eCommerce Tycoon

**GrantMePeace** · 07-24-2009, 01:23 PM

Hello all,

I have started running an e-commerce site. I sell my stuff on-line which is fine, but once in a while someone asks me to sell them an item which I do so via paypal which I have to pay fees for. Which is still fine. But then I have to send that money to the person I was selling the item for which means they also pay a fee! How can I overcome this problem!

I have a Paypal Premium account and I am based in the UK.

Thanks for any help.

**Dave@Hivelociy** · 07-24-2009, 01:26 PM

I would just account for the fees and any overhead and then calculate your costs, I believe that buried somewhere in the paypal tos there is a line item that prohibits you from including any paypal fees in your price, say charging on thing for a credit item and another thing for a paypal item but if it's all encompassing then you should be fine. What does your merchant account provider have for fees?

**GrantMePeace** · 07-24-2009, 01:31 PM

Sorry, I am a bit of a noob and don't know all the lingo yet.

"merchant account provider" what is that? I use Paypal directly via their API to charge customers the prices. I pay fees there.

Once I have the money in my account, I have to send the money to someone else or mass pay them and then the other person pays fees to receive money and they find their profits dwindle even more!

**chrishirst** · 07-24-2009, 01:47 PM

Have a look at using PPPay Their fees are less than PayPals charges

**GrantMePeace** · 07-24-2009, 02:08 PM

Thanks for the link. Do they offer mass payment?

Also their site looks a bit funny?? Or is it just me, no images, no styling, nothing!

**chrishirst** · 07-24-2009, 02:16 PM

https://www.pppay.com/auction_centre.php

The missing images must have been a glitch, they were missing for me, but all appeared when I refreshed the browser.

**downliner** · 07-27-2009, 11:03 PM

Paypals fees are ridiculous, I'd recently been looking at using Protx3D but will take a look PPPay also. I'm sure all of these companies have hidden charges, it's just a matter of which company is the least crooked

When you start making a few thousand transactions per month the fees with PayPal mount up astronomically, though I worry that moving away from PayPal could significantly reduce the number of sales based on the sheer number of people who already have a PayPal account

**willcode4beer** · 07-28-2009, 03:45 PM

2% is crippling? Might be time to revise the 'ol business plan

**GrantMePeace** · 07-29-2009, 10:39 AM

Quote:

Originally Posted by willcode4beer

2% is crippling? Might be time to revise the 'ol business plan

No idea where you got 2% from. When someone buys an item from me say its $1, paypal manages to take $0.30 cents or so. For small amounts its going to be difficult. For larger amounts, the fees will be small but still costly as it cutting into your revenue directly, regardless of how small or large.

**GrantMePeace** · 07-29-2009, 10:42 AM

Quote:

Originally Posted by downliner

Paypals fees are ridiculous, I'd recently been looking at using Protx3D but will take a look PPPay also. I'm sure all of these companies have hidden charges, it's just a matter of which company is the least crooked

lol

the most crooked! I think protx is now sagepay. I am going to check them out too. I could probably accept paypal still but when I want to pay someone I will use my personal account or something along those lines.

Quote:

Originally Posted by downliner

When you start making a few thousand transactions per month the fees with PayPal mount up astronomically, though I worry that moving away from PayPal could significantly reduce the number of sales based on the sheer number of people who already have a PayPal account

When you have that sort market share, you can do what ever you like. For those that don't like it, using the service and "eating dirt" is the only option.