How Using Paypal Pays Off
Having a fully functional e-commerce site says a lot about a business, but it may not be within your business’s best interests to use a custom merchant service. For some Paypal is often the better choice.
People are so concerned with having all of the bells and whistles on their sites, but in truth it may be better to use Paypal. Paypal is an established and trustworthy transaction site, and a great tool for businesses to utilize.
Below is a breakdown of some of the key points to consider when deciding to use Paypal or a custom e-commerce site:
Set-up Cost – Paypal is better
Setting up and maintaining a custom e-commerce site can be extremely costly. Paypal’s premier account is free to set-up, making it the better choice for limited budgets.
Transaction Fees – Paypal is better
Custom e-commerce sites, in addition to charging a percentage of each transaction, also charge a monthly processing fee. Paypal only charges a transaction fee of about 3 percent.
Metrics – Custom E-commerce is better
A custom e-commerce site allows a business to track important metrics, like inventory and promotions. You can add products into a standard format to make your online store more cohesive. You will also be able to track how long people were in your “store,” and whether or not they dropped any products from their online cart. Using these tools allows a business to send follow-up e-mails and promotions based on a customers reporter interests.
Professionalism – Custom E-commerce is better
Being able to invest the time and resources into a custom online store makes a business seem more professional. Paypal is a professional site in itself, but anyone can sign up for an account and place checkout buttons on their site.
Trust – Paypal is better
Internet users are cautious about giving personal and financial information for lesser known sites. PayPal has huge credibility, operating in 190 markets and managing over 184 million accounts, more than 73 million of them active.
Payment Versatility – Paypal is better
Customers can use their debit card, credit card, e-check or any money in their Payal account. E-commerce sites can only accept debit or credit card.
Getting Your Money – Toss Up
E-commerce sites have to be tied into your merchant services and their policies on the payment of funds will vary slightly from vendor to vendor. Paypal puts restrictions on the amount of money new accounts can withdrawal each month. Once you are established, Paypal removes the restriction.
It really depends on needs, likes and wants of the company and what is most important to their online goals, but it is pretty clear to see that Paypal can be very effective for businesses who might be concerned about adding additional costs to their Website.
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