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  #1  
Old 11/26/2007, 11:20 PM
121a 121a is offline
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Paypal 3% Fee

I read this from someone off NR.com
To sum it up, if you are a seller you can NOT charge the 3% paypal fee, it is against your contract with paypal. To the buyers, don't let the sellers charge you this.
Thought you all would like to know.
  #2  
Old 11/27/2007, 12:46 AM
Scuba_Dave Scuba_Dave is offline
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Gee Thanks

Actually if you are a seller you just tack on a 3% packing & handling fee.

Perfectly legal

In addition you HAVE to add in 3% to the amount they pay towards shipping or else they are not paying enough for shipping
  #3  
Old 11/27/2007, 01:32 AM
gopens gopens is offline
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Quote:
Originally posted by Scuba_Dave
Gee Thanks

Actually if you are a seller you just tack on a 3% packing & handling fee.

Perfectly legal

In addition you HAVE to add in 3% to the amount they pay towards shipping or else they are not paying enough for shipping
A seller can not charge a percentage for a packing fee. What a seller can do is add a few bucks into the shipping charge. This fee would need to be a set price before you sell your item. Also it would need to be across the board. Meaning Paypal or cash buyers would pay the same. You could not say shipping will be 10.00 dollars for cash and 15.00 dollars if Paypal is used. I personally think its crap. I don't see why you can't charge a bit more if you have to pay Paypal fees. But thats the rules. Oh and why do I know this. My friend was suspended from paypal because he charged a percentage to use Paypal.
  #4  
Old 11/27/2007, 11:12 AM
gtrestoration gtrestoration is offline
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It's simple, just quote the price based on Paypal being the method of payment. The normal fee is 30¢ plus 2.9%.
A handy calculator for setting the price with the fees build in can be found at... http://www.ppcalc.com/

Many PP account holders use it mainly for purchasing and are somewhat surprised when the payment comes through for less than the amount sent.

You'll find the practice of adding PP fees fairly common once you look for it other than on eBay. When it happens on eBay other sellers (competition) always report it. Kinda like the "Report this post to a moderator" button here.


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  #5  
Old 11/27/2007, 03:55 PM
fussoverthis fussoverthis is offline
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Can't you just add in the fees across the board, then offer a cash discount? All the liquor stores do it....at least the ones here do.
  #6  
Old 11/27/2007, 04:27 PM
121a 121a is offline
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I charge a set handling fee of $2.00+shipping fee, unless my post says differently. that includes a box, packing material, ect. IMO if you are the seller accepting paypal, then you should pay the fee, if you don't like it then don't use it. Plus it is only if someone uses a CC to pay for there order, no charge if you use you funds.
  #7  
Old 11/27/2007, 04:30 PM
Travis L. Stevens Travis L. Stevens is offline
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Why even worry about it at all? Unless you are making millions off of Ebay and using Paypal for everything, the cost is menial. Plus, if you're making millions off of Ebay, you might as well open your own storefront and skip Ebay altogether. Seriously. You sold an item for $10, Paypal take $0.30, so you just netted $9.70. That still seems like a good chunk of change from something you probably were going to dump in the garbage or found in a potato chip bag
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  #8  
Old 11/27/2007, 09:04 PM
Scuba_Dave Scuba_Dave is offline
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You can charge whatever you want for a packing & handling fee & you DO NOT have to disclose it up front
EBay only requires that it be "reasonable"

You don't ever charge a percentage to use PAYPAL
THAT is against their rules

EBay/Paypal takes almost 10% of every sale

I've yet to see anyone pay cash thru the Internet
It doesn't matter to me how anyone pays, they all pay the packing & handling fee

Only ones who do not are local pick ups
  #9  
Old 11/27/2007, 09:26 PM
Misled Misled is offline
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Just charge a flat rate for shipping. If it's a pick up have them bring cash. Why is this so hard?????
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  #10  
Old 11/27/2007, 09:36 PM
TOURKID TOURKID is offline
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travis.. actually, it REALLY starts to suck!! lol I have clients paypal me a couple thousand dollars and there goes paypal fees. and ebay is wayway worse. I have to pay 15.00 a month for the store, then the listing fees the end fees, and now they get the paypal fees too!!


But, if you leave money in your paypal account it'll collect interest (4% i think) so thats kinda nice.

handling fees are nessassary.. do u drive your packages to the postoffice? gas is killer. and perhaps a po box so you can feel safe handing out your address...
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  #11  
Old 11/27/2007, 10:00 PM
Scuba_Dave Scuba_Dave is offline
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Quote:
Originally posted by Misled
Just charge a flat rate for shipping. If it's a pick up have them bring cash. Why is this so hard?????
Impossible for me to charge a flat rate
I ship items anywhere from 10" tall to 52" tall
Why shoudl I charge someone in the next state more $$ to make up for the person in California who also wants to order from me
What about the 2 orders I sent to Hawaii?
The 4 orders to Canada?
The people in the UK, Australia & other countries who want me to ship to them?

And the EBay calculator is SO FAR OFF
And UPS can be $20 more then my FedEx shipping

It's so hard because shipping rates have increased greatly & Ebay/Paypal have cornered the market & take a greater then average cut of the sale

They generate the LARGEST UPS shipping and DO NOT Pass the savings on to the Seller/Buyer
They get you coming, going, paying & shipping
  #12  
Old 11/28/2007, 07:58 AM
TOURKID TOURKID is offline
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the postman told me yesterday if i print the shipping labels from ebay instead of writing it myself, you get a discount on shipping confirmation and printer ink.

havent looked into it yet
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  #13  
Old 11/28/2007, 08:11 AM
keefsama2003 keefsama2003 is offline
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isnt there anything else other than paypal?
im just starting up a business now and will be signing up for paypal as thats the most widely used but arent there banks out there that offer similar services thru them to accept CC payments ?
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  #14  
Old 11/28/2007, 08:44 AM
Scuba_Dave Scuba_Dave is offline
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Most Credit card companies as I recall ALSO charge 2.5%-5%

Amercian Express used to charge the most - 5% I think?
That's why it was not "accepted everywhere"
Maybe a monthly service charge too
I may look into it for next year & avoid PayPal
I think I have paid PayPal $240 in the past few months in fees

Printing labels from the Internet for any shipping company saves you $$ - sometimes $3-5

I posted a Shipping 101 list on another web-site:

Sorry, more then 5 lines

I think I have learned more about shipping in the past 2 months then in my whole Life. I now know why Companies do not want to ship overseas, why a phone number is required by FedEx, but not by DHL

#1 Sign up for Online - FedEx, DHL, UPS
JUST by signing up AND processing your order online it can save you $20-40 on a large shipment. I emailed an EBay seller who had her item listed at $73 shipping, she signed up & was able to ship the item to me for $41. I was happy, she was happy. More people will bid on her items since her shipping is now correct (lower). You also receive lower rates by processing your shipment & paying online - as much as $3 off

#2 Pit them against each other. get in touch with a Rep, they are sales people. They want your business, but they won't give you a deal unless you ask, then ask again later for a lower rate. I started with FedEx, they gave me "rates". I shipped for 2 weeks, then stopped. I had contected DHL, they gave me better rates. FedEx Rep called me, now they have given me better rates & I am back to FedEx. My preference - FedEx. I find their online software easier to use.
EVEN with doing this, I see people on EBay offering lower shipping
AND - I still ship some stuff by USPS, in some cases its less $$

#3 Use the USPS for shipments to Canada & Hawaii - Yes I have shipped to Hawaii!! It was LESS then shipping to western US!! ?? Shipping to Canada is more due to Customs, but not too bad. USPS does have a limit of 108" on normal shipments to Canada. I use USPS amost exclusively for smaller items
When shipping MAKE SURE know how big your box/item is, TOTAL SIZE, not just how tall the item is (see #4)

#4 SIZE DOES COUNT!!
In some cases the cost of shipping will drop by $40-60 by just shaving 1" off the size of the box!! They all build a size adjustment inot their rates now
What is girth? Read this by the USPS:
http://postcalc.usps.gov/PopUps/pop_up15.htm

Use “Package” when the length plus girth (the distance around the thickest part) of a package equals 84 inches or less and it is less than 1 cubic foot.

UNDER 84" in girth - pretty cost effective to ship by USPS on smaller items

85" - UNDER 130" Usually I ship FedEx, but real close to the 130" I have found UPS to be a better rate

If you go OVER 130" - book a round trip plane ticket!! It's cheaper

#5 DROP IT OFF!!
Find a drop off location in your area, there are multiple places near me for UPS / FedEX or DHL. They ARE more then happy to pick up, because they charge you $3-5 to do so
When filling out online make sure you select you are dropping it off

#6a EBay
These sizes are VERY IMPORTANT to know when selling on EBay
Choose too small a category & you will be undercharging for shipping
Choose too large & no-one will bid because your rates are off
That said I have simply found the EBay rates to be too far off to use
I lost almost $20 in shipping costs on about 6 items due to the shipping being off (UPS). USPS is usually correct as long as you have the size & weight correct. Use the NEXT highest weight range. If the item weighs #3 lbs I use the 3-4lb range, not the 2-3 lb range
EBay offered 31% off their UPS rates - BIG PROMOTION!!
I checked, FedEx & DHL were still better then UPS
EBay/Paypal are the biggest combined shipping generator that consumers use
THEY GET THE BEST RATE, and IMO DO NOT pass it on to the EBay user

#6b EBay - MORE
EBay states that more people will bid on an item that states shipping costs
I think this is probably true. On smaller items, or when I know USPS will be less, I add that in to the auction
EBay also gives you the ability to add in your handling charges as part of the shipping when you start the auction. A lot of people simply add in $1 (THIS IS AN EBAY FUNCTION & THIS HANDLING CHARGE IS NOT REVEALED TO THE BIDDER & IS NOT REQUIRED TO BE REVEALED TO THE BIDDER)
I have seen as much as $16 (maybe more) added on to the cost of shipping in some cases. Bids are lower, but the seller doesn't pay EBay fees on the added shipping. EBay allows "reasonable" shipping & handing charges

#6c FEEDBACK
Unless you are prepared or capable of refunding 100% of a sale including shipping chances are you will not maintain 100% feedback. Someone, somewhere will give you a negative - I have 2 in 8 years on EBay. In both cases I did nothing wrong. Years ago someone bid last minute on a USED computer & then complained when they recd it & it was USED. I pointed them back to the auction where it clearly stated IT WAS USED, some new partsHe wanted to send it back, fine, pay for shipping it back to me. He didn't want to pay for shipping, he kept it I got a negative
Recently I had someone send me a check, I told him the item wouldn't ship until 10 days AFTER the check cleared. He mailed a check, it took almost 10 days to get to me (weekend). By the time it was deposited & cleared it was 20 days - and on a weekend. His item shipped 3 days after the check cleared (due to weekend). He somehow thought I (or my bank) had access to his bank & would "know" that the check had cleared . He wanted it shipped via USPS, took a number of datys to get there. He then gave me a negative because it took too long to ship. And because it was "loose" in the box
This was a green alien - its a green mold - very little paint & it was boxed so it wouldn't move. He never complained to me, just asked about what happened, which I fully explained to him & gave him the timeline, I also reminded him that I had warned him that the item WOULD NOT ship until 10 days after the check had been deposited. I guess this is one reason sellers have a "fear" of newbies to EBay. In 9 years on EBay I have NEVER left anyone a negative. Not even when a fan in an inflatable I recd was broken. I recd a refund on the cost of the item, I paid shipping as I knew I could get a replacement fan & fix it (and did)

#7 MOST People DO NOT REALIZE the cost of shipping & the higher RATES
It's the biggest complant I hear. I try to put this in every auction
It's more work to give out shipping quotes, but more accurate
I ask for Zip code, City & State for a quote. The ones that have all that information I process 1st. I have numerous people ask me for a shipping quote - without telling me where they are (And I have done the same on EBay a few times)

There is NO reason to pay higher shipping rates
Just a few steps & careful measurements can help reduce costs
  #15  
Old 11/28/2007, 08:46 AM
Scuba_Dave Scuba_Dave is offline
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Another Cost saving measure:

If the person can have their item shipped to a business address it is less $$
Even tho I run my "business" from my house it is not a business address
This is the same for someone who is receiving an item
FedEx/shipper determines if it is business address
If you quote & charge for a business address & it's a house FedEx will charge you the higher rate

Many people can't receive items at work
BUT they may havea friend or a local store who will allow them to have an item shipped & hold it for them

I'm not sure on shipping & holding at the shipping depot for pickup. It seems that should be less, but haven't checked

I used to do this for my Salt water aquarium orders
You don't want livestock sitting out in the cold or heat
  #16  
Old 11/28/2007, 10:46 AM
gtrestoration gtrestoration is offline
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That 30¢ + 3% adds up. PP has taken $112.69 in fees so far in November from my account.
That said, I'm really not complaining. I have a choice on each eBay listing to accept PP as a payment method.
When it comes right down to it for any sale less than $50 I'd much rather they used PP. They send the funds and all I'm left to do is invoice and ship. PP eliminates my need to collect the CC information and run the transaction through my own terminal which isn't free either.

The killer for me last month was when I received a letter from my CC processor telling me my wireless terminal would be unusable after December 31, 2007. So that meant I had to either lease or purchase I new one. It's the third time in nine years I've had to do this even though the old one still worked fine. That was another $700.00 cash outlay. Lease it and it's twice as much over three years.

SteveU
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  #17  
Old 11/28/2007, 03:22 PM
Scuba_Dave Scuba_Dave is offline
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What does the CC company charge for fee's?

I'm trying to decide if its worth it
Many people prefer PayPal on EBay
  #18  
Old 11/28/2007, 04:05 PM
TOURKID TOURKID is offline
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its worth it. im getting a creditcard reader before spring (the kind I can use in a open field) a few of my friends have em. as soon as i paid for a business name they flooded my mailbox with deals lol
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  #19  
Old 11/28/2007, 04:20 PM
gtrestoration gtrestoration is offline
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We use Costco merchant services. We've used them about four years and rarely a problem and fund transfers are timely. I've only encountered the system down once when I had to use the voice authorization system and then force the sale into the terminal later in the day.

The rates vary based on the type of sale.
Card swiped is 1.64% + 20¢
Mail order and internet transactions are 1.99% + 27¢
That applies anytime you don't have the card present or the machine wont read it.
That's MC and Visa, Discover and Amex are more.

They waive my monthly billing fee of $4.95 but I do have to pay around $20.00/month for the wireless service. We need the wireless since we do 30+ car shows/swap per year.

I don't think it's as simple as that though. Rates on cards issued to a business are slightly higher since they never have an annual fee and they get more accounting reports that they don't pay for (I do). Then if you get mis-matched info on the address or have a missing or incorrect CVV2 the rate changes. That part is really a pain since I've been selling to a lot of shops for 10 years and know the card is ok but still have to go through all the steps to get the best rate possible when there's really no risk to anyone. Those codes by law can not be stored by the merchant yet my regular customers expect me to have everything I need to complete the order once they tell me the parts they need. So either I store it or I ask each time they order or run the transaction without it and pay a higher fee.


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