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Saturday, February 12, 2011

Paypal Fees

Paypal fees are inevitable—they are just part of the cost of doing business on eBay.  There are advantages and disadvantages, but since we are stuck with it, it’s a good idea to be totally aware of how Paypal fees work. 

Paypal fees are based on the volume of money that comes into your Paypal account each month.  If you receive $3,000 or less each month you will be charged 30¢ plus 2.9% of each transaction.  Keep in mind that your shipping charges will be included in the Paypal fees, too.  For example, if you sell an item for $10 (and they pay $2 SH) Paypal fees are based on the $12 your customer sends, not just the $10 for the item. 

This is why many sellers will not sell anything for under $10—after deducting eBay fees and Paypal fees, they are left with approximately 80% (depending on their eBay fees), so it is hardly worth their time (time is money!) to list the smaller items.  Remember: it takes the same amount of time to list a high priced item as a low priced one!

I found a free online Paypal fee calculator.  Keep a link on your desktop to remind yourself to be more aware of the Paypal fees. 

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