What is with these PayPal fees for buyers?
Feb 16, 2011 at 12:28 AM Thread Starter Post #1 of 16

Anacondastan

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  Why do so many sellers here pass PayPal fees onto the buyers?  PayPal is the cost of doing business in the market place for the seller's of goods not buyers, In retail establishments it’s illegal (or at the very least free market suicide) to charge one price for cash transactions and a higher price for credit card transaction so why do so many people comply with this double standard here? At least be creative with some basic math and build or hide the PayPal transaction fees  into your bottom line. Instead of asking for $80 plus fees just ask for $83 or round it to $85 now you have your asking and your fees imbedded. Buyers are not doing sellers a favor by bringing goods to market, you don't want it therefore you are selling it. Why are you charging me extra for the privilege to exchange your used goods for cash to buy new goods? 
 
Feb 16, 2011 at 12:32 AM Post #2 of 16
the reason is that paypal fees vary.  if someone wants to pay me an e-check for $2000 cans, the fee is $5 flat, vs. roughly $70 for a credit card payment.  and what if they have a paypal balance?  then they have no fee at all
 
it would be silly to force the fee on buyers who choose cheaper options than credit cards, and in fact the unnecessarily high cost in that case would put off potential buyers
 
Feb 16, 2011 at 12:48 AM Post #3 of 16
 
 
 
     I own a business I would love to charge credit card users more because I have a transaction fee I have to pay each time someone swipes a card, but "it's the cost of doing business" you can't have your cake and eat it too. Following your logic then... should there be a general cash/credit price for all that we buy? Should gas be cheaper for those who pay cash at the register than those who choose to swipe a card at the pump? 
 
Feb 16, 2011 at 12:55 AM Post #4 of 16


Quote:
the reason is that paypal fees vary.  if someone wants to pay me an e-check for $2000 cans, the fee is $5 flat, vs. roughly $70 for a credit card payment.  and what if they have a paypal balance?  then they have no fee at all
 
it would be silly to force the fee on buyers who choose cheaper options than credit cards, and in fact the unnecessarily high cost in that case would put off potential buyers



  You should be willing to absorb the cost of the transaction for the privilege to sell your goods, I mean this website doesn't even charge members for the opportunity to e-advertise and market goods. And on top of that you want buyers to absorb your transaction fees too.  That's simply too much of a good thing. You should open up a real business and see how many hands are dug firmly inside your wallet. 
 
Feb 16, 2011 at 12:51 PM Post #5 of 16
I tend to agree with you but really I don't really have a problem with someone requesting the buyer to pay the fees as long as the seller is up front about it from the very beginning.  This is not a place for commercial sellers or profiteering, so I think analogizing sales on Head-fi to commercial sales in a retail establishment is a bit of an apples to oranges comparison.  For sellers on here, I'm not sure many fully know what the cost of the transaction will be and since the item will probably listed for a price that is less than could be obtained elsewhere, I'm not sure that too many purchasers are upset with paying the extra fees to get a bargain deal.  That being said, I list my items for sale as $XX.XX shipped with the understanding that there will be some costs associated with the transaction on my end.  IMO, listing an item for a single price inclusive of fees and shipping is the best practice, but I don't really have a problem if someone else decides to do things a different way.  
 
Feb 16, 2011 at 1:01 PM Post #6 of 16


Quote:
 
 
 
   
 
  Why do so many sellers here pass PayPal fees onto the buyers?  PayPal is the cost of doing business in the market place for the seller's of goods not buyers, In retail establishments it’s illegal (or at the very least free market suicide) to charge one price for cash transactions and a higher price for credit card transaction so why do so many people comply with this double standard here? At least be creative with some basic math and build or hide the PayPal transaction fees  into your bottom line. Instead of asking for $80 plus fees just ask for $83 or round it to $85 now you have your asking and your fees imbedded. Buyers are not doing sellers a favor by bringing goods to market, you don't want it therefore you are selling it. Why are you charging me extra for the privilege to exchange your used goods for cash to buy new goods? 



somebody obviously didn't attend an econs 101 class
 
Feb 16, 2011 at 3:36 PM Post #7 of 16
At least few reasons people write that in their sale ads:
1) Base price remains low, and an explanation is offered for any extra fees, potential customers generally appreciate this.
2) Other forms of payment may be accepted, and lots of options are cheaper, so no reason to include extra PayPal fees.
 
There is no "double standard", there is quite a difference between a retail/commercial sale where a business is selling their product and accepts different payment types at same end-user prices and what happens on a site like this.  There is quite a bit involved in this, especially with credit cards as customers use credit cards to purchase goods and services they would not likely purchase had it been pure cash.  For personal items sold on a forum like this, it is standard practice to set the terms of sale, and a lot of people choose to request PayPal fees as extra.
 
Personally, I usually say happy marketing BS like "free shipping" and "no paypal fees" because it makes people happy and they are more inclined to buy.  It's incredibly ridiculous at what people think is a "good value"!  I kid you not, people actually seem to really care about an extra $15 in shipping on a $1000 item... it's all about perspective, but hey, if it makes people happy, why not. :wink:
 
Feb 16, 2011 at 6:30 PM Post #8 of 16
I have been involved in online C2C ecommerce since the late 90's when I got my start with motorcycle parts.
 
I have over 125 eBay transactions, and likely another 250+ between golf, audio, head-fi and watches.
 
I always price my goods to sell, with an all in price for north america - ie $X shipped anywhere in North America.
 
When I buy, I do actually resent having to pay extra fees (Paypal, shipping I tend to expect), but if the seller is upfront about it, I tend to factor that into my initial offer.
 
I have found that lately, more sellers are asking for fees to be included, or asking for the payment to be a gift etc.  It is a scary proposition to send $ to someone you don't know, with few courses of action should they disappear after the money is gone...
 
So, I find that communication is critical to alleviate that fear.  Sure, I might be overly communicative, but I am passionate about all my hobbies, and I like to get to know folks I buy or sell stuff to or from.  It just adds to the experience and the community feeling, even if it is mostly only through pixels!
 
Feb 16, 2011 at 10:38 PM Post #9 of 16
I like to integrate everything the buyer needs to pay into one cost.  If you really want to sell your stuff then you should make it easier for the buyer.
By the way, I think that if you just have a normal paypal account and don't upgrade to premier or whatever then they don't really charge you fees.  There's a limit to how many times you can get paid in a month though, although unless you're selling regularly then it shouldn't be an issue.
 
Feb 18, 2011 at 10:35 AM Post #10 of 16
if there was a complete free market (perfect competition), sellers who didn't charge extra fees for payments by paypal or credit card would quickly go out of business. 
 
the only reason retailers can charge the same for different payments (and receive different net amounts from different buyers) is because they have some sort of market power
 
Feb 19, 2011 at 7:38 PM Post #11 of 16
I recall at one point it was against paypal rules to charge for the fee. I agree, you must include it as part of the price. I'd rather just know the final price, nothing is more annoying than paying for misc fees.
 
Feb 19, 2011 at 7:58 PM Post #12 of 16
 
 
Amen and hallelujah! 
 
Mar 2, 2011 at 3:57 PM Post #13 of 16


Quote:
 
 
 
   
 
  Why do so many sellers here pass PayPal fees onto the buyers? Why are you charging me extra for the privilege to exchange your used goods for cash to buy new goods? 



Anacondastan,
 
This is a real novel concept that you have here! I couldn't agree with you more! However as a buyer, I have in the past been willing to pay for the fees for a seller if the fees included still make the purchase price worthwhile to me. But I agree, why even ask for that. Just include it in the price! I guess this truly is an indication of what kind of seller you may be dealing with. Maybe its a sign not to do business with a seller who requires that. I've had a bad experience once with a seller who did just that. Lesson learned. But again, I couldn't agree more.
 
Marcus Steinbach
 
 
 
Mar 2, 2011 at 10:25 PM Post #14 of 16
You mentioned gas stations. There are quite a few around here that have separate prices for cash and credit.

Whenever I sell, I roll the fees, shipping, etc. into a single price. If you start introducing variables, that gives a buyer another opportunity or two to back out. Not that I think I've cheated anyone or have any intent to, but a fast, easy transaction usually seals the deal quicker and makes people happy. Even if I spend a couple more dollars on shipping than I thought I would, I'd rather have a smooth, fast transaction.

Also, there are other reasons why people encourage cash transactions. Some businesses list a difference to encourage people to pay cash, which then isn't reported as income. I'm not advocating this, but taking a slightly lower cash payment that isn't taxed yields more income than selling at full value that is taxed.
 
Mar 3, 2011 at 3:13 PM Post #15 of 16
 
Why are you charging me extra for the privilege to exchange your used goods for cash to buy new goods? 


If you have the money on your paypal balance, there's no fee...if you don't, you'll pay a fee to paypal for bringing external funds, not quite the seller's fault?
 
And very often, I think ppl feel privileged to buy from me, because I offer good prices and I've done some sort of pre-screening for them....that's how many ppl who buy used stuff from me feel anyway. What I sell usually doesn't stay for sale very long, and ppl are always as happy to buy it as I am to sell it....there's nothing better than happy returning customers. And I'm a badly OCD'ed guy, so gear comes and goes...oh yes, it does.
 
Anyway, the buyer has all the control. He can leave anytime.
 

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