Buyers paying Paypal fees?

[celluloidprop]

Going along with other recent Ebay threads - I'm curious how buyers/sellers feel about Ebay auctions/ads requiring that the buyer pay extra for Paypal fees.

It seems odd to me, like a retail outlet tacking on 3.5% to cover their MasterCard overhead - would anyone willingly shop there again? When I see that (and I almost always use Paypal for online transactions - easy, fast and somewhat protected), I write the auction or sale off immediately.

 

[Stephanie Brim]

Eh, there are other ways to pay if you don't want to pay the Paypal fees. If they don't offer you other ways, though, I don't really like it.

 

[Nick R.]

It's against ebay rules, in the US, atleast.

 

[ray_g]

I don't like it, on ebay at least. The seller benefits from paypal since they get their money quickly, and should pay the fees. Your comparison to Mastercard is very true.

Here on RFF, since we are not really buying and selling stuff for profit, I offer to spit the paypal fees.

 

[enochRoot]

i always charge the fee. why should i eat that money because they want the process to be quick, or want to use a credit card? i always take money orders and cash too...so they have a route with no real fees associated. i don't believe the retail merchant account analogy works, as i do not "do this" for a living. anything sold on ebay is just hobby. and personally..i *expect* to pay the charge when i am the buyer. it makes sense, and it is only fair. but that's just me.

 

[JoshRoot]

Making buyers pay palpay fees will get you warned then suspended from ebay/paypal if a buyer complains to them. And in a few states, it is actually against the law to charge more if payment is rendered via one method vs another.

Personally, I find it to be tacky and low class. Yes, paypal charges you a fee. But they are providing you a service. And for the service they provide (ability to accept credit cards), it is well priced. Even checked out what it costs to have a merchant account set up for a store or business? Paypal is a bargin.

Just suck up the 3% and deal with it. Or don't accept Paypal as a payment. But as someone who buys tons of stuff through ebay and web forums, I guarentee that I am far FAR less likely to buy something if the seller doesn't accept paypal. The way I see it, a seller ends up losing money because of fewer serious buyers and hence, lower bids, if they don't accept paypal.

 

[Rob Holland]

The buyer always pays the paypal or any other fees, since the buyer is the one providing the money for the transaction. The seller just figures it into the price. I just look at the total price including any transaction fees and shipping and either take it or leave it.

Later,
Rob

 

[bcs89]

Josh, while I mostly agree with you, I think the reason it is done here at RFF is that most all items are being sold at little or no profit - at cost if you will - so it makes sense IMHO.

 

[ChrisN]

As a buyer, I just have to decide what I'm willing to pay, and that includes postage plus whatever else the seller demands. If it isn't good value to me, then I don't buy. Paypal's a pain, but often it's my only option, and for me as a buyer its a lot cheaper than using Western Union.

If I'm selling it will depend on how much "margin" I've got in the price over my cost or the item's value to me (if I was to hang on to it). For example if I found a camera at a real bargain price and was able to offer it here for twice what I paid and still offer someone else a very good price, then I'd be happy to absorb the paypal fees myself. But if I was just passing an item along for the same price I paid, then I'd prefer not to actually lose money on the transaction.

 

[enochRoot]

guess i'm just tacky and low class. have you ever added that "little fee" up on large purchases. it can be quite a hit. maybe not wanting to pay the fee as a buyer is just you being cheap. i have never had an issue, and have bought and sold a lot of gear on ebay.

 

[Stephanie Brim]

i like paypal, but I don't usually put restrictions on how people pay. i just factor in the paypal costs with my final price. I don't sell on Ebay either, though. I dislike Ebay for anything other than buying. I often like people who send me money orders over those who send Paypal because that way I can put it directly into my bank account...for Paypal transfers into my account it takes 3-4 days. It's not really all that much faster than sending it by mail, IMO.

 

[enochRoot]

As a buyer, I just have to decide what I'm willing to pay, and that includes postage plus whatever else the seller demands. If it isn't good value to me, then I don't buy. Paypal's a pain, but often it's my only option, and for me as a buyer its a lot cheaper than using Western Union.

If I'm selling it will depend on how much "margin" I've got in the price over my cost or the item's value to me (if I was to hang on to it). For example if I found a camera at a real bargain price and was able to offer it here for twice what I paid and still offer someone else a very good price, then I'd be happy to absorb the paypal fees myself. But if I was just passing an item along for the same price I paid, then I'd prefer not to actually lose money on the transaction.

well put chris.

 

[rover]

For ebay, if I am selling I consider the fees, from ebay and paypal when setting my starting bid (I don't use reserves and rearly set BIN prices). In private sales, all should be disclosed up front and taken into consideration when buying.

 

[ray_g]

It used to be I didn't ask for the fee. But, after getting hit with two 7.5% fees on out of US sales, I started. I can't predict what Paypal is going to whack me with anymore.

Why 7.5 percent?

 

[ray_g]

Ouch. This relates directly to why a lot of ebay sellers don't sell out of the US, since Paypal is the easiest way to transact internationally.

 

[f/stopblues]

I see the convenience or service of Paypal as a buyer's nicety. They (or I, as the case may be) are typically the ones concerned with receiving the goods quickly. I think most sellers aren't so worried about the transit time of the money. I tack it on where applicable.

The example of the merchant and the credit card fees is valid, but those fees, in addition to any other overhead, is already lumped into the *set* price of the goods in the store. I'm not a merchant and I can't recoup those costs.. only the market value which is set by the buyer. I do offer other ways to pay cause they're just as convenient for me and I'm ok with the risk involved. If those aren't acceptable to the buyer and the Paypal fee is also not acceptable, then I'm also okay with losing that person's interest. As I said, I'm not a merchant and not in it for a profit, but I also don't want to eat fees and end up below market value before I even start.

By that logic I'm ok with doing it and for others doing it. It's really a personal choice as a very low volume seller/buyer on the 'bay.

EDIT: Splitting the fees as others have mentioned, I think is a reasonable option.

 

[Little Prince]

I'm with Enochroot on this. All the arguments describing how Paypal serves the seller with convenience and speed apply to the buyer too. It takes the buyer shorter time and is just as convenient to him/her as compared to getting a MO or whatever. In fact as a buyer, I will often pass up deals that don't accept Paypal as an option. Many others here have indicated the same. So what does that mean? It means the buyer is availing of and preferring a service. As good a reason to pay up as the seller.

That said, I have never yet charged anyone for Paypal fees when I have sold but I sure do like to reserve the right to do so. As someone else mentioned, splitting the fee would probably be the fairest choice.

 

[celluloidprop]

Wow, I didn't even know about the currency conversion hit, I'll definitely have to remember to make international sales worth my time.

 

[JoshRoot]

Disagree with my opinion all you like, hardly bothers me. I do see the other side of the argument, I just don't agree with it. Paypal offers a service, if you don't want to use it, don't offer it as a seller. Or, do like brick and mortar stores do, and figure that cost into your pricing. You can always stick a $5 bill into the box as a "thank you" if someone pays you with a money order. Then you get the best of both worlds. But I doubt anyone is going to be doing that.

I realize that many people here RFF are quite generous with their pricing, and I admit that I view that in a slightly better light that someone trying to nickle and dime more money on an ebay auction. But the more important issue is that all it takes is one or two jerk buyers complaining to ebay/paypal, and you can get your account suspended. Read the "terms of agreement" that you signed up for on either site. Both strictly forbid charging more to use paypal as a payment service. So if you are going to try and get the fees back from the buyer, make sure you trust who you are selling to.

 

[Poptart]

I pay the fees but I refuse to refund them if someone returns something or the sale is terminated. The fact that eBay owns PayPal is double-dipping to begin with. I even have check or m/o preferred on all my auctions--albeit few buyers take this to heart.