posted on November 16, 2002 01:36:26 PM new
The question is: Can a seller offer to accept PayPal only if the auction closes over a specified amount? If seller posts it on their Terms of Sale?
A seller routinely lists items at $0.99, with the expectation that the bids will raise to a realistic amount, reflecting the "eBay Market Value." If the bids for the item do not raise beyond that threshold level, can the seller decline to accept PayPal, if it is stated on the seller Terms of Sales? Is this situation covered anywhere on PayPal or eBay rules? I could not find anything about that.
The Seller states that he/she will not accept PayPal unless the item closes over $50.00, indicating the high cost of processing PayPal for a smaller amount.
PayPal fees would be:
for $0.99 sale: $0.30 plus (2.9%) $0.03 for a total of $0.33 or 33.3% of the Sale
for $5.00 sale: $0.30 plus (2.9%) $0.15 for a total of $0.45 or 9% of the Sale
for $10.00 sale: $0.30 plus (2.9%) $0.29 for a total of $0.59 or 5.9% of the Sale
for $15.00 sale: $0.30 plus (2.9%) $0.44 for a total of $0.74 or 4.9% of the Sale
for $20.00 sale: $0.30 plus (2.9%) $0.58 for a total of $0.88 or 4.2% of the Sale
for $25.00 sale: $0.30 plus (2.9%) $0.73 for a total of $1.03 or 4.1% of the Sale
for $30.00 sale: $0.30 plus (2.9%) $0.87 for a total of $1.17 or 3.9% of the Sale
for $40.00 sale: $0.30 plus (2.9%) $1.16 for a total of $1.46 or 3.7% of the Sale
for $50.00 sale: $0.30 plus (2.9%) $1.45 for a total of $1.75 or 3.5% of the Sale
Now the percentage of the fee that he/she will be charged by PayPal is getting close to what the typical merchant would pays for sales at the store, larger retailers even pay less. The truth seems to be that anything at $50.00 or below would not be economically feasible for the seller to accept Payments through PayPal. I can well understand their line of reasoning.
Is there anything on PayPal or eBay rules that do not allow seller to accept PayPal only on sales over $50.00?
posted on November 16, 2002 01:58:08 PM new
it is up to the seller.
if you think it is not worthwhile,then remove the paypal logo and then email the high bidder after close of auction if he/she can use paypal.
or just add it to your shipping and handling fee as stated in item page.
posted on November 16, 2002 02:12:04 PM new
Hi askdaruma:
Thank you for your feedback, I believe the seller was attempting to cover himself/herself in case that for some reason or another there were one or a few bidders.
The example is a piece of Retail Software selling for $500.00+, the item may bring on eBay $300.00 or more. However, on this situation the seller listed for $0.99 as they routinely do. It only brought $0.99, plus shipping fees which seller charged actual costs.
In your opinion, as long as the seller states on the Terms of Sale, then is OK. Are those Terms of Sale a violation of PayPal or eBay policies?
Thank you for your help.
Rudy
USMarines
[ edited by USMarines on Nov 16, 2002 02:16 PM ]
posted on November 16, 2002 06:44:49 PM new
terms of sales is between seller and buyer ,has nothing to do with venue provider or payment service.
why dont you put a reserve on the 99 cents sale then??
just remove the paypal logo and then email them afterward ,most people dont read,so dont count on them to read GONE WITH THE WIND OR ENCYCLOPEDIA BRITANICA,they just want to bid,they dont want to read terms of every seller on ebay.
