So a few months ago I started making scarves and I am going to start selling them. I usually use Paypal for transactions but the other day someone suggested that I use money orders instead because there are fees using Paypal. The same person also said there have been a lot of people complaining about Paypal and not using it. Personally, I haven't heard anything negative of it until recently, so I wanted to know opinions from here about using Paypal. Thanks, Jaclyn
I have seen forum posts where people have mentioned complaints about it, but I have never had any problems with PayPal and, so far, I have always been pleased with them.
Keep in mind that there are fees for using money orders too. That is, I believe it is the person sending the money order who pays the fee - not you, the recipient (as is true in the case of PayPal).
So, if you choose to use PayPal you could simply charge a little bit more so that you receive what you wanted in the first place and the person paying does not have to pay that extra fee. Also, wouldn't the money order take longer for you to receive?
When you raise your prices so that the cut that PayPal takes is included, you ARE making your customer pay that extra fee, they just don't see it the way they do when they go to a bank or post office and have to visibly pay for a money order.
Yes, I concede that you are right about that, and you have stated it well.
I guess in my mind it (PP) seems more like a way of sharing that fee between the seller and the buyer than happens with the money order. So far, I haven't seen a way that the money order fee hits the seller at all. But I'm open to other explanations.
In my current "favorite book" How We Decide, there are descriptions of all kinds of research experiments that have shown how people perceive value and loss, when it comes to money. I think that my earlier (inadequate) statement ties in with some of those perceptions - who pays, who loses, who gains what?
The OP used the PayPal fee as one criterion in deciding whether PP were worth using - from her perspective as a seller; but it's worth taking into account the perspective of the buyer too. If I, as a buyer, see that I alone have to pay the fee for a money order, then I feel somewhat put upon and would possibly look at another scarf seller who was willing to take the fee out of what she herself would otherwise earn. I may end up paying the same amount of money either way, but it is not so obvious that I am the loser. It's really just a matter of psychology, as you indicated, and other buyers (and sellers) may respond differently.
yeah, I think the money order would take longer to receive..that is why I'm not sure about using it yet...I appreciate the comments
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