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Re: [OM] Additional fee for using PayPal

Subject: Re: [OM] Additional fee for using PayPal
From: andrew fildes <afildes@xxxxxxxxxxxxxx>
Date: Thu, 8 Jan 2004 18:44:50 +1100
This one has been dealt with at length. Eb*y won't allow it 'cos it's agin the law in California, as some have said. They extend their local law to their entire operation to protect themselves and I have been bounced for transgressing. The problem with Paypal is that the seller pays the charges while with all other systems the buyer is charged (Bidpay for example). It is my view that the buyer should be responsible for any costs associated with getting payment to the seller and the seller responsible for the listing charges - that seems like a fair division but Paypal does erode this 'contract.' For international sellers like myself, the charge is even heavier as an additional 1% is levied on incoming payments, even if the money comes from and is respent in the US. I have calculated Paypal's cut at as much as 8% of a transaction, when all costs such as payments, cash transfer and currency conversion margins were taken into account. On top of Eb*y's fees, that's not negligible. The whole thing makes it difficult for me as I cannot ask for a fair 5% premium as I once did on PP payments. If I load it on to shipping costs, customers may assume I'm trying to gouge them as international shipping already expensive. I cannot, as Eb*y ridiculously recommends, factor it into the sale price as it's an auction, dummy! Perhaps they haven't noticed that. Auctions that charge $15 for an item that costs $4 to ship, George, are not being unfair. They may be a business that HAS to factor in all costs, such as the packaging and having someone schlep down to the post office. The true cost of handling far exceeds the value of the stamp. Direct mail operations like KEH or B&H who are reputable have quite savage international mailing charges. Henry's - the Canadian operation - list their charges on all listings and are quite fair for a commercial seller.
AndrewF
(celebrating the Great Vowel Shift).



I do see what you are saying, but they will still benefit because they will
still collect that fee (3%) no matter who passes it on to whom. I think the
convenience of Paypal will keep the majority of people using it and they won't
worry about paying extra. Then again, you can estimate what paypal will charge
you as a fee and just make that amount part of shipping/handling!  I see lots
of auctions that will charge $13 or $15 shipping when I know it would only cost
them $4 to my address. I don't bid on those.

George S.

olymoose@xxxxxxxxxxxxx writes:


Exactly, and they don't want their prefered payment method to cost more
than other alternatives, thus driving business away from their newly
purchased cash cow.

Moose

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