PayPal Micropayment

PayPal Micropayment

When selling digital downloads, make sure you’re not paying too much to accept a PayPal micropayment. Many downloads sell for just a dollar or two, so you can’t afford to pay too much in per-transaction charges. That cuts into your profit margin. Before signing up for any service that includes PayPal processing, make sure you know what the transaction fees for micropayments are.

Keep Fees To A Minimum
You always need to consider the bottom line when running a business. Your pricing needs to be competitive, but when fees eat too much profit, all your hard work won’t pay off. If you sell an MP3 download for only $1.50, for example, and the service you use charges 30 cents per transaction and then a percentage on top of that, plus a monthly service charge of $15, you might lose money instead of making it. After the micropayment transaction fees, you might only make $1.10 on the download, which means you need to sell 15 downloads a month just to break even.

Although most services charge some kind of transaction fee, make sure that the service you choose allows micropayments. With micropayments, payments under a certain amount, $2 for example, qualify for a smaller transaction fee. This can make a difference in your bottom line at the end of each month.

Digital Download Delivery Services
One way to reduce costs is to use an affordable digital delivery service that includes several functions under one cost. Many reputable companies such as include unlimited storage, free marketing, shopping cart access, PayPal and secure digital delivery. They also make allowances for PayPal micropayments, reducing the transaction fee to only one-tenth of the normal fee for small purchases. This allows you to save money overall, especially when you have many products under the micropayment umbrella.

Having a successful business means keeping an eye on every penny you spend selling your product. The smaller the sale price, the more important each penny you spend can be in your overall profit. Researching your overall costs, especially on a PayPal micropayment, is how you can make sure that you can be profitable selling your products online.

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