If you receive more than $3,000 a month through your Paypal account, then you can apply for a lower fee rate. You must apply for the rate, it is not automatically applied to your account. The normal fees for monthly sales (incoming funds) to Paypal are:

$0.00 USD – $3,000.00 USD 2.9% + $0.30 (per transaction) USD

If your sales (incoming funds) are $3,000.01 USD – $10,000.00 USD, the fees are 2.5% + $0.30 (per transaction) USD. If your incoming funds are $10,000+, the rate drops to 2.2% + $0.30 per transaction.

To apply for the lower rate, visit this link, sign into your Paypal account, and complete the questions. Once you apply, you will receive a confirmation email from Paypal explaining your rate and the necessary criteria to keep that rate.

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Post from: EveryJoe

Lower Your Paypal Fees – Apply for Merchant Rate

There are always two sides to every story. We’ve been having a discussion on the eBay Coach Discussion Forum about requiring immediate payment on eBay items. Here are the pros and cons.

Advantages:

When requiring immediate payment, until the Paypal transaction is completed, the item stays in your store inventory. The first buyer to pay for it wins the item.

Buyers know ahead of time that they will be required to pay for the item as soon as they click the “buy” button.

You don’t have to worry about collecting payment from non-paying buyers. If they don’t pay, they don’t win.

Disadvantages:

Buyers can become confused when making multiple purchases, especially if purchasing a combination of auction items with different ending times, and store inventory items.

Confusion often results when working with international customers.

Buyers may want to commit to purchase a unique or hard to find item, although they won’t be able to pay for it for a few days. Case in point: My son wanted a specific older PS2 game for his birthday. I found one (and only one) on eBay that required immediate payment. I was able to purchase it right away, but other buyers may have had to wait (for their paycheck perhaps) before actually making payment. Buyers may want the item, be willing to pay your price, but know they won’t have the money until payday.

My opinion – don’t require immediate payment. I used it for a while and received so many emails from confused buyers, I removed the immediate payment requiement. You may lose potential buyers buy having this requirement. It can be confusing when multiple purchases and auctions are involved. In my experience, 99% of buyers pay for their items without incident. Adding restrictive or confusing requirements to your listings can only hurt your sales. Keep it simple. The potential sales you are missing can very well outweigh any non-paying bidders.

What are your experiences with using Immediate Payment on eBay items?

[Image Source: Flickr]

Post from: EveryJoe

Pros and Cons of Using Immediate Payment on eBay