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 Replies: 22 / Views: 4,609 |
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Valued Member
Canada
495 Posts |
New changes coming from paypal in a nutshell what does it all mean ?
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Rest in Peace
United States
2668 Posts |
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Pillar of the Community
Canada
2366 Posts |
If you're a Canadian seller with Canadian buyers then nothing. If you sell to the US then it's a fee increase from 2.9% to 3.7%. If you sell to any other country then it's a fee increase from 2.9% to 3.9%. I'm guessing they're hoping you'll think a fee increase of 1% or less (of the total) isn't significant. But if you do the math the other way then they've increased their cut of your sale by up to 34.5% which is slightly more than the rate of inflation...
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Pillar of the Community
Canada
2845 Posts |
This will also have a price impact on Canadian buyers especially if the US market is as lucrative for Canadian sellers as is suggested. Clearly list prices will be adjusted upward to absorb higher back-end fees otherwise the seller has no way of determining in advance which country the buyers reside and what the respective PayPal fees would be.
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Valued Member
Canada
109 Posts |
New USA rate is 3.7%+0.8% NOT just 3.7%
New INTNL.rate is 3.7%+1% NOT just 3.9%
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Pillar of the Community
United States
1373 Posts |
Earlier today I bought a 1858 large-date and 1886 large-6 nickel from two Canadian sellers. To them:...........I'm sorry!  |
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Pillar of the Community
 Canada
5400 Posts |
Totally insignificant. If you run ebay as a business, the tiny increase is simply a business expense. We have a merchant account and the increase works out to about 40 USD in 10000 USD in sales. Think we can handle it. If you gripe about expenses in business , you should not be in business. When I ran a bricks and mortar store there were a lot more headaches than small fee increases. Ask any merchant who takes credit cards what the banks and American Express take for fees.. Successful businesses are doers , failed businesses are complainers. Just saying. |
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Pillar of the Community
United States
1911 Posts |
So then US to US customers there isn't an increase? I haven't noticed anything Paypal in a little while.
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Pillar of the Community
Canada
1505 Posts |
I think it really depends on your margins, if you are a low margin, high volume operation this could be pretty devastating. If your Net income was 5%, you just lost 16% of your income, I would say that is a pretty big hit. Pacific I usually agree with most of what you say, but in this case I think you are wrong about what makes a successful business. A friends company that is not coin or ebay related is going to see there expenses increase by $10-15k, regardless of what % of revenue it works out to be, that is a significant amount of money (eg. 1 year university for their kid). Some sellers would probably benefit from getting a USD bank account and US paypal account. |
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Pillar of the Community
Canada
5400 Posts |
Purely agreed with your statement on the USD bank account and US PayPal account. Currency transaction fees are far more of a hit than the slight PayPal increase ( an annoyance).
As to your friends business , that is indeed tough. Seems everyone treats small business owners as an ATM these days.
The small shop I owned in Victoria years ago basically saw my shop lease and Commercial property taxes double from the original 5 year lease. Told them to go pound sand and started working the show circuit and Internet. It is going to happen more and more I am afraid.
Wish your friend well in their business endeavours, it really is getting tough out there for all Canadian businesses.
Not to get political, it is a world wide issue and no fault of anyone in charge in Ottawa. Currencies are in a devaluation to the bottom and commodities especially oil and base metals are taking a huge hit.
I think our American cousins could find themselves in a heap of trouble with a too strong dollar and nowhere to send their exports.
We just returned from the Las Vegas Coin show held mid December and there were not a lot of Canadians at the show or the Poker tables. Just too darn expensive!
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Pillar of the Community
Canada
5324 Posts |
40 cents dollar exchange today, I guess when they split paypal from ebay creating shareholder value for sure at least it's safe. Edited by john100
01/06/2016 6:28 pm
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Pillar of the Community
Canada
1751 Posts |
This just descrimatory, it shouldn't matter to where you are selling. It will effect the small sellers for sure, or those that are only trying to recoup money from an occasional sale. I used to keep a US paypal balance in order to buy coins. As many Canadian sellers list in USD. I find that to be frustrating because of conversion fees. I was thinking if I should list some of my excess coins. Now its just another headache to deal with. I bet many sellers will try and pass on the increase.
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Pillar of the Community
Canada
2366 Posts |
Quote:
failed businesses are complainers  Guess that was somebody else complaining in all those other posts about how they couldn't run a successful business with Canadian customers and had to move to the US to sustain themeselves! Quote:
When I ran a bricks and mortar store there were a lot more headaches than small fee increases. Ask any merchant who takes credit cards what the banks and American Express take for fees.. Guess this isn't complaining about a business that no longer exists either Quote:
The small shop I owned in Victoria years ago basically saw my shop lease and Commercial property taxes double from the original 5 year lease. Or this |
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Pillar of the Community
Canada
5400 Posts |
If you think I am getting into it with you , sadly mistaken.
Fact is I successfully transitioned from bricks and mortar to online and the show circuit and my business not only still exists it is thriving.
Fact is , dealing with customers in the US from Canada....is most profitable and pleasurable. I still live in Canada and happen to be close enough to the USA , to take full advantage of the American market for Canadian coins .
Kuh go for it , you can take all the shots you want . Fact is I am still successful and thriving and hardly complain at my lot in business.
Quite frankly I could care less what you think, I am too busy being successful. Have a nice day!
Edited by Pacificoin
01/06/2016 8:55 pm
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Pillar of the Community
United States
1285 Posts |
If PayPal charges 3.7% (or more) per transaction then conversion fees (USD to CAD) I may have to think about opening a Canadian bank account again. Thirty plus years ago I had a Canadian account specifically used for my numismatic purchases in Canada, I may have to open one again. Just for info, what kind of currency conversion fees are PayPal dealers charged?
Just as an aside I have a good friend who used to have a brick and mortar shop and at the end of his 5-year lease his monthly rent doubled plus; utilities almost triple; phone charges/internet up 75%; he now does the show circuit. Hates being away from home but has to make a living and he's doing well.
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Pillar of the Community
Canada
1463 Posts |
That's actually quite an increase. 2.9% to upwards of 4.7%. If I'm correct, you'd also be paying that on the full ebay payment, which they take upwards of 10% of. So that's Getting close to 16% after everything is said and done. Oh, and let's not forget the approximate 2% on exchange. Yikes. Of course this is passed to the consumer, so who blinks first, consumer or seller? I'd say for many this may be a bit of a disaster, seeing that some people go by the golden rule of a 15% mark up in sales. I don't think the poster Kuh is taking shots at pacific, I think pacific can come across as a little pretentious, which never translates well in communications. Edited by Alan
01/06/2016 9:57 pm
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Replies: 22 / Views: 4,609 |
Posted 01/06/2016 1:48 pm
