Should I include the cost of Registered Post in a BIN price?

[*wheels*]

I need some advice from the experienced sellers here.

A couple of years ago I sold some tyres for my son on eBay. They were BIN with standard postage and pay by bank deposit. He has some more to sell and has asked if I could list them on eBay. We will have to take into account that buyers will probably use PayPal, I would if I was buying them off someone else. Should I just include the PayPal fees and Registered Post costs in the BIN price or give buyers the option of choosing bank deposit with ordinary post?

Last time the sell price was $160 for a pair so I'm guessing they will be about the same or higher. (I know they are expensive, I could buy car tyres for less than that, but these track riders insist on the best quality when it comes to their racing bikes!).

[*barny*]

G'Day Wheels,

Maybe you could include all the fees in the BIN, and offer a rebate (discount) of, say, $3-00 if bank deposit is used..

 

[*CountessA*]

Wheels, this is a copy of a post by Shaneoz addressing the issue.

    shaneoz@ebay.com View Listings | Report      13-03-09 06:01 EST      16 of 30
    Hi *charliette*,

    Are sellers allowed to insist on registered post for paypal payments?

    Yes they are. Below is my original answer;

    Yes, it is permitted for a seller to state in his or her listing that if a buyer is going to pay with paypal, they will be required to pay for Registered Post.

    As Llama-spit has described it would be acceptable to list the postage and handling options that way.

    Payment accepted by Paypal or Bank Deposit

    Postage and Handling $9.60

    Registered Post $2.75 (mandatory for Paypal only)

    Regards,

    Shane
Effectively this means you can make it clear that while PayPal payments are welcome, all such payments must choose the registered post option. I'd imagine tyres would be very heavy to post. Would you expect the winning bidder to pick up the tyres rather than have them sent?

You do need to keep in mind you can't add on the PayPal fees as an extra after the fact. If you need to cover the PayPal fees, logically you'd have to include them in your starting price in case, as you said, the buyer chooses PayPal.

[*wheels*]

Thanks Barny and Countess,

Actually the tyres (they are tubulars which attach to the rims) are very light. Two tyres wrapped in a bit of bubble wrap fit into a small postpak box from the Post Office and, from memory, postage was about $5.50.

I haven't looked into the PayPal fees - do you know are the fees based on total price including postage? Also, do the PayPal fees vary depending on if their PayPal is linked to a credit card or savings account?

[*CountessA*]

So light? Fantastic!

The PayPal fees are based on total price including postage, as you suspected. That means your starting price should take that into account. I think a lot of buyers aren't aware of this, and don't realise when they look at the postage they're charged that PayPal does take a percentage.

Depending on what sort of PayPal account you have, it may make a difference if the buyer pays using a credit card or savings account. This is because you can't accept credit card payments with a Personal account - therefore you would have to upgrade to Premier or Business, and that of course means receiving funds will incur a cost. If you already have a Premier or Business PayPal account, it won't make any difference how the buyer pays. (You should be aware, though, if the buyer pays by e-cheque - from his bank account - it may take more than a week for the funds to clear and your buyer might be impatient. Sellers have mentioned they consider it essential to let the buyer know the estimated timeframe before funds clear.)

From this page, PayPal offers you three account options:

• Personal
• Premier
• Business

PayPal charges Premier and Business accounts to receive payments. Personal accounts are free, but may not receive debit or credit card payments. The fees are charged to your PayPal account and not your eBay account.

Fee Summary:

	Personal Account	Premier/Business Account
Open an Account	Free	Free
Send Money	Free	Free
Withdraw Funds	Free for $150.00 AUD or more, $1.00 AUD for $149.99 AUD or less to bank accounts in Australia	Free for $150.00 AUD or more, $1.00 AUD for $149.99 AUD or less to bank accounts in Australia
Add Funds	Free	Free
Receive Funds	Free	1.1% + $0.30 AUD to 2.4% + $0.30 AUD
Multiple Currency Transactions	Exchange rate includes a 2.5% fee*	Exchange rate includes a 2.5% fee*

* If your transaction involves a currency conversion, it will be completed at a retail foreign exchange rate determined by PayPal, which is adjusted regularly, based on market conditions. This exchange rate includes a 2.5% spread above the wholesale exchange rate at which PayPal obtains foreign currency, and the spread is retained by PayPal. The specific exchange rate that applies to your multiple currency transaction will be displayed at the time of the transaction.
Domestic

To compare your total cost against other merchant options, visit PayPal.
To find out more about the fees involved in receiving payments from buyers in Australia visit PayPal's Fees page
To find out more about the fees involved in accepting payments from other countries, visit PayPal's Cross Border information page.

Fees for receiving domestic payments.

Monthly sales	Price per transaction
$0.00 AUD - $5,000.00 AUD	2.4% + $0.30 AUD
$5,000.01 AUD - $15,000.00 AUD	2.0% + $0.30 AUD
$15,000.01 AUD - $150,000.00 AUD	1.5% + $0.30 AUD
> $150,000.00 AUD	1.1% + $0.30 AUD

Flat fee will be charged as follows: $0.30 AUD for payments in Australian Dollars.

Fees for receiving eCheque payments will not exceed $7.50 AUD per transaction.