Paypal Selling Fees on low priced items and Refunds

[3dropbears]

Hi, Could anyone clarify the fees charged by Paypal on low priced sales please?

eg. Listing an item at auction, only 1c starting bid. Am just wanting to give items away basically if someone has a use for them. 

Items are pick up only. If the buyer wins at a few cents and pays with Paypal, what are the fees on 1c for example?

Is there a transaction fee for using Paypal regardless of the price of the item?

Also refunds.

Some buyers have been bidding on my local pick up items but not picking up. Typically they don't contact, but some wait roughly two days, (before I can report an unpaid case), pay with Paypal then say they won't pick up.  If the buyer paid 99c with Paypal to avoid an unpaid case and I then have to refund the buyer, does Paypal charge me a transaction fee anyway for the sale, if so, how much?

Thanks

[maranock]

I suggest you put a reasonable price on your items so that people who win actually value and want them enough to pick them up. If you don't want the moeny you can always donate it to charity (or to me, lol). The fees do not make it worth giving away on Ebay. If you really want to give them away try your local FB groups, there are freecycle groups in most areas.

[wide-world-of-stamps · Accepted solution]

Paypal charges 30c per transaction, non refundable.

They also charge a percentage fee (around 2.6% I think). You get this back if you refund the buyer.

Other members might have more information for you.

[3dropbears]

Happy to donate to you.. can you pick up?!

Thanks, it's helpful to use the various sites available. 

Certainly it's not worth it profitwise and with eBay Paypal fees, of course, but I am interested in giving away some items rather than them being thrown out, if someone else wants them. Charities don't take some items, especially if they are parts or have some damage and I find eBay seems to reach more people who are interested in these type of items. I always list on Freecycle first, if after a week no one has been interested, list them cheap on eBay.  Surprisingly what no one wanted for free can end up sold on eBay quickly and easily to locals, and they do collect. All fine. Depends a lot on timing. Can do a few rounds on freecycle and someone whomdidn't see them before will come and take a whole lot at once.

Agree with putting a higher price on items so people value them and want them, this tends to bring serious buyers who actually do want the items for the items themselves and not just a cheapy they won at auction.  Generally, I list at buy it now with a price, but these are really free items I'm just wanting to recycle/ donate.

[3dropbears]

Thank you.

Perhaps someone will know.

Would that mean if a buyer purchased something for 10c, Paypal will take the 10c from the sale and 20c from my bank for their 30c fee. . 

and then if the buyer is refunded, Paypal will keep the initial 30c transaction fee, and take another 10c from my bank to refund the buyer?

It could get messy if you have a bidder who bids on multiple cheap items and then wants to cancel.

[joztamps]

1. Keep all the items and/or drop them down the op shop and bin the rest.

2. For each item thus solved, donate 30c to your favourite charity, which can use it better than paypal.

[brerrabbit585]

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@3dropbears wrote:

Thank you.

Perhaps someone will know.

Would that mean if a buyer purchased something for 10c, Paypal will take the 10c from the sale and 20c from my bank for their 30c fee. . 

and then if the buyer is refunded, Paypal will keep the initial 30c transaction fee, and take another 10c from my bank to refund the buyer?

It could get messy if you have a bidder who bids on multiple cheap items and then wants to cancel.

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I don't know how paypal would collect the other 20c but if you have a bank account connected they'd probably take it from that.  And yes, if the buyer is refunded pp would take another 10c from you.  But if it's only 10c I wouldn't bother refunding unless they opened a case.

I'd probably ask a bit more so you have a better chance of getting buyers who are more genuine.  

Have you tried 'marketplace' on facebook rather than the local buy & sell groups?  When anyone does a search they only see local items, but they can change it so they can see items up to 100km away, or so you search a different area.

[3dropbears]

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@brerrabbit585 wrote:

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@3dropbears wrote:

Thank you.

Perhaps someone will know.

Would that mean if a buyer purchased something for 10c, Paypal will take the 10c from the sale and 20c from my bank for their 30c fee. . 

and then if the buyer is refunded, Paypal will keep the initial 30c transaction fee, and take another 10c from my bank to refund the buyer?

It could get messy if you have a bidder who bids on multiple cheap items and then wants to cancel.

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I don't know how paypal would collect the other 20c but if you have a bank account connected they'd probably take it from that.  And yes, if the buyer is refunded pp would take another 10c from you.  But if it's only 10c I wouldn't bother refunding unless they opened a case.

I'd probably ask a bit more so you have a better chance of getting buyers who are more genuine.  

Have you tried 'marketplace' on facebook rather than the local buy & sell groups?  When anyone does a search they only see local items, but they can change it so they can see items up to 100km away, or so you search a different area.

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Thanks for the tips. If they open a case is that an automatic defect to the seller's account?

A buyer just paid 99c and then immediately wrote saying it's not possible to pick up. He bid 4x on the item. So basically, if I refund him, I'll be charged 30c for the priviledge. . and if I don't, Paypal takes 30c plus the extra % fee, so it is best to not refund in this instance?

Well, it's all learning. I'm not on facebook, though that sounds like a good option for the local market.

[3dropbears]

True! Took a lot down to the Salvos over the years, and they don't charge 30c per box donated 🙂 plus can make money themselves.
Great if we could opt that Paypal donate the fee money to charity! I've moved quite a few things just by putting them out the front the day before a council clean up that you'd think was for the bin.

[3dropbears]

Thanks everyone for your input. The consensus is it's best not to list at low price.  For items you're happy to give for free good idea to donate directly to charity or use a site that doesn't force Paypal when listing. Nice idea Joztamps, thank you!

To conclude, Paypal charges a non refundable fee on the sale, even if the sale is cancelled and refunded.