- Impact
- 1,877
PayPal takes as high as 4% - 5% of the credit amount.
Then, there is the conversion rate factor as well. A huge chunk goes there, depending on the currency.
All big platforms like Sedo, Afternic, Dan, Flippa etc. have PayPal as one of the important and easy Payment options.
As a buyer, it makes sense to pay since you are paying at the price you agreed to, but as a seller, it is a big hole in the pocket. My credit is 6 - 7% lower.
For a $5,000 sale on Afternic, you pay:
1) A 20% commission (in this case, it would be $1000)
2) $4,000 gets credited in your account
3) PayPal takes approx 5%
4) Actual amount in the Paypal ($3,800)
5) Currency converts at a different of 2% (average for any country)
6) I receive $3,724
If a platform does the same at 2% commission, the same sale would look like this:
1) A 20% commission (in this case, it would be $1000)
2) $4,000 gets credited in your account
3) Platform takes approx 2% overall
4) I receive $3,920
Difference = $3,920 - $3,724 = $196.
Let's consider some more buffer and find it at $150 as the difference.
That is equal to the investment in 1 4L .com that can then have a potential to sell for high $$$ or low $$$$. Just by using a platform that takes higher commission, I am actually foregoing a possible 4 figure sale.
What's the option? Most buyers prefer PayPal because everyone has it. Is there an alternative to get away with 2% or so as the fees and not the 6-7% that we end up paying, without causing an issue with the deals, such that the buyer is also comfortable?
Then, there is the conversion rate factor as well. A huge chunk goes there, depending on the currency.
All big platforms like Sedo, Afternic, Dan, Flippa etc. have PayPal as one of the important and easy Payment options.
As a buyer, it makes sense to pay since you are paying at the price you agreed to, but as a seller, it is a big hole in the pocket. My credit is 6 - 7% lower.
For a $5,000 sale on Afternic, you pay:
1) A 20% commission (in this case, it would be $1000)
2) $4,000 gets credited in your account
3) PayPal takes approx 5%
4) Actual amount in the Paypal ($3,800)
5) Currency converts at a different of 2% (average for any country)
6) I receive $3,724
If a platform does the same at 2% commission, the same sale would look like this:
1) A 20% commission (in this case, it would be $1000)
2) $4,000 gets credited in your account
3) Platform takes approx 2% overall
4) I receive $3,920
Difference = $3,920 - $3,724 = $196.
Let's consider some more buffer and find it at $150 as the difference.
That is equal to the investment in 1 4L .com that can then have a potential to sell for high $$$ or low $$$$. Just by using a platform that takes higher commission, I am actually foregoing a possible 4 figure sale.
What's the option? Most buyers prefer PayPal because everyone has it. Is there an alternative to get away with 2% or so as the fees and not the 6-7% that we end up paying, without causing an issue with the deals, such that the buyer is also comfortable?