PayPal. Don’t Hate The Kid

Posted on Posted in Editorial

PayPal seems to get the short shrift from a lot of businesses when it comes to selling online. Most businesses want to jump right into full sized shopping cart system under their own domain name. We don’t think of one as ‘better’ than the other, just like we don’t think one content management system is the best. They are just different.
Why use a full shopping cart system under your own domain (your online ‘store’ as it were)? Here are a few starters:

  • You have already proven yourself with a low cost solution like PayPal and you need something more robust.
  • You are doing high volume so Paypal’s commissions are higher than the fees associated with a full cart setup.
  • You need a better payment gateway solution to manually enter transactions.
  • You can afford it.
  • You have more products than you care to manage in PayPal’s world. There is no ‘number’ of products, but i would not want to do more than 25 at launch.
  • You are adding the initial number of products now and not over time.

Sounds great. Why wouldn’t I want to choose that over PayPal (cons)?

  • The initial cost of setting up a PayPal shopping cart is only the cost of the labor. The initial setup of a full shopping cart store can be several thousand dollars plus setup fees and bank fees.
  • You MUST have a business merchant account at your bank. With PayPal you can use a personal account.
  • If you don’t sell anything with PayPal, there are no future losses. With a cart store, you will have monthly minimum fees.