Paypal pros and cons

rose_sparky

At the moment I don't accept Paypal although I'm sort of considering doing so.

I don't know much about it apart from what I've read on here so would appreciate your input as to why/why not you deal with Paypal.

From where I'm sitting the plus side is it's instant payment (hopefully) and some people will only bid if they can use Paypal.

The minus side for me is their charges (not sure what they are). I'm also a little concerned as I'm sure I've read on here that if a buyer isn't happy with their item Paypal can "raid" your account and refund them.

SallyD

Thanks for posting this query. I am a new Ebay buyer and am getting the bug.I want ot start selling. I have set up and used a PayPal account to buy and found it painless, but not so sure how it works and fees etc., when selling, a little confusing for me. I understand if you sell something and acept a cheque is it bounces the bank charges you - so not too keen on that.

Any advice anyone can offer would be greatly appreciated.

b14ck

if your a seller,send everything recorded delivery and keep reciepts and for higher value items send the special delivery.people have been ripped off by fake chargeback claims on higher value stuff so beware.

larmy16

I have had no problems with paypal yet! Regarding sending everything recorded, sometimes it depends on the weight. For example I followed this advice way back when I first started selling and stated it in my listing. Of course when the item sold - a heavy kenwood slicer I was faced with a posting cost of £14.98!, whereas had I stated standard parcels it would have been half that.:rolleyes:

I tend to take things literally so just saying this incase you make my mistake.:)

soolin

Virtually all my auctions are paid for using paypal. I do not send everything recorded, I couldn't afford to as at 68p per time and say conservatively 100 parcels a month that would cost me £68. However, I do keep a certificate of posting for everything I send and if an item goes astray I refund usually in week 2 and just reclaim my costs via Royal mail. I would never let it get to a chargeback.

For items over £32 though I always send special delivery to be covered against loss in the post, or for heavy items as a parcel with the appropriate level of insurance for my own benefit.

I do not treat my buyers differently depending on how they pay, therefore even someone paying by cheque or bank transfer would get a refund from me, IMHO the vast majority of users on ebay are honest and good, just like us on here, therefore I do not have to protect myself against them. If I honestly thought anyone was out to get me I wouldn't sell on ebay at all.

The real benefit to me though of paypal is that it makes my life easier. All my items finishing last night have been paid for already, and some have gone this morning and some will go on Monday. Usually within 2 working days of auctions finishing the whole transaction is complete and quite often feedback left. I find cheques a struggle, I have to go into town to pay them in, and then either risk sending stuff out before cleared funds, or wait for days, usually with the buyer asking me every few hours where their item is.

Soo

Stuart_P

i dont use paypal. have traded on ebay for 5yrs. have 2600+ 100% postive feedback. i feel i pay ebay enough each month in fees. if i were using paypal, i would be paying yet another set of fees to what is effectively another ebay company...paying ebay twice!! if you use ebay & paypal expect to pay nearly 7% in fees if not more.

i accept credit cards / chqs / postal orders / bank transfer / international bank transfer. more than enough options for a buyer to use.

there is plenty of info here http://www.paypalsucks.com/ as to why you may want to think again before using paypal. i have yet to find a similar website singing the praises of paypal.

point to consider - a buyer can open a paypal claim against you for non delivery even if you have sent the item. this could be a false claim from the buyer or a legit one. either way, if you have not used a trackable postage method eg recorded delivery then paypal will always find in favour of the buyer.

codger

Stuart_P wrote:

either way, if you have not used a trackable postage method eg recorded delivery then paypal will always find in favour of the buyer.

But isn't that the point, Stuart? TBH, I was agin PayPal for many years and refused to use it (as a seller) but found it convenient as a buyer. I offered NOCHEX for a while but buyers seemed hesitant and for some reason, three of them at different times experienced check-out difficulties.

I finally switched to PayPal and have been highly satisfied; PayPal's £500 'protection logo' has, I assume, also given confidence to my buyers (that, plus 100% feedback and my membership of the little, and unofficial, eBay "Fair Trader" group.)

Like soo, I tend to think the vast majority of eBay members -- and I mean, vast! -- are honest. I have, however, adopted the practice of making Signed For mandatory, even though a CoP would do the job just as easily where compensation is concerned (below £32). I've never loaded on for P&P so did wonder if Signed For would put off prospective buyers as it's not merely the 68p premium, there's the fact that not everyone is going to be around to sign for delivery, and so won't wish to face inconvenience.

Unfortunately, it's impossible to know, quantifiably, if it's had any effect, because sales with mandatory Signed For seem no different to the earlier sales without.

Where PayPal's concerned though, I really do think it helped my sales, both in terms of making life easy for prospective buyers (payment) and for the sense of security they may feel thanks to the £500 PayPal protection logo. And, hand on heart, I have to say that a recent account difficulty -- caused entirely by me -- was sorted out by PayPal's help & support staff in less than 1 hour.

angelcake

I think paypal attracts more buyers, I usually buy from people who have paypal simply for the fact it is a faster transaction!! althought as a seller I hate the fees you have to pay but do....because you have to and I really think it is easier! and safer!

Stuart_P

the items i post cost around £2.00 each 1st class. adding on extra 75p for recorded would put a lot of buyers off and not be competitive at all

windswept

if you build your ebay and paypal fees into your prices and your postage then it shouldn't cost you very much at all, I do think that it depends how and what you sell though, if you sell everything by auction I suppose it can be difficult to judge, buy it now is much easier, but more appropriate for new goods. I sell our goods on ebay at slightly higher prices than I do elsewhere and try and make at least £1.00 on p&p, that way most of our fees are covered. it also depends on what you want from your profit margins, you need to find a level that you feel is worthwhile, as you also have to factor in your time and trips to the p.o. etc.

soolin

Stuart_P wrote:

i
point to consider - a buyer can open a paypal claim against you for non delivery even if you have sent the item. this could be a false claim from the buyer or a legit one. either way, if you have not used a trackable postage method eg recorded delivery then paypal will always find in favour of the buyer.

Sending an item is not proof of delivery and it is quite right that a buyer can chargeback their funds in cases of non receipt. The anti paypal sites are full of stories where sellers bung things in the post and seem surprised when buyers ask them where it is. Whilst there are some sellers who will not take responsibility for item going astray I will continue to stress to everyone that they should use paypal backed by a card.

A buyer who makes a habit of claiming non receipt will soon be found out as mention will creep into feedback.

Soo