"What's with eBay's $2 discount?" Topic
4 Posts
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 John the OFM  | 09 Mar 2009 10:08 a.m. PST |
I just put up a few auctions last night.
It seems that eBay is offering a $2 USD discount for those who use PayPal.
What's up with that?
Who pays for it?
Does it come off MY payment? |
| adub74 | 09 Mar 2009 11:20 a.m. PST |
I would presume that PayPal is paying the $2 USD discount much in the same way as my credit card pays me airline miles. In the micro scale, PayPal is giving you a discount. On the macro scale the 'discount' is made up by fees charged on every purchase now into perputitiy. Basically, you're paying for your own discount. But if you don't take the discount, you're paying for everyone elses. Same sort of trick as vision insurance. |
 enfant perdus | 09 Mar 2009 11:57 a.m. PST |
They had a 10% (or 15%?) off coupon a few months ago that raised the same questions. Sellers get their full share, buyers get the discount and Paypal eats the difference. It's a way to drive sales, since people don't want to "lose" that discount. Frankly I thought the % off coupon was smarter since it encouraged people to go for a high dollar item in order to get the most bang for their buck. |
| The Nigerian Lead Minister | 09 Mar 2009 4:45 p.m. PST |
I blew that 10% (or was it 15%?) coupon on a $170 USD purchase, so I had to ask the seller. He got his full money, so it was ebay that ate the $17/$26 discount for me. Financed through increased seller fees, I suppose. |
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