Paypal accounts are the perfect way to ensure a smooth financial transaction between eBay buyer and seller. Chosen by most buyers and sellers as the preferred way to check-out, Paypal offers a buyer payment options using major credit cards or his/her bank account. Likewise, sellers can take advantage of payment notifications and have the guarantee of funds available. This reliable service avoids bounced checks, lost money orders or cash sent in the mail. Sellers are also able to take advantage of direct deposit to their bank accounts, transferring their money to a Paypal debit card or saving it to open a Paypal Money Market Account.
There are several options available when opening a Paypal account. eBay buyers will most likely choose a Paypal Personal Account. This account is free and does not require any transaction fees. Paypal requires all accounts linked to bank accounts to become verified. Whether payment methods chosen come from savings or checking accounts, the Paypal account must first be registered with bank account routing number, account number and type (either checking or savings). Afterwards, two small deposits will be placed in the account. After waiting a few days, the amounts deposited can be entered on the Paypal website and, if entered correctly, the bank account will now work fine.
One downside to paying with a bank-only method is having a shipping delay. eBay sellers must wait for the money to clear out of the buyer’s bank account and be processed through Paypal. One way to speed up the process is to add a credit card. By adding a credit card to the account, payments are processed to the seller faster and merchandise is shipped quicker.
Sellers need Paypal Business or Premier Accounts. These are designed to receive payments from buyers and are created with the seller in mind. Both Paypal Business and Premier Accounts allow sellers to receive their payments in designated bank accounts (if one has been verified) or in the form of a Paypal Debit Card. However, if using an eBay store with more than one owner, a Paypal Premier Account is necessary. This works best for stores with co-owners or those where a group of people each manages niche stores under one large, umbrella-type of operation.
While eBay buyers do not have to pay a fee to purchase and complete a transaction, sellers have varying fees. In addition to the eBay listing fee, sellers must also pay Paypal fees. These fees vary based on the overall seller’s monthly sales volume, but a good rule of thumb is .30 cents plus 1.9 to 2.9% of the selling price per transaction. For example, if monthly sales are in the $1000 range, and a buyer purchases an item for $10, the fee charged to the seller from Paypal would be approximately .59 cents. The higher the monthly sales volume, the lower the Paypal transaction fees are to the seller.
Paypal also has other added features including fraud protection, free eBay merchant tools, and the ability to process international payments (for an additional charge). Accepted in more places that eBay, having a Paypal account is a great way for both buyers and sellers to conduct virtual business in a safe, controlled environment.
Marketing, while a time-consuming, is a necessary aspect of operating a business. Creating direct, targeted advertisements to potential customers can be done on a budget. One of the best ways for budget-conscious sellers to market themselves is with a newsletter.
Newsletters can be printed relatively inexpensively and marketed with volunteer labor. Items in a seller’s newsletter vary depending on type of products sold but most commonly include name of store, contact information, featured products or listings, payment and shipping information, and helpful guides. Since printed newsletters are distributed locally, special wording should be included advising bidders to contact the seller to arrange for a local pick-up; since they will not need the item shipped.
When deciding which products to feature, consider listing those with “buy it now” or 30-day listings. These will allow for more long-term usage of the newsletter and attract interested buyers desiring to make an immediate purchase. If having a very unique item, a seller may want to mix immediate purchase items with bidding ones. Offer items with a low bid to spark interest in potential buyers. The buyer will most likely visit the eBay listing and check on its current price. If satisfactory, a bid may be placed. If not, having a running ticker of other items on your listing may spark the buyer’s interest.
Another way to decide which items to feature is to use seasonal availability. Start offering seasonal items to sell at least two months in advance. This leaves room for bidding, payment and shipping wait times. A good rule of thumb is to allow bidding time, a week for payment processing time (may be more or less depending on payment type), and a week for shipping time. Combined with the item’s listing time (if doing a timed listing) and this is approximately how far in advance seasonal items should be listed.
Be sure to put yourself in the shoes of a buyer. Everyone loves discounts; so why not incorporate one into your online store? This would mean offering potential buyers a coupon code or discount day. If selling on a 30-day listing, consider reducing the item by 25% on day 27 or so. Designate one day a month and market that as your sale day. Since most people work Monday through Friday, having a weekend sale date will allow for more buyers to have access to their own personal computers.
Included in the newsletter should be some relevant information. This is where a seller’s bragging rights come in. Potential buyers want a seller with positive feedback and reliability. Boast a little and write how many positive feedback transactions have been accomplished. Buyers will take comfort knowing their seller has many positive recommendations.
Newsletters can be distributed in some of the same locations as other independent sales products. Racks at grocery stores, cubbyholes at libraries, corkboards at apartment complexes and lunch tables at worksites are great places to distribute newsletters. Ask friends and family to suggest any places they may know of to distribute newsletters. Track your sales over a three-month period to see where orders are originating. If coming from your local area, add additional newsletter outlets and wait for even greater profits. However, if few sales are coming from the newsletter, revamp it and keep trying. When local sales take-off, you will know that format is the one to keep.
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