elgato
Joined: 24 Feb 2005
Posts: 16923
Location: Texas
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| Posted: Sun Mar 21, 2010 12:45 pm Post subject: PayPal Micropayments Can Save Online Sellers Money |
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An AuctionBytes reader recently wrote to me to say he is saving a lot of money using PayPal micropayments pricing (see also this page). It's not a new service, but sellers of low-priced items may not realize that they can take advantage of micropayments, which many might associate with digital content rather than physical goods.
I conducted an email interview with PayPal's Anuj Nayar to find out which sellers could benefit from the program and to nail down the restrictions sellers might face in using a PayPal Micropayments account.
After conducting my interview with Mr. Nayar, Bloomberg reported that PayPal planned to make its micropayments plan even more attractive by allowing companies to accumulate micropayments until a certain volume is reached, charging them a single processing fee (see this March 15 article). Anuj said, "PayPal has not announced any new plans for handling micropayments," so it's something to keep an eye on, as it would provide further savings to sellers of low-cost items.
more.. link to news article |
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DaLizardsLair
Joined: 15 Feb 2009
Posts: 4782
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| Posted: Sun Mar 21, 2010 3:46 pm Post subject: |
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On the surface, this appears to be a great idea for those of us who routinely sell items for less than $12.
But the fly in the ointment here is that you would need to have another Paypal account and some way to make sure that buyers went to the correct account, so that one's higher priced items didn't get charged the Micropayments rate.
So the seller would now have to have two or more stores. One with the less expensive items and one with the higher priced items. A bit of a headache to set up and manage.
And the kicker for me, was this comment made during the interview....
AuctionBytes: How many PayPal accounts may users have?
Anuj Nayar: There is no limit to the number of PayPal accounts an online merchant is allowed to have.
There is no limit to the number of Paypal accounts one is allowed to have?
Since when? |
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