but I know that they don't take 65% of my profits. Of course, the mint stuff that I sell for 100% profit because crazy people will pay it makes my profits pretty high. If someone is only making $1.00 profit (not even worth selling on eBay if so) then I could seen OVER 65% of the profits going to PayPal and eBay. I've gotten pretty good over the years at knowing what will earn ME the highest profits and I stick to selling that.
Profit is part of Gross. Profit is not net. Net is what you paid for the item. If I paid $10.00 and sell for $15.00, $5.00 is my profit, $10.00 is my net and $15.00 is my gross. For that item, eBay and PayPal will take a percentage of my gross. That will be 5.25% to eBay for Final Value Fee which is $.79, which is 16% of the profit. Say the buyer then uses PayPal to pay, PayPal takes 2.9% + $0.30 = $0.74, which is 15% of the profit. So, the amount taken all together is 31%. Far from the 65% the OP mentioned. Perhaps he was just estimating and got it wrong. I just think he probably didn't make much profit and should have sold at a higher price.
I don't even fool with auctions anymore. I put a BIN price up there and usually sell it within a few days. I've lost too much money on auctions where the fees DID equal or exceed my profits.
Jonathan >>
Don't forget listing fees. That is pretty low for store inventory but can add up quickly for regular auctions.
If you sell an item for $100 that you paid $90 for & all eBay/PP fees are $5, then yes, they "took" 50% of your (GROSS) profit.
Your GROSS margin would be 10% & your NET margin would be 5%. Your gross markup would be (100/90-1)%.
By the same token, if you sold it for $90 but paid $100 (if same fees) then 150% of your "profit" would be gone!
BUT
The percentage of your "profits" are sort of irrelavent and driven by factors outside of eBay's control (i.e. did you buy right/wrong, image/market well, etc.)
Fees as a % of GROSS sales is the only real measure you should be concerned with - IMHO
<< <i>For eBay and PayPal to be only taking 5% of my profits, my profits would have to be near 100%, which is what I was trying to get across. Many physical stores have 100%-500% mark up on a product. >>
That still doesn't work. It's mathematically impossible for it to be as low as 5% unless you are paying nothing for the items you sell. Even then it wouldn't be that low unless the buyer did not use PayPal. Let's look at a 100% markup on a $100 item:
Item sale price: $200. Profit: $100.
Insertion fee: .95 Final value fee: $6.56 PayPal Fee: $6.1
Total eBay costs: $13.61, or 13.61% of your profit.
"You can still allow people to pay on your website, correct? Can't someone just set up their website to accept Google Checkout as an option? "
//////////////////////////////////////////
eBay will cancel the offending listing. They will probably keep the listing fees.
Again, the current google checkout platform is not suited for seamless-use on eBay. google has designed their thing to work "off-ebay," NOT "on-ebay."
Using the current configuration of google on eBay would force the buyer to leave the eBay site. That does not make for "prompt payments." The eBay checkout system encourages fast payments via PayPal because it is EASY for buyers; the current google would not be easy for buyers on eBay. WAY too many "extra steps required."
Unless google checkout became fully integrated with eBay's platform, it would never be a viable substitute for PayPal ON eBay.
google did NOT build their thing to compete with PayPal ON eBay. They built it to compete with PayPal outside of eBay.
storm
Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
<< <i>Again, the current google checkout platform is not suited for seamless-use on eBay. google has designed their thing to work "off-ebay," NOT "on-ebay." >>
A handful of coding changes and it would integrate quite easily. But, eBay would have to allow API access. I'm sure that if eBay decided to allow that, Google would quickly make those changes.
<< <i>google did NOT build their thing to compete with PayPal ON eBay. They built it to compete with PayPal outside of eBay. >>
This is what's been stated for public consumption, but you can bet your ass that if eBay offered up the chance to integrate, Google would be on it like Rosie on a sweet roll. No way they'd pass up that kind of potential revenue stream.
And. no way eBay is going to allow that to happen.
I am looking through the google 8Ks on YAHOO. It is pretty hard to tell "exactly" what their revenues are from eBay "click-thrus," but I am pretty sure it is HUGE money.
eBay is likely one of google's largest paying customers.
storm
Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
Comments
the PayPal platform to stand-alone sites.
eBay's concern about google has little to
do with the use of checkout on eBay; Meg
is worried that checkout will capture ALL of
the stand-alone biz.
Corp revenues from the "auction venue"
peaked a long time ago. PayPal was the
only solid bright-spot for expansion into
markets off-eBay. That expansion is now
probably in the toilet. SKYPE will not save
them either.
eBay's stock price could go back to $35.00
on its way to $11.00.
storm
<< <i>
31% of your profits is quite a bit. >>
I agree. That's why I try to keep my profits around 100%. But on some items, I figure some money is better than no money.
Jonathan
<< <i>
<< <i>Profit is part of Gross. Profit is not net. Net is what you paid for the item. >>
Huh? Profit and net are the same thing. Profit is what is leftover after paying all expenses. Net is not what you paid for an item. What you paid for an item is COG or Cost Of Goods. For eBay to only be taking 5-10% of your "profits" as you stated, your COG would have to be right around zero.
Russ, NCNE >>
Yes, Russ, you are correct. In the middle of typing that I got interrupted and lost my train of thought. Net is profits. In no way was I attempting to engage you in an argument.
For eBay and PayPal to be only taking 5% of my profits, my profits would have to be near 100%, which is what I was trying to get across. Many physical stores have 100%-500% mark up on a product. I try to do the same. I don't always succeed, but since I went to BIN only, I have cut my losses and raised my profits. Granted, about 5% of the items I put up don't sell the first time, but then I lower the price and try again.
Jonathan
<< <i>
<< <i>I've been selling with eBay for years. They have NEVER taken 65% of my profits. Perhaps you need to sell your items for more money if you expect higher profits? The most they take of my profits is 5-10% together. >>
If you wind up with $90 instead of $100 on a coin you bought for $80, they have taken 50% of your profit even though they've taken only 10% of revenue.
If eBay and PayPal fees are only taking 5-10% of your profit, then you have one helluva margin. >>
NCLT Need I say more?
<< <i>
<< <i>
<< <i>The most they take of my profits is 5-10% together. >>
Are you confusing profit, (net), with revenue, (gross)?
Russ, NCNE >>
No, I am not confusing. I don't have the numbers in front of me at work, but I know that they don't take 65% of my profits. Of course, the mint stuff that I sell for 100% profit because crazy people will pay it makes my profits pretty high. If someone is only making $1.00 profit (not even worth selling on eBay if so) then I could seen OVER 65% of the profits going to PayPal and eBay. I've gotten pretty good over the years at knowing what will earn ME the highest profits and I stick to selling that.
Profit is part of Gross. Profit is not net. Net is what you paid for the item. If I paid $10.00 and sell for $15.00, $5.00 is my profit, $10.00 is my net and $15.00 is my gross. For that item, eBay and PayPal will take a percentage of my gross. That will be 5.25% to eBay for Final Value Fee which is $.79, which is 16% of the profit. Say the buyer then uses PayPal to pay, PayPal takes 2.9% + $0.30 = $0.74, which is 15% of the profit. So, the amount taken all together is 31%. Far from the 65% the OP mentioned. Perhaps he was just estimating and got it wrong. I just think he probably didn't make much profit and should have sold at a higher price.
I don't even fool with auctions anymore. I put a BIN price up there and usually sell it within a few days. I've lost too much money on auctions where the fees DID equal or exceed my profits.
Jonathan >>
Don't forget listing fees. That is pretty low for store inventory but can add up quickly for regular auctions.
Your GROSS margin would be 10% & your NET margin would be 5%. Your gross markup would be (100/90-1)%.
By the same token, if you sold it for $90 but paid $100 (if same fees) then 150% of your "profit" would be gone!
BUT
The percentage of your "profits" are sort of irrelavent and driven by factors outside of eBay's control (i.e. did you buy right/wrong, image/market well, etc.)
Fees as a % of GROSS sales is the only real measure you should be concerned with - IMHO
<< <i>For eBay and PayPal to be only taking 5% of my profits, my profits would have to be near 100%, which is what I was trying to get across. Many physical stores have 100%-500% mark up on a product. >>
That still doesn't work. It's mathematically impossible for it to be as low as 5% unless you are paying nothing for the items you sell. Even then it wouldn't be that low unless the buyer did not use PayPal. Let's look at a 100% markup on a $100 item:
Item sale price: $200.
Profit: $100.
Insertion fee: .95
Final value fee: $6.56
PayPal Fee: $6.1
Total eBay costs: $13.61, or 13.61% of your profit.
Russ, NCNE
Can't someone just set up their website to accept Google
Checkout as an option? "
//////////////////////////////////////////
eBay will cancel the offending listing. They will probably
keep the listing fees.
Again, the current google checkout platform is not suited
for seamless-use on eBay. google has designed their
thing to work "off-ebay," NOT "on-ebay."
Using the current configuration of google on eBay would
force the buyer to leave the eBay site. That does not make
for "prompt payments." The eBay checkout system encourages
fast payments via PayPal because it is EASY for buyers; the
current google would not be easy for buyers on eBay. WAY
too many "extra steps required."
Unless google checkout became fully integrated with eBay's
platform, it would never be a viable substitute for PayPal
ON eBay.
google did NOT build their thing to compete with PayPal
ON eBay. They built it to compete with PayPal outside of
eBay.
storm
<< <i>Again, the current google checkout platform is not suited
for seamless-use on eBay. google has designed their
thing to work "off-ebay," NOT "on-ebay." >>
A handful of coding changes and it would integrate quite easily. But, eBay would have to allow API access. I'm sure that if eBay decided to allow that, Google would quickly make those changes.
<< <i>google did NOT build their thing to compete with PayPal
ON eBay. They built it to compete with PayPal outside of
eBay. >>
This is what's been stated for public consumption, but you can bet your ass that if eBay offered up the chance to integrate, Google would be on it like Rosie on a sweet roll. No way they'd pass up that kind of potential revenue stream.
Russ, NCNE
///////////////////////////////////////////////////
And. no way eBay is going to allow that to happen.
I am looking through the google 8Ks on YAHOO. It
is pretty hard to tell "exactly" what their revenues
are from eBay "click-thrus," but I am pretty sure it
is HUGE money.
eBay is likely one of google's largest paying customers.
storm
<< <i>And. no way eBay is going to allow that to happen. >>
Likely true. And, you're right that Google must tread lightly since eBay spends big AdWords bucks.
Russ, NCNE
Maybe, but that would open the door for every hacker on both sides of the Mississippi.
If Google Payments were allowed, how about JoesDiscountPaymentService? i.e. which is credible, which is not. And who decides?
Welcome to the Wild West.
Dave