Tuesday, December 16, 2008
Using PayPal as a Payment Method on eBay
eBay auctions are more likely to be successful if the seller offers a variety of payment methods. It’s always a good idea to give buyers every possible chance to make a purchase. Checks and money orders work fine, but the preferred payment method for Ebay auctions is, and always has been, PayPal. If your auctions don’t list PayPal as a payment method, you might be turning away a lot of business. Here’s why:
PayPal was purchased by eBay, and the two services work seamlessly together. PayPal is like an online bank account. Users can deposit and withdraw money to and from their offline accounts, or they can make online purchases using their PayPal balance directly. Users like PayPal’s security and convenience. PayPal can also be used as a way to accept credit card payments from buyers, which is increasingly vital these days.
To sign up for PayPal, go to www.paypal.com. You can create a free account and start accepting payments immediately. Your PayPal account must be linked to an actual bank account or credit card. Note that Ebay pros recommend that you create a bank account specifically to use with PayPal. That way, if one of your transactions gets hit with a chargeback, your main bank account won’t be in danger of going negative.
PayPal will verify your account by sending two small auto-deposits of different amounts. Don’t get too excited, though. These deposits are just a few pennies. They take a couple of days to show up in your bank account. Once you see them, log back into PayPal to verify your account by entering the exact monetary amount of these deposits. Once your account is verified in this way, you can start withdrawing money to your offline account. You can accept payments into your PayPal account from the moment you open it, though.
Now that you’ve signed up for a PayPal account, you need to add Paypal as a payment option. This is a simple way to get more bidders and more money from your Ebay auctions. To add PayPal as a payment choice, go to your “Sell Your Item” details and check the box next to “PayPal”. Then you will need to enter the e-mail address you used to open your PayPal account. Once this is done, buyers will be able to pay you immediately via PayPal whenever an auction ends.
If you want to be able to deal with unlimited amounts of money each month in your PayPal account (which is recommended for high volume sellers), you should upgrade your account. Upgrading is free, and also gives you the option of accepting payment by credit card. To upgrade your PayPal account, simply log into PayPal and click “Enhance Account”. There will be a small fee taken from each transaction after you upgrade, but it is nominal when compared to the benefits of using PayPal.
Take a lesson from Ebay’s top sellers: give buyers as many payment choices as you can. This includes PayPal, Ebay’s number one preferred choice for payments.