Accepting payments on eBay
July 26, 2007 by MindanaoBob
Filed under Feature, My Past Life
OK, so you have listed your items for sale on eBay, you are so happy because somebody actually bought what you are selling. But wait. How do you get paid? Especially if you are in the Philippines.
Well, there are a number of payment methods that you can consider. Let’s have a look at some of them.
Paypal - If you are going to be successful on eBay, you absolutely must accept Paypal. You have no choice! About 90% of eBay buyers expect to pay with Paypal, and if you don’t accept Paypal, they won’t bid. It’s that simple. Paypal got started back in the late 90’s. It was actually two different companies at the time, both doing the same thing, allowing users to take and send payments online. If I recall, there was Paypal.com and there was another company called X.com. X.com was the most successful at that time, as I recall,, and Paypal bought them out, thus becoming the only player in the game. Paypal went on to be bought up by eBay, and they are now eBay’s official payment system. If at all possible, accept Paypal for payments. Paypal is now doing business in the Philippines, although the accounts in the Philippines have some limits. If possible, set up a US account! If you have family in the USA, or friends, perhaps they can help you set it up.
Accepting Payments on eBay
Money Orders – You can accept money orders for payment on the goods. Be careful, some people will send you the green money orders from the US Postal Service – those are very popular to use in the States. However, those particular money orders are for US Domestic Use only, they cannot be cashed here. The Postal Service also sells a pink colored money order that can be cashed worldwide, and that is the one that you need to accept. There are lots of other brands of money orders too, and they are fine, as long as they are for international use. Keep in mind that with money orders, the bank here will make you wait a while before you get the funds, to make sure the money order clears. As long as you have enough cash to support the business while you are waiting to be paid, this is not a problem. If you receive a money order from the USA, you need to ship out the goods right away, because your customers will not accept additional waiting time due to a money order payment.
Checks – I do not recommend that you accept checks if you are in the Philippines. I do accept checks here, but I have a US bank account, and I send the checks back to the USA for deposit. If you don’t have a US account, the clearing time is too long, and the risk of getting a bad check must be considered. My advice is to avoid check payments.
Xoom.com – Xoom.com is a money transfer service that sends money all over the world, although I believe that the Philippines is their number one destination. I have used Xoom.com and been happy with their service in the past.
2Checkout.com – 2Checkout is a service similar to Paypal. eBay customers will be more comfortable using Paypal, but 2Checkout will give a full range of services to customers in the Philippines. I have used 2checkout extensively for about 5 years now, and I am very happy with them. In addition to using them for auction payments, they are also useful for e-commerce stores and such. I use 2Checkout on all of my online stores.
Western Union – Western Union is widely known, and customers will probably be comfortable using it. However, Western Union is expensive. Your customer probably won’t want to pay the fees, so the Western Union fees will probably come out of your profits. You need to plan for this! However, using Western Union in the Philippines is very easy to do, and there are thousands of locations where you can pick up your cash!
Getting payments is probably the most important part of the whole business! Without getting the money, you wouldn’t be interested in doing it anyway, right? Try out some of these different methods, and see which you prefer! Also, if possible, offer multiple payment methods on your auctions so that payment will be easy and convenient for your customer!
How about you, do you know of payment services that I have not listed here? If so, please let me know by leaving a comment!
Bob,
Thank you for all of the information. It is funny to me that you use/ mention http://www.Xoom.com. As this is one of my means of completing International transactions for my business here in the Philippines. And so far it has been a great reliable service. I would recomend this as a back-up service for anyone that may have the need.
Thank You,
Mike K.
Hi Mike K. – Thanks for leaving your comment, it’s nice to have you visit. I also have been happy with Xoom when I’ve used them in the past. They are a good company to deal with.
Two quick questions for you,
1) Do you have a website building tool/site? (This is a bit off subject but, I am not to keen on the this issue.)
2) Would you recommend putting veteran owned status on your website?
Thanks again for the link to your site. I have already pulled and printed a lot of useful information that I was having a hard time obtaining.
Mike
at long last, a new post! And something that i ve been thinking about recently. Bob, i know it is quite hard to generate a worthy article like you always do. But can you tell us when are you going to post again. Its killing me to death everytime i goof off from my work and surf the net just to check if you already have a new post.
anyways, im quite gald that you made a post and more excited bec this same issue is bugging me for a week now.
You see, im very serious right now about heeding you about selling in ebay. Ive been goofing off alot from work just to explore the net for possible things to sell. I settled for clothings, T-shirts, long shirts, baby clothes. You know, tees that have funny messages. I found a website that offers to print the design when some one orders. all i have to do is provide the design. Although the price is a little steep, thats totally a different topic.
Ok, about payment processing. Im quite familiar with paypal but the problem is filipinos have alot of restrictions in using it, for one, we cant withdraw funds from paypal to a local bank account. More unfortunate, is that i dont have someone in the state who could create a US bank account for me. Now, ive been readin g the help section of Xoom.com and according to them, they also accept paypal as payment. as well as credit cards.
If i just accept xoom payments for all of by items, that would limit the potential of selling to a huge market, which according to ebay, they have 125,000 active members who regulary goes online to shop or sell. Eventhough xoom accepts paypal payments, buyers still needs to register as a member for them to pay me. Also, the fees although much cheaper that Western union, is still higher that waht paypal offers. Although this factors may be a small problem for some, i do believe that the inconvenience of registering as a member of another payment processor, which is not very famous as well as paypal will greatly impact a would be seller like me.
I also believe that paypal is the way to go since most people buying in ebay expect to pay via paypal. I would never accept money orders due to scammers who made paying with money orders for online items a specialised profession. checks took a long time to be cleared; and western union is, well you know, sooo expensive.
ive only seen 2checkout after checkingout your online store Bob, and you have to pay, if my memory is still function well,45 usd.
so my question bob, is this.What if i dont have a relative abroad to set up an account for me, is there another way to accept paypal. Or we just have to be content with xoom.
also, there is another thing that is not clear to me: will paypal limit an account because it was set up with a phil-based ip address? what if i have a us based bank account and verified that bank accoutn with paypal, would they lift the limitations?
For other method im looking into, there is direct bank transfer. I could set up a BPI account in here and allow my buyers to pay me using that. But a friend already pointed out that buyers may feel uncomfortable doing that. Besides, it takes about a week for the fund to clear. There is also IKOBO that acepts Mastercards, but it post the same problem of that of XOOM. Other processors, would be e-gold and e-bullion, but they dont accept credit card and the buyers must have e-gold funds. Although popular in the online investment community, not so with ebayers.
right know im still stumped on the best thing to do know. Actually, i have only two choices, to just accept xoom for now until i acquire a US made paypal account or just pay for the service of 2checkout.
Bob, can you help me sort this out.
Hi Mike K. – I am not sure what you mean by a website building/tool. Do you mean a tool for building websites? Almost all of my sites are either Wordpress blogs or OSCommerce stores. Those sites themselves are “built” by the software they run. For customization of the sites, I employee somebody to do the coding on that for me.
Sure, why not list that your site is veteran owned. I mean, I think that it might get a few extra customers, and I can’t imagine that it would turn anybody off. So, I would do it.
Glad to know that you are finding the site useful!
Jerico – I didn’t forget to respond to you. I am thinking about options for you to consider. Give me a few days to get back to you. Your question is maybe the most challenging for those doing business in the Philippines.
Do you have any particular sites I could use to help with setting up a store? I figured the veteran status would improve sales.
Thanks,
Mike
Hi Mike – For a web store I use OSCommerce software. You can download it from http://www.oscommerce.com. That site (particularly the forum) will give you lots of tips and suggestions on setup and customization. I will admit, the learning curve is steep for OScommerce, so you might want to hire somebody to help you with customization.
Hi Jerico – Sorry it took me a few extra days to get back to you on your question! I have been doing a little research on this for you. I find that there are plenty of items being sold on eBay using Xoom.com for the payment method. People are even using “Paypal accepted through Xoom.com” and with a button on their auction that says “Paypal Powered by Xoom.” I believe that this method would work for you. You may have a few less sales, but overall, I think it will work out fine! Give it a try!
For an example of how they are doing the payment through Xoom, check here.
Hi bob! sorry it took me so long to leave a message here. Although i check this blog and LIP blog daily, i really dont have the time to leavea post sometimes (The boss might be watching, hehe)
Thanks for the answer Bob. Ive check the link you gave me and it seems that the guy has a lot of sales, seeing the feedback he is getting. I already signed up for a xoom account by the way and i already read ALL the help articles in the help section. But something is not yet clear. (Im testing your patience here
) Once you receive the money from a paypal payment, does it go directly to your bank account or can i left the money sitting in Xoom to accumulate before withdrawing so i can save on cost? I tried to check their website about it,but i never got any answer even after reading every single page their website has. You see, im thinking, if they will automatically withdraw the money, less the fees, that would be a big lost for me, imagine 3.50 usd for every transaction! If i can let the money sit in my account, then i can avail of the big saving in withdrawing big chunks of money.
by the way Bob, hopefully you can give us some tips on listing add-ons… should we really pay extra to put our listing on the frontpage? how about adding an image gallery? Or paying 20cents to have the listing highlighted? I hope you can give some insights on this. Its very tempting to put in an extra money just to get noticed.
Bob,
I recently got excited by this and your other Blogs, since I will be moving to the Philippines (Tacloban City, Leyte) as soon as I get my ducks-in-a-row. I am VERY interested in your ecommerce and have just purchased 4 websites off ebay (Very Cheap). They all have the same Drop Ship company and I just found out that they DO NOT make International Shipments! I’m wondering why they (Easy CGI websites) sent out registrations for International Search Engines. Needless to say, this will really cut down on potential orders. Bob, I am really new at this put I want to make a ‘Go’ of it so that when I finally move to the hilippines, I’ll have a decent means of income established that can be run from our home. Any Comments?
Hi Jerico – At this time, I don’t think that you can build up an account at Xoom. Maybe you should write to them with the suggestion for that! It might encourage them to start up a new service, because I think it’s a good idea.
Also, I will talk about add on options for your ads on a future post.
Hi Steve – I don’t encourage using drop ship services for your eBay sales. Many are unreliable, and you are basically putting your reputation into their hands when you do that. Find ways to fulfill the orders yourself, without relying on others to do that.
I am curious, the website that you registered when you left your comment (gorgeousflower.com), is that one of them that you purchased from eBay?
Bob- Yeah, i think i will write them a suggestion. I use to have an account with http://www.ikobo.com, another money transfer company and thats how they do it, but they dont accept paypal like xoom.
hi steve- i visited gorgeousflower.com. pretty nice site,simple and easy to navigate. wish you all the luck with it. Pretty bad you cant do business worldwide.
By the way, care to tell us how much you paid for that site? Coz, i once designed website for a friend(its free of course! hehe) and i just thought that turnkey website may have a market in ebay.
Hi Jerico – Good idea on Xoom.
Regarding Steve’s flower site. Did you notice that there are Google ads on it? I am betting that the person who sold the site on eBay put those ads on the site with his publisher number, and he is earning money from Steve’s site! I am almost certain of it, and that is why I was asking Steve if that is one of the sites he bought.
I encourage Steve and everybody else to always make sure that any ads on the sites that you own, are making money for YOU, not somebody else!
Bob,
Yes, this is, indeed, one of my websites. I am struggling to get these ‘Up and Running’ As I told you, I really excited about them, but I have no real experience with this type of business. I wouldn’t even know how to go about obtaining flowers, plants, or items that the websites offer to take your suggestion to heart. I really miss my wife and so I am getting a bit “Tense” on getting something in-place soon to accomplish my goal. The Two months I was there in Tacloban (May and June) were wonderful and I guess I’m being too impatient to be reunited. Anyway, Bob, I really appreciate your feedback and suggestions. Is there some type of book or manual on this that I can read? Thanks.
Steve
Bob,
My payment for the gorgeous flowers website was $59.00. I also bought 3 other websites for a total of $300.00 (ALL 4 sites) with a home decorating site costing the most at $200.00 I DESPERATELY need to be schooled/trained on the management and operation of them. the Easy CGI Domains website training help is, in my opinion, inadequate. Their answers to my questions on their ‘Trouble Ticket’ system are short and not very helpful, either. When I queried them concerning the submittal to International Search Engines when their dropship company (BC Dropshippers) doesn’t ship internationally, they sort of ‘poo-pooed’ the question by answering that I could still use these search engines since many foreigners have friends and relatives in the U.S.
yes, I’m sure that that is true. Again, thank you for your input.
Steve
Hi Steve – I am curious, the Google advertising on the site – is that something you put there, or it was already in place? My feeling is that it was already in place, and the people who sold you the site are looking to make money from the site forever by having the advertising in place. In addition, now you mentioned that they have their own wholesaler, which means that they sold you the site, they will earn money from the Google ads, and they will also earn money because you will buy the flowers from them (and probably at an inflated price). You got the site quite cheap, I can’t argue with that, but honestly the way they have everything set up, they should have given you the site for free! They have quite a business going there!
By the way, Steve, you mention that you really need and want to be trained on how to operate the site and the business. If you happen to make it to Davao, I can train you on that. It is an OSCommerce shopping cart, and I have been using OSCommerce for years. I would have no trouble with it, and would be happy to give you training on the procedures if you are in the area.
Bob,
Thank you! I will, indeed try to get down to Davao to look you up and to train on the OSCommerce. I am not too sure when my, now almost nil, financeswill allow me to do that, but I will definitely accept your offer and would love to bring my wife along as well. After all, a Team is a Team. I guess I’m feeling a bit foolish about these sites now. I thought that they would be a great way to get “My feet wet” and that a somewhat ‘Turnkey’ operation could teach me a bit about ecommerce. I’m not sure I even want to pursue them now. Kind of discouraging, but it seems as though your observations are on the Bullseye. I am truly grateful to you for your input and suggestions. Again, Thank You.
Steve
Hi Steve – no need to feel foolish! It’s a learning process, and we all have to learn. Lord knows that I have done plenty of learning in the past myself, and am still learning all the time!
Good luck to you.
hi bob, steve, just want to left a short comment (still at work
) Steve, bob is right! Fools are those who dont act! You want to make something happen and you grab the opportunity when it passed you. Your website is there already, you only need to learn a few more basic things, and the next step to that is to market your site.Much like traditional advertising, let people know that your business exist.
For that google adsense, just create your account in google and change the affiliate id with your’s.
sorry.. cant leave a better post.. i need to go, till next time.
Hi Steve and Jerico – Yep, Jerico, your thoughts are right on! I hope Steve will take that to heart!
Thanks Jerico and Bob! Much appreciated! Just finished talking with my wife. She is definitely my inspiration to make this work to get back over there soon. You guys are the BEST!
Steve
Hi Bob,
im still trying to figure out if im really sticking with xoom.com. I had emailed them regarding building up an account with them and withdrawing in bulk. After two hours, they sent me an answer that it is their policy not to keep money with them for a long period of time to protect themselves.
the $3.50 per transaction (minimum fee) still heavy in the pocket. I just calculated the money that this might eat up and if you are selling t-shirt that sells for 20-30 dollars a pop, with a low profit margin, a fee of 3.5 eats up atleast 25% of your profit.
so i look for an alternative and went to the website of Moneybooker.com. I dont know if you ever heard of it before Bob, but it seems that it is one of the preferred payment processors of Ebay, like Xoom. I come across it once when im still active in Pinoymoneytalk.com, Moneybooker is a popular money transfer for those who do sport arbitrage…
Anyway, i wen to their website and they have lower fees than Xoom. To withdraw your money to your bank account you pay a fix rate of 2.4 usd but unlike Xoom, you can let the money accumulate in their system. Credit card stransaction has a 1.9% fee. Funding with bank transfer is free. Receiving money is free and withdrawing by check is, i think, 4 usd. What a saving! Although it does not accept Paypal, it does accept all major credit card and even bank transfer. So right know, im thinking of offering both Xoom and Moneybooker. I will use moneybooker to handle credit card payments and use only xoom for paypal payments. Im still trying to research on this company, trying to check if it has a good reputation inthe auction industry. Perhaps you have some experience with Moneybooker? Do you think it would work, offering both?
Hi Jerico – I am familiar with Moneybookers. I can’t recommend one way or another, because I have not tried them. I have never heard anything bad about them, though, so probably it is a good system!
hi bob!
I just got my Eon card today. i already funded it some bucks so i can use it, although according to the bank manager, it will take 5 more days before i can use it. they still need to send the documents i filled up to Cebu…Im already looking in ebay for cheap items i can buy. I really love ebooks and there are alot i ebay. they are price for a dollar or less, so iget ill buy some of those to boost my feedback. I also join Auctiva.com and tinker with their service and i find a precious resource for sellers. they have this free service for scheduled listing. you could upload pictures for your listing, minimizing the fees you nned to pay ebay. its a nice help foe any sellers. How about you bob? did you use third party services before, how about dropshipping? It seems that sellers keeps talking about dropshipping.
Hi Jerico – Great news that you got your eon card! I didn’t use Auctiva, but used a little more robust system called Marketworks.com. I do believe that using an auction management service is a good way to go!
I don’t go for the dropshipping if at all possible. I like to keep control over things myself, and with the dropshipper you are giving them too much control, in my opinion.
just testing this new plugin.
Hi Jerico – Great!
How do you use dropshipping?
Hello billige Kontaklinsen – I specifically do not use dropshipping. I highly recommend against using dropshipping. Based on your website, it appears that you are a drop shipper, and your comment may just be comment spam, I am not sure. I do not use dropshipping because I don’t like giving control over my business reputation to others, so I like to control my own shipping.