PayPal Changes Will Affect eBay Bullion Market
Posted: Sun Sep 13, 2015 10:23 pmCome October, PayPal is discontinuing its merchant rate. For several years, PayPal has offered a discounted rate for payment transactions for sellers who receive a minimum value of payments every month. Example, for accounts that receive at least $3,000 in payments per month, the rate is 2.5% instead of 2.9% for domestic transactions, for $10,000 minimum, the rate is 2.2%, etc.
While this isn't a large fee increase for most sellers, it's a big increase for sellers with low margin items, particularly bullion and coin dealers. Companies that are selling high volumes will be hit the hardest, unless they have a special negotiation with PayPal like Home Dump-O does.
Also, earlier this year eBay implemented a "special duration fee" of $1.00 for auctions with a duration of 3 days or less. 3 day auctions are popular for precious metals because of volatility in the spot prices.
Don't be surprised if some of your favorite online sellers raise their prices.
Just another case in point that eBay's worst enemy is eBay itself.
While this isn't a large fee increase for most sellers, it's a big increase for sellers with low margin items, particularly bullion and coin dealers. Companies that are selling high volumes will be hit the hardest, unless they have a special negotiation with PayPal like Home Dump-O does.
Also, earlier this year eBay implemented a "special duration fee" of $1.00 for auctions with a duration of 3 days or less. 3 day auctions are popular for precious metals because of volatility in the spot prices.
Don't be surprised if some of your favorite online sellers raise their prices.
Just another case in point that eBay's worst enemy is eBay itself.