Discussion Forum: Thread 333129

 Author: Freshbrick14000 View Messages Posted By Freshbrick14000
 Posted: Jan 9, 2023 19:29
 Subject: PayPal fees
 Viewed: 201 times
 Topic: Shipping
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Freshbrick14000 (114)

Location:  USA, Wisconsin
Member Since Contact Type Status
Jun 15, 2020 Member Does Not Allow Contact Seller
Buying Privileges - OKSelling Privileges - OK
Store Closed Store: Ski town bricks
Hello,

Recently when I have been losing money due to processing fees that PayPal takes
with every order. No matter how much I raise the shipping price, I end up paying
for the shipping myself. Has anyone found a price point that works, or another
service to process orders through?
 Author: C0lsanders_ View Messages Posted By C0lsanders_
 Posted: Jan 9, 2023 19:33
 Subject: Re: PayPal fees
 Viewed: 50 times
 Topic: Shipping
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C0lsanders_ (825)

Location:  USA, Ohio
Member Since Contact Type Status
Sep 1, 2013 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Sanders´ Bricks
Paypal fees (or any other services fees) are simply part of doing business. You
must account for them in the item price you sell it for. You can also add a handling
fee on top of shipping, but I personally tend to not shop at any store that does
so. I would also not recommend that "increase shipping" to cover the
paypal fees. Fairly bad practice.

Miles



In Shipping, Freshbrick14000 writes:
  Hello,

Recently when I have been losing money due to processing fees that PayPal takes
with every order. No matter how much I raise the shipping price, I end up paying
for the shipping myself. Has anyone found a price point that works, or another
service to process orders through?
 Author: infinibrix View Messages Posted By infinibrix
 Posted: Jan 9, 2023 20:35
 Subject: Re: PayPal fees
 Viewed: 67 times
 Topic: Shipping
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infinibrix (4980)

Location:  United Kingdom, England
Member Since Contact Type Status
Jul 1, 2013 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: infinibrix
In Shipping, C0lsanders_ writes:
  Paypal fees (or any other services fees) are simply part of doing business. You
must account for them in the item price you sell it for. You can also add a handling
fee on top of shipping, but I personally tend to not shop at any store that does
so. I would also not recommend that "increase shipping" to cover the
paypal fees. Fairly bad practice.

Miles


Exactly this!

You have to think of paypal and bricklink fees almost as an essential running
costs as without them you won't easily generate the business in the first
place. If your not making the profits you want then simply increase your overall
prices
 Author: zzed View Messages Posted By zzed
 Posted: Jan 10, 2023 07:33
 Subject: Re: PayPal fees
 Viewed: 53 times
 Topic: Shipping
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zzed (89)

Location:  USA, Indiana
Member Since Contact Type Status
Jun 11, 2019 Contact Member Buyer
Buying Privileges - OK
If you plan to add fees to the total, I suggest stating that in the Terms page.
Getting surprised by mystery fees after I place an order makes me feel less confident
about placing future orders with the seller.
 Author: jennnifer View Messages Posted By jennnifer
 Posted: Jan 9, 2023 19:38
 Subject: Re: PayPal fees
 Viewed: 35 times
 Topic: Shipping
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jennnifer (3531)

Location:  USA, Illinois
Member Since Contact Type Status
Sep 8, 2009 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Old Grey Bricks
In Shipping, Freshbrick14000 writes:
  Hello,

Recently when I have been losing money due to processing fees that PayPal takes
with every order. No matter how much I raise the shipping price, I end up paying
for the shipping myself. Has anyone found a price point that works, or another
service to process orders through?

Uh, Paypal takes $.30 + 3%. What does that have to do with your shipping fees?

Jen
 Author: zorbanj View Messages Posted By zorbanj
 Posted: Jan 9, 2023 19:47
 Subject: Re: PayPal fees
 Viewed: 45 times
 Topic: Shipping
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zorbanj (805)

Location:  USA, New Jersey
Member Since Contact Type Status
Dec 14, 2003 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: ZorbaNJ's Bricks
PayPal increased to $.49 + 3.49% in August 2021.

In Shipping, jennnifer writes:
  In Shipping, Freshbrick14000 writes:
  Hello,

Recently when I have been losing money due to processing fees that PayPal takes
with every order. No matter how much I raise the shipping price, I end up paying
for the shipping myself. Has anyone found a price point that works, or another
service to process orders through?

Uh, Paypal takes $.30 + 3%. What does that have to do with your shipping fees?

Jen
 Author: jennnifer View Messages Posted By jennnifer
 Posted: Jan 9, 2023 20:15
 Subject: Re: PayPal fees
 Viewed: 46 times
 Topic: Shipping
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jennnifer (3531)

Location:  USA, Illinois
Member Since Contact Type Status
Sep 8, 2009 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Old Grey Bricks
In Shipping, zorbanj writes:
  PayPal increased to $.49 + 3.49% in August 2021.


Got it! Thanks, I am 0 for 2 answering questions about shipping or payments.
I guess I should just stick to the Catalog work.

Jen
 Author: 1001bricks View Messages Posted By 1001bricks
 Posted: Jan 10, 2023 00:30
 Subject: Re: PayPal fees
 Viewed: 49 times
 Topic: Shipping
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1001bricks (52267)

Location:  France, Provence-Alpes-Côte d'Azur
Member Since Contact Type Status
Sep 6, 2005 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: 1001bricks
  Got it! Thanks, I am 0 for 2 answering questions about shipping or payments.
I guess I should just stick to the Catalog work.

Even for this... I'm not sure... as you're still about old grays
 Author: 1001bricks View Messages Posted By 1001bricks
 Posted: Jan 9, 2023 19:43
 Subject: Re: PayPal fees
 Viewed: 43 times
 Topic: Shipping
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1001bricks (52267)

Location:  France, Provence-Alpes-Côte d'Azur
Member Since Contact Type Status
Sep 6, 2005 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: 1001bricks
  Recently when I have been losing money due to processing fees that PayPal takes
with every order.

Recently? This is from PayPal day 1.

Maybe you're talking about Sales Taxes?
 Author: SezaR View Messages Posted By SezaR
 Posted: Jan 9, 2023 20:05
 Subject: Re: PayPal fees
 Viewed: 48 times
 Topic: Shipping
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SezaR (1380)

Location:  Canada, British Columbia
Member Since Contact Type Status
Jan 15, 2015 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Sezar's trains
In Shipping, Freshbrick14000 writes:
  Hello,

Recently when I have been losing money due to processing fees that PayPal takes
with every order. No matter how much I raise the shipping price, I end up paying
for the shipping myself. Has anyone found a price point that works, or another
service to process orders through?

What you say is very confusing. Let's assume:
Price of items: $100
Shipping costs: $10
Sales tax (only for buyers in the USA): $10

Buyer pays $120
PayPal fees will be $4.68.
These Paypal fees are for the whole order, not just for the shipping costs.
Only 10 * 0.039 = $0.39 of these fees are related to shipping costs.

If you want to implement instant checkout, you cannot include the whole paypal
fees into shipping costs because PayPal fees depends on the total value of items.
It is also against the rules of PayPal to charge PayPal fees in the USA or Canada
and some other countries.

I only include PayPal fees in the shipping costs as part of handling fees. So
I charge
10+0.039 = $10.39 (plus other handling fees for packing materials,...)
instead of $10 for shipping costs. But I don't charge the whole PayPal fees.

Your best options are either increase your prices, or just accept PayPal and
bricklink fees (all sellers pays them).
 Author: brac.brick View Messages Posted By brac.brick
 Posted: Jan 10, 2023 06:14
 Subject: Re: PayPal fees
 Viewed: 48 times
 Topic: Shipping
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brac.brick (1116)

Location:  USA, Massachusetts
Member Since Contact Type Status
May 19, 2015 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Brick & Brac
In Shipping, Freshbrick14000 writes:
  Hello,

Recently when I have been losing money due to processing fees that PayPal takes
with every order. No matter how much I raise the shipping price, I end up paying
for the shipping myself. Has anyone found a price point that works, or another
service to process orders through?

Raising the shipping price will raise the total value of the order and raise
the Paypal fee as well. It's $0.30 + 3% on every order who uses Paypal.
So either your shipping prices are too high or you aren't charging enough.
As another poster pointed out you can charge a handling fee for gas, packaging
materials, printing costs etc. If you want to sell on Bricklink, you have to
take Paypal payments so I would take a look at your shipping charges.
 Author: yorbrick View Messages Posted By yorbrick
 Posted: Jan 10, 2023 06:50
 Subject: Re: PayPal fees
 Viewed: 52 times
 Topic: Shipping
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yorbrick (1182)

Location:  United Kingdom, England
Member Since Contact Type Status
Apr 11, 2011 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Yorbricks
In Shipping, Freshbrick14000 writes:
  Hello,

Recently when I have been losing money due to processing fees that PayPal takes
with every order. No matter how much I raise the shipping price, I end up paying
for the shipping myself. Has anyone found a price point that works, or another
service to process orders through?

How are you setting prices?

Do you look at what others charge and charge that, or do you decide how much
you want to make when you sell each part and charge that?

If you do the former, then bear in mind your take-home price will be about 6-7%
lower due to BL and paypal fees. If the latter, take your price and multiple
it by 1.06 or 1.07 to get the price you should be charging to get your desired
after fees price.

Then add 30c, or whatever the fixed part of the PayPal fee is, to your handling
costs and multiple all shipping costs by 3 or 4%. That should just about cover
all the PP an BL fees.

It might be simpler to roll handling and shipping together in each shipping cost
you enter, so if for a particular type of order weight/volume it would come to
$2.34 then charge $2.50. If it came to $4.03, charge $4.00 and so on. That way
a buyer sees a single realistic charge rather than so many pennies for this and
another percentage for that, avoiding the need to do maths in their head to get
an idea about the total costs.
 Author: peregrinator View Messages Posted By peregrinator
 Posted: Jan 10, 2023 09:46
 Subject: Re: PayPal fees
 Viewed: 66 times
 Topic: Shipping
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peregrinator (767)

Location:  USA, New Jersey
Member Since Contact Type Status
Jan 21, 2003 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Faber Family Bricks
In Shipping, Freshbrick14000 writes:
  Hello,

Recently when I have been losing money due to processing fees that PayPal takes
with every order. No matter how much I raise the shipping price, I end up paying
for the shipping myself. Has anyone found a price point that works, or another
service to process orders through?

FWIW I went to your store and put something in my cart and the shipping cost
seemed about right, maybe even a bit high.

Are you buying postage commercially or at the retail counter? I'd recommend
switching to the former if you're doing the latter - you'll save yourself
a lot of money.