
04-26-2013, 03:37 PM
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Sage
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Quote:
Originally Posted by blueash
I don't think this really is the topic of the thread, but Paypal was bought by Ebay in 2002. Ebay and Paypal existed as separate businesses well before that. Ebay encourages the use of Paypal but many sellers on Ebay will accept other forms of payment. "PayPal is an acquirer, performing payment processing for online vendors, auction sites, and other commercial users, for which it charges a fee." Many online companies other than Ebay also use paypal as a payment option.
The seller places a product on the Ebay website and pays Ebay for the use of the website to place the object up for sale. When the object sells the seller and buyer have to come to an agreement on how the product will be paid as listed on the site this may include:
PayPal, Bill Me Later ,Credit cards and debit cards, Skrill, ProPay, Pay upon pickup, Escrow, Other payment methods
So Ebay collects a listing fee from the seller as well as usually 10% not 15% of the sales price. If it makes any money from Paypal which it certainly does, that is not from selling a product. Again, given this business model it is not clear to me why Ebay would be involved in the collection of sales taxes although I understand why they may wish to represent their sellers in the discussion
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Ebay charges a final value fee on the selling price plus shipping of 10%. Pay pal charges a fee on selling price and shipping of 3% plus $.30 per transaction.
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