Marketplace with PayPal payout?

[richtrading]

9 Jan exchange rates.

We sell via Escrow.com but get hit for the USD->GBP currency conversion cost. 2.7% (1.30 USD -> GBP). Costs us $20 for the payout bank transfer.

PayPal also give us 1.30 USD ->GBP (today 9 Jan), but at least they don't force us to convert it every time.

Today's spot rate is actually 1.27 USD ->GBP

Example Escrow.com transaction fees.

2500 USD

If Escrow Concierge:
If buyer pays by wire transfer or check $162.50
If buyer pays by credit card or PayPal $238.75

WITHOUT Concierge:
If buyer pays by wire transfer or check $81.25
If buyer pays by credit card or PayPal $157.50

Quick sum, assuming buyer pays PayPal, no concierge, and bank payout.
PayPal: $157
My bank: 2.7% of (2343 USD): $63

Net in USD is

$2280

Escrow.com has cost me 9% fees.

Afternic I believe charges me 20%.

I'd like to get these fees lower!

 

[frank-germany]

Germany is awesome

 

[richtrading]

it's standard in Germany
when you send an invoice as a business

I've done it in UK to Japan, but they didn't agree. Possibly those businesses based in same country are more confident.

 

[J Sokol]

Thanks for the NameCheap tips, @Bob Hawkes. I haven't had any luck selling there either - even listing at xx prices and renewing often. But I'll keep trying ...

 

[70ym]

There's a real opportunity for an entrepreneur to set up a domain Escrow company for low fees, eg 2%. They could dominate this market and make eg $160 for every $8000 sale.

Is there an appetite for such a service?


I also think about just accepting payments directly, if buyer trusts me, that also works well and saves all costs.

How often do you get buyers prepared to wire you $8000 directly though?

The BIN fee for Most marketplace in China registrar is 2%, and free for self escrow.

 

[Bob Hawkes]

Thanks for the NameCheap tips, @Bob Hawkes. I haven't had any luck selling there either - even listing at xx prices and renewing often. But I'll keep trying ...

I have recently learned an unofficial method on how to estimate marketplace sales. I'm not ready yet to share in detail (and the idea came to me from someone else) but one interesting thing it shows is that the rate of sales on the marketplace seems to go up and down a lot. I had noticed this personally, some months a lot of action, then many none.

I wish I had a way of knowing how many sales there are direct sales and how many come from someone promoting listings there. In almost all cases I link to my NCM listings on my own website and also often, not always, have that listing serve as the lander where someone entering the domain name go.

Good luck, and as mentioned above, the sales rate there definitely varies a lot from month to month.

Bob

 

[jeananderson]

Namesillo / 0 % / paypal payout . Free

 

[70ym]

Namesillo / 0 % / paypal payout . Free

namesilo BIN fee is 7.5%

 

[NicTraders]

There's a real opportunity for an entrepreneur to set up a domain Escrow company for low fees, eg 2%. They could dominate this market and make eg $160 for every $8000 sale.

Is there an appetite for such a service?


I also think about just accepting payments directly, if buyer trusts me, that also works well and saves all costs.

How often do you get buyers prepared to wire you $8000 directly though?

For people enquiring about escrow, I researched this after Payoneer Escrow clsed down. The notes I made at the time (though I haven;t got around to testing most services) were as follows:

"Alternatives might be Epik, Undeveloped, Sedo and various registrars have a marketplace/escrow service built in - Uniregistry, Namesilo)

Specialist escrow services to look at are: dn.com, Transpact.com, EscrowDomains.com, escrow.domains, Safefunds.com"

Obviously most of the first ones have been mentioned here. As for the specialist services, the one that I most wanted to try was Transpact (from memory they sounded good and at extremely low fees). However I have not used them yet myself, and for all of these I don't know about PayPal payout - but they are possibilities that you could research further.

 

[richtrading]

For people enquiring about escrow, I researched this after Payoneer Escrow clsed down. The notes I made at the time (though I haven;t got around to testing most services) were as follows:

"Alternatives might be Epik, Undeveloped, Sedo and various registrars have a marketplace/escrow service built in - Uniregistry, Namesilo)

Specialist escrow services to look at are: dn.com, Transpact.com, EscrowDomains.com, escrow.domains, Safefunds.com"

Obviously most of the first ones have been mentioned here. As for the specialist services, the one that I most wanted to try was Transpact (from memory they sounded good and at extremely low fees). However I have not used them yet myself, and for all of these I don't know about PayPal payout - but they are possibilities that you could research further.

I'm tempted to try TransferWise. Easy enough to open a USD account there, and see if buyers prepared to pay via that service.

 

[NicTraders]

I'm tempted to try TransferWise. Easy enough to open a USD account there, and see if buyers prepared to pay via that service.

I use TransferWise for payouts from some marketplaces. It certainly saves on some of the bank fees if doing an international transfer, or gets you a much better exchange rate compared to PayPal. You'll wait a few days for the funds to clear, but I'd prefer that than losing more $ through fees. I haven't yet asked buyers to ask to pay to my account direct though I am definitely going to do that one day as I'd get to keep even more of my funds.

 

[richtrading]

I use TransferWise for payouts from some marketplaces. It certainly saves on some of the bank fees if doing an international transfer, or gets you a much better exchange rate compared to PayPal. You'll wait a few days for the funds to clear, but I'd prefer that than losing more $ through fees. I haven't yet asked buyers to ask to pay to my account direct though I am definitely going to do that one day as I'd get to keep even more of my funds.

Sounds good!

I think I'll offer to buyer "You can pay me $500 by bank transfer, or additional $70 to cover exchange conversion and payout, so $570 via Escrow.com and you cover all Escrow.com fees"

 

[NicTraders]

Yeah, not a bad idea to give them the choice, then it's up to them...

 

[Ramesh Kumar G]

Escrow charges less.
But Afternic is also a Domain Advertiser/Marketplace ( 20% includes comission)
Escrow, BankTransfer or Paypal are best when we have direct buyer communication.

 

[toughdomains]

we charge 9% and we pay via wire, paypal, and bitcoin and escrow...so any transfer, bank network or conversion rates come out of the 9%

 

[NicTraders]

we charge 9% and we pay via wire, paypal, and bitcoin and escrow...so any transfer, bank network or conversion rates come out of the 9%

However in the OP's case of needing international transfer if he gets paid by wire he may still be charged bank fees I expect?... I have often had it that even though the sender doesn't charge transaction fees and my bank doesn't charge transaction fees, an 'intermediary bank' fee is charged. This gets rather annoying.

 

[richtrading]

However in the OP's case of needing international transfer if he gets paid by wire he may still be charged bank fees I expect?... I have often had it that even though the sender doesn't charge transaction fees and my bank doesn't charge transaction fees, an 'intermediary bank' fee is charged. This gets rather annoying.

yes, also 'intermediary fee' - are you also in UK? I usually just suffer the bad exchange rate ~-3%

What sort of intermediary fees have you been charged to receive USD?

 

[richtrading]

It is a shame Escrow don't allow Revolut either. Escrow.com don't allow Revolut, Monzo, TransferWise as they are "electronic money" and not traditional "banks"

 

[NicTraders]

yes, also 'intermediary fee' - are you also in UK? I usually just suffer the bad exchange rate ~-3%

What sort of intermediary fees have you been charged to receive USD?

No, I'm in Australia. Usually I get hit with a US$20 intermediary fee, which is a lot when you are already paying 9% commission on say a $200 sale (effectively losing 20% for a simple incoming sale from a lander). I'm exploring other options but it all takes time and they then have to be tested (things do not always work as described/assumed).

 

[alcy]

For people enquiring about escrow, I researched this after Payoneer Escrow clsed down. The notes I made at the time (though I haven;t got around to testing most services) were as follows:

"Alternatives might be Epik, Undeveloped, Sedo and various registrars have a marketplace/escrow service built in - Uniregistry, Namesilo)

Specialist escrow services to look at are: dn.com, Transpact.com, EscrowDomains.com, escrow.domains, Safefunds.com"

Obviously most of the first ones have been mentioned here. As for the specialist services, the one that I most wanted to try was Transpact (from memory they sounded good and at extremely low fees). However I have not used them yet myself, and for all of these I don't know about PayPal payout - but they are possibilities that you could research further.

most of those as u call them specialist services do not offer paypal.

 

[NicTraders]

most of those as u call them specialist services do not offer paypal.

Yep, quite correct. I try to avoid payouts by PayPal because their currency conversion rates are dreadful to say the least. If a domain sale is worth putting through escrow I'm probably losing more through PayPal's rates than I would be through bank conversion fees. But of course they are the easiest way to receive small payments (non-escrow). At the end of the day though, currently there is no perfect way for dealing internationally. It comes at a significant cost.