eBay and paypal fees
One of the biggest blessings of the dotcom generation was the creation of eBay. It was just the answered prayer for people who love to buy and sell but hate to walk around. If you share in these sentiments, you must know that paypal is almost the de-facto payment method for paying for your goods online. Did you know that paypal was once wholly owned by eBay? But I digress. Now, while trading has been made easy by these two genius inventions, the costs associated with them can sometimes be a pain in the backside. eBay and paypal fees can leave you with a bad taste when you discover that you have to pay more for an item or earn less from its sale due to the fees. I am here to remove the pain from the trading. The following tips will help you reduce the costs associated with your trade.
1. Ask for a refund when a bidder doesn’t pay on eBay
eBay charges sellers fees whenever they sell an item. This fees is known as the bidder fees and is deducted from the seller’s proceeds. If you are selling an item and the successful bidder unfortunately doesn’t pay for it, you risk being charged this fees unless you can reclaim it. To reclaim it, you should open a case whereby the fees is automatically refunded if the buyer does not pay within four days.
2. Reduce your eBay and paypal fees by dealing in bulk
Apparently, economies of scale also apply to eBay and paypal. eBay charges you on a tiered pricing guide based on the insertion price. If the insertion price for your item is high, you will pay more when it finally sells and vice versa. Therefore, for you to make a profit, you need to sell a lot of items because of the low insertion price. You can take advantage of this if you are selling lots of items.
On paypal, you can take advantage of this when paying your suppliers. There is a mass payment option on paypal that allows you to pay your suppliers for a fixed fee rate. In simple, it takes away the 3.5% cost that you have to pay for on every transaction. You only have to pay a flat rate, that is usually very little, for whatever amount that you are transacting. Knowing how reccurring payments paypal can be expensive, I would say that enabling this feature might be one of the best cost saving tactics you shall ever employ.
3. Do not buy the listing enhancements on eBay!
As if eBay and paypal fees that are directly linked to your trading are not enough, you will have to incur more incase you opt to buy the listing enhancements for your eBay site. A lot of people who use the site say that the enhancements are very generic and will do absolutely nothing to boost your sales. Therefore, unless you have $0.30 per listing to waste, I strongly advice that you look for another way to enhance your account.
4. Save on recurring payments paypal by applying for the merchant rates
If you transact large amounts on paypal per month, you can take advantage of the merchant rates where you are charged lower rates. These rates are tiered but are still cumulatevely lower than the the fixed 3.5%.
eBay and paypal fees can be the difference between the profits you make when transacting on eBay. To ensure that your venture is successful, follow the tips above to cut on the costs that eat into your sweet profits.