PayPal Micropayments with Sellfy
Many of our customers face a problem with micropayments when trying to sell songs, comics or other low cost products. The typical problem is fixed per-transaction costs that can range from $0.25 to $0.45 but usually are $0.30. This fee is applied to every transaction/purchase and when you are selling something for $1 it’s a huge cut in your earnings.
PayPal micropayments
When selling content it’s important to optimize your fees and this is where PayPal micropayments can help you.
Fee for PayPal micropayments are 5% + $.05 and it’s designed for merchants who process low-cost transactions (under $10). PayPal micropayments are opted in Sellfy and we already have a lot of sellers taking advantage of it – mainly for selling songs, photos, magazines and comics.
Micropayments example
In our space you see e-commerce services charging fixed per-transaction fees so let’s take $0.30 as an example. On Sellfy seller pays our service fee (5%)+ PayPal’s (5%+$0.05 if PayPal micropayments are enabled) per transaction so you can reduce the fixed fee to the minimum.
If digital product costs $1.00 and you are selling it on Sellfy and using PayPal as a payment processor, total transactions fees for you will be $0.15 ($0.05 to Sellfy and $0.10 for PayPal) which brings your profit to $0.85. With other e-commerce services where per-transaction fee will be $0.30 costs can grow up to $0.35 per purchase. The difference is huge, for example if seller sells 1000 copies of product.
Sellfy: 0.85$ x 1000= 850$
Others: 0.65$ x 1000= 650$
So it saves you** $200** right there!
Take an example from one of our clients Dean Trippe who shared his experience with us on Twitter. Dean is a comic author who sells with Sellfy using PayPal micropayments.
Insider info: Something Terrible downloads: 795. Each download is 99 cents, 5 of which go to @Sellfy, & 11 to @PayPal. @starr226 model idea. — TRIPPE OR TREAT (@deantrippe) October 1, 2013
This is what he wrote to us later:
*It literally took five minutes to upload my comic and add the “buy now” button to my site. The downloads notifications started coming in as soon as I shared the link with my fans, and they haven’t stopped yet. *
*The Sellfy team even messaged me on Twitter to wish me luck with the launch and emailed me about a broken URL I’d typed wrong into my product description. *
*That is not the kind of service you find just anywhere. “Something Terrible” is a very personal story, one I was passionate about sharing with my fans, and Sellfy made it possible. *
Thanks so much, you guys. Dean Trippe
Learn more about PayPal micropayments here and there is no additional configuration needed on Sellfy.
