Buyer or Seller Cover Paypal Fees

[redline61]

Hey all, I honestly don't know what to think on this one. I recently went to purchase an item from someone (very nice guy) and he wanted me to cover the PayPal fees. Part of me thinks this is reasonable, and then part of me thinks that this is a fee for selling your product online. Why would anyone send a stranger money without protection?

It is "buyer protection, so shouldn't the buyer pay this?"
My thoughts are this. I am the buyer, and I am blindly sending money to someone on the internet for a product. When I sell things, I believe that this payment is my responsibility because it gives me credibility. Just like when I sell on eBay. Part of the fees are to use their site, but part of the fees are for them taking your payment and giving it to you.

Honestly though, I can see this both ways. What does everyone think?

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[Barnaby’sdad]

Absolutely not the buyer. The fees are part of doing business in a venue (the internets) that gets the seller a much wider audience. If the seller wanted to “net” more $$$ from the sale, they should have stuck to a higher price.

Speaking of “net.” Whenever I see “net to me“ in a listing, I won’t bother messaging, as I’ve got no interest in wading into that debate with a seller.

 

[dos0711]

Either as long as it is stated upfront in the ad

 

[jeepers29]

I feel this is no different than travel insurance. The travel agent does not pay for it, the traveler does. Buyer wants coverage, buyer pays for it.

 

[Barnaby’sdad]

I feel this is no different than travel insurance. The travel agent does not pay for it, the traveler does. Buyer wants coverage, buyer pays for it.

That would be a valid comparison if the travel agent could be exposed and experience a financial loss if your trip didn’t go as planned. That’s not the case, as your trip getting cancelled is 100% your problem…unless you opt to purchase travel insurance.

This is along the lines of comparing health insurance and automotive insurance. There is two completely different reasons for having these, as with the comparison between travel and shipping insurance, but folks have historically enjoyed lumping these two together when it suits them (won’t open up that can of worms).

The other thing not mentioned is that the seller also benefits from the shipping insurance. Why? That item gets lost in transit, they’re going to get a claim from the buyer, and depending on how the funds were handled, may be entitled to a refund if their item doesn’t arrive.

I view shipping insurance as protection for the seller, just as much for the buyer. I can’t imagine shipping something without insurance.
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[LouisvEarlleJT]

(or just send it with the friends & family option and avoid fees?)

If it's some extra thing, like shipping insurance, then I (the buyer) would pay for it if I wanted it. Otherwise if it wasn't advertised as being part of the sale I assume the seller is just gonna ship it to me in the cheapest way possible.

 

[ShadowsPapa]

It's same as credit card fees - who pays? Do you pay that 2.5% when shopping at the store? Do you see "credit card fee" tacked onto the price of that bag of groceries or the bolts from the hardware store.
You ultimately pay for it in higher prices, but a seller should say "$xx cash, $yy paypal"

I tell my customers either do friends and family, or add 3% to the bill but another way is to advertise goods at a price that accounts for PP fees. And tell people there's a cash discount.

Ever seen the truck stop or other fuel stops advertise two different prices for diesel or gasoline?
There's a cash price and a CC price. Some simply advertise the lower price and then when you swipe your card at the pump, bump the price up. Ran into that on our trip home from FL. Hey, wait a minute - read the sign's fine print "cash".

PP fees are the same as the credit card fees stores pay, but it's also insurance against fraudulent sellers or protection to the buyer to ensure he actually gets a part.

I bought a NOS oil pump for a car I was restoring a few years ago. The seller left it in the shelf/display box and put a piece of tape on the flap on each end and sent if that way. He didn't pad it, didn't package it in corrugated cardboard, he left the freaking thing in the display box, not much better than a manilla envelope. That box arrived with a note "received at xxx post office empty". I took pictures and contacted PP about it. The seller got really pissy, I mean he had a fit and his messages were nasty and he claimed he ALWAYS shipped that way and he had it taped adequately and on and on. PP gave me a full refund. It wasn't even a contest. Shipping in a display or shelf box??? At least he could have wrapped the whole box in tape instead of one piece of tape on each end to keep the flaps tucked in.
Anyway, Paypal is just like a credit card. You can dispute a transaction if you don't receive an item or the item isn't the same one that was advertised and so on. So the fees are for protection and for the handling of the transaction. Just consider it a credit card as that's how it operates in many ways.
That being the case - IMO, who pays is up to the buyer and seller - what they agree on. If the seller doesn't want to take a big hit which can be 3 bucks or so on a $100 item it could smack the seller for a fair chunk of change, he needs to make it clear to the buyer, or have his price adjusted to cover the fees.

The other thing not mentioned is that the seller also benefits from the shipping insurance. Why? That item gets lost in transit, they’re going to get a claim from the buyer, and depending on how the funds were handled, may be entitled to a refund if their item doesn’t arrive.

I view shipping insurance as protection for the seller, just as much for the buyer. I can’t imagine shipping something without insurance.

I don't benefit a lick - the buyer does. I've got my money. But the buyer doesn't have his money OR the product.
I ship insured then charge the customer the price of shipping with insurance. But then I almost aways ship rare parts.
Once I'm paid - the shipping insurance is all for the customer. I have his money, he has no money and no part. If it gets lost or damaged, he gets reimbursed, Not me.

 

[Barnaby’sdad]

It's same as credit card fees - who pays? Do you pay that 2.5% when shopping at the store? Do you see "credit card fee" tacked onto the price of that bag of groceries or the bolts from the hardware store.
You ultimately pay for it in higher prices, but a seller should say "$xx cash, $yy paypal"

I tell my customers either do friends and family, or add 3% to the bill but another way is to advertise goods at a price that accounts for PP fees. And tell people there's a cash discount.

Ever seen the truck stop or other fuel stops advertise two different prices for diesel or gasoline?
There's a cash price and a CC price. Some simply advertise the lower price and then when you swipe your card at the pump, bump the price up. Ran into that on our trip home from FL. Hey, wait a minute - read the sign's fine print "cash".

PP fees are the same as the credit card fees stores pay, but it's also insurance against fraudulent sellers or protection to the buyer to ensure he actually gets a part.

I bought a NOS oil pump for a car I was restoring a few years ago. The seller left it in the shelf/display box and put a piece of tape on the flap on each end and sent if that way. He didn't pad it, didn't package it in corrugated cardboard, he left the freaking thing in the display box, not much better than a manilla envelope. That box arrived with a note "received at xxx post office empty". I took pictures and contacted PP about it. The seller got really pissy, I mean he had a fit and his messages were nasty and he claimed he ALWAYS shipped that way and he had it taped adequately and on and on. PP gave me a full refund. It wasn't even a contest. Shipping in a display or shelf box??? At least he could have wrapped the whole box in tape instead of one piece of tape on each end to keep the flaps tucked in.
Anyway, Paypal is just like a credit card. You can dispute a transaction if you don't receive an item or the item isn't the same one that was advertised and so on. So the fees are for protection and for the handling of the transaction. Just consider it a credit card as that's how it operates in many ways.
That being the case - IMO, who pays is up to the buyer and seller - what they agree on. If the seller doesn't want to take a big hit which can be 3 bucks or so on a $100 item it could smack the seller for a fair chunk of change, he needs to make it clear to the buyer, or have his price adjusted to cover the fees.



I don't benefit a lick - the buyer does. I've got my money. But the buyer doesn't have his money OR the product.
I ship insured then charge the customer the price of shipping with insurance. But then I almost aways ship rare parts.
Once I'm paid - the shipping insurance is all for the customer. I have his money, he has no money and no part. If it gets lost or damaged, he gets reimbursed, Not me.

Exactly. Bake it into the advertised price so it doesn’t even have to come up. If someone reaches out and says “I’m doing cash/F&F, can you take 3% off…” give them a discount if you feel so inclined.

Same with shipping. I wouldn’t even give the option to ship without insurance. I.e. I shipped an expensive watch off for service via the dealer. Sometime between them handing it off to the shipper and it arriving at the service center, it was removed from the box, replaced with something else, and the box kept moving along.

Who pays for that if you’re the shipper and it’s not insured? You REALLY think there aren’t cases where the intermediary (I.e. eBay, Paypal, etc.) didn’t side with the buyer…when they ended up taking the item themself and replacing it?

If something happens, both parties are made “whole” at the end of the day. I don’t see how insurance doesn’t benefit both parties.

 

[ShadowsPapa]

If something happens, both parties are made “whole” at the end of the day. I don’t see how insurance doesn’t benefit both parties.

I bought several items from a well-known seller in Canada. His packaging wasn't perfect but was good enough things should have been fine. He got paid, he shipped the items with insurance.
The box came smashed up and rare NOS parts inside broken, some lost when the box was punctured. He was already whole - he had his money.
Claim was submitted, I got money back.
Paypal wasn't even involved.

IMO, shipping something insured or not is a different topic from who should pay PP fees.
Paypal deals with it insured or not and since the seller gets his money taken back if the item doesn't arrive, then in that case it protects the seller because he's getting money taken away from him by PP, but it's really a different topic from how you pay for something.

I ship items that I restore with insurance. Customer pays actual shipping costs - and that includes insurance. There usually isn't any paypal to take money back away from me.

Anyone who uses paypal to receive money should ship insured or PP could take that money back away.
But if you don't use paypal, it's a different animal because the seller has his money. In that case the buyer should insist on the seller shipping it insured.

Don't even want to think about eBay and their tactics. I don't use them much any more and haven't sold anything on ebait in years.

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