Home – New Forums Selling online Paypal and Eway. Do I really need both?

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  • #994110
    El Arish Tropical Exotics
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    Hi, I’ve read some of the threads regarding Eway and know that it is highly regarded. ATM I offer Paypal, direct deposit and payment by check as options. Recently I received a call from an Eway rep that told me sales jump 30% for businesses that offer Paypal and Eway together. I’m wondering if anyone has had the experience when adding Eway to their payment methods? Anything else I should think about?
    Currently I’m getting a discount on merchant fees for volume with Paypal which I could lose if I water down my volume with a payment method that has a higher fee. I don’t want to add Eway unless I get solid results.

    Thanks!! Ann

    #1195152
    LucasArthur
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    Hi Ann

    This is an interesting post, little outside the normal approach to people querying paypal and merchant facilities (am saying merchant instead of eWay as i think similar without being brand advocate) and how it can benefit an eComm provider such as yourself.

    As you mention, eWay is highly regarded in the forums and also well represented in the forums with the likes of Maclean and his generosity in the forums on both merchant facilities and general eCommerce advice… So this is a kudos, although coming back to your main query which i think is “will adding a mainstream merchant facility bring me extra business and volumes?”

    Personally, i am not sure that increased business will reside solely in adding a mainstream merchant facility to your site as there are so many other factors such as traffic, existing product offerings and types of clients your service. What i can say though, is that consumers are particularly impressed if you offer a mainstream merchant facility as they see it as being professional and that you are a ‘bigger’ player in their mind set if you have it and having paypal offers another level of trust for those brainwashed by eBay/Paypal and the security of dealing with them (not going into that in this post)…

    Sometimes you may not see the direct benefit of it, although the mindset of the client is important, will they perceive you as more professional? and by simply offering more options at checkout, this can be their conclusion.. This may lead to returned patronage, if like your product, and so forth.

    Re your concern about bulk discounts on paypal, this should not bother you as they will compete with the aggregate totals you provide from both your merchant and paypal turnover, not just your paypal turnover – normally.

    Go visit your site, sit back and do not look at it as an owner and think about it as someone that may or may not be familiar with paypal… Navigate the payment screens, check how easy it is to instigate a payment by credit card through paypal and the likes… are you staying on YOUR website to do the payment, or going elsewhere, what is the merchant offering? is it onsite payment integration etc?

    The scenario is a bit like an SSL logo on your website, it may not bring measurable results although people may feel more comfortable seeing this service available.

    Good luck, have a chat again to eWay if you are not sold and get them to explain the advantages.. They tend not to ‘oversell’ and you should feel comfortable in asking..

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1195153
    eWAY
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    Hi there Ann,

    This is Maclean from eWAY, let me know if there’s anything in particular I can help out with.

    There’s a few different things to look at besides just the merchant fee (and if you’re doing volumes that get you preferential fees through PayPal make sure you mention that to your eWAY success manager as they may be able to suggest alternate pricing to what is on our website).

    As you probably know, the easiest way to increase the profitability of your business is to increase the conversion rate of your existing traffic. You’ve already got them there (either organically or by paying for an ad) so any lost customer is wasted money.

    In my opinion (built from 10 years @ eWAY and even more as an online business owner) the easiest way to increase your conversions is to remove friction and pains from how the customer buys from you. Removing a redirect to the PayPal website and letting the customer choose how they pay you are a couple of easy ways. You can even set your store to save the customers details with us so they can be automatically billed next time they come back without having to go and find their wallet.

    We’ve got a bunch of other free products for increasing your sales as well which I’m sure your success manager will be happy to go through. As an example, you can include retargeting ads in your eWAY receipts (which look beautiful by the way) so that a customer receives an exclusive offer to come back and spend even more cash with you.

    Let me know if you have any more questions.

    Oh, our plans have no setup, yearly, monthly or any other types of ongoing fees so if you just want to trial it for a few months to see if your conversions go up that’s always an option. I can see that you’re using Neto so turning eWAY on is free and super easy.

    Either way, good luck :)

    Maclean

    #1195154
    bb1
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    El Arish Tropical Exotics, post: 229599, member: 6734 wrote:
    Recently I received a call from an Eway rep that told me sales jump 30% for businesses that offer Paypal and Eway together.

    I would be making that rep show you hard and fast figures to prove that claim.

    Really, would someone go elsewhere because you only offer paypal. Or conversely just Eway. To answer my own question, I am sure some would, but 30%, wow.

    #1195155
    El Arish Tropical Exotics
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    Thanks for everyone’s input. I’m still mulling this over and exploring options.

    I’m in a niche industry and do a fair bit of repeat business. Been there, done that on spending money on “indirect benefits” and find it really doesn’t benefit my particular business. I prefer to let the quality of my product speak for itself rather than worrying about bells and whistles that ultimately the customer pays for. Even if I saw a 5% increase in business I’d be happy but to pay a larger percentage of fees and expanding my accounting for no direct results doesn’t appeal to me.

    Regards, Ann

    #1195156
    Jason G.
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    How does the rep justify the 30% increase. I have been around for a long time in the Internet Marketing game and have seen no data to back that up. Most of my clients would kill for a 30% jump in business for such a small thing. It sends warning bells up instantly. If you are looking at accepting credit cards in a simple manner, you may speak to someone about adding stripe to your site. I prefer it myself, the fees are simple and the security is better. If you want to know more or have any other questions feel free to ask me.

    EDIT:Security vs Paypal not Eway.

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    #1195157
    eWAY
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    Jason_G, post: 230017, member: 77691 wrote:
    How does the rep justify the 30% increase. I have been around for a long time in the Internet Marketing game and have seen no data to back that up. .

    Hi all,

    Just wanted to jump back in here with some more information that I’ve got around this topic.

    I’ve spoken with our sales manager to double check what the literature our agents receive on this is.

    We definitely don’t guarantee that adding eWAY will raise your sales by 30% and to Ann from [USER=6734]@El Arish Tropical Exotics[/USER] I’m sorry if this was misunderstood. However, there are some statistics that we’ve gathered from our large (24,000+) merchant customer base which we display on our dedicated page about using eWAY & PayPal – https://www.eway.com.au/eway-paypal In some industries (such as those aimed at higher income professionals) we’ve had customers see a 400%+ rise in sales by adding onsite card payments. As an example, imagine if someone like David Jones or Mont Blanc only accepted PayPal in their store – it’s highly likely that their target market just wouldn’t accept that as a payment option.

    This is further backed up by eCorner’s public eCommerce statistics (the last ones posted on Flying Solo are here – http://www.ecorner.com.au/eCommerce-Statistics/October-2014-eCommerce-Online-Retail-Statistics#.Vt9Svfl95hE) Their results are slightly different to ours as they also include Invoice/Other payment methods, which our data does not include.

    I want to reiterate as well that we don’t suggest replacing PayPal with eWAY (or any other onsite payment gateway), we know that conversions increase by offering more payment options, but we also know that if a visitor is presented with the option for eWAY onsite card payments vs an offsite PayPal payment that on average, two thirds of them will choose to pay by card.

    Personally, I’m not the best person to discuss the statistics, I’ve got more of a technical and implementation background here at eWAY but if you’d like to discuss the stats we’d welcome you to call in and speak with a success team member.

    Of course I’m still happy to answer any questions that I can on the topic of conversions etc.

    Maclean

    #1195158
    Jason G.
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    Good to see eWay clearing up the 30%

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    #1195159
    LucasArthur
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    Jason_G, post: 230035, member: 77691 wrote:
    Good to see eWay clearing up the 30%

    Mate, Maclean is top notch.. It refreshing to have some thorough and forthright replies to topics such as how Maclean contributes… So i second this :)

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1195160
    El Arish Tropical Exotics
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    Thanks Maclean, for your input. My discussion with your sales rep was about adding eway rather than replacing paypal and results that I could achieve by having both. Perhaps he was a bit over zealous in his enthusiasm. I did think 30% was over the top. Although I do have to say the customers on your website’s testimonial page seem to have had pretty amazing results. That’s why I wanted to ask here what members experiences had been.

    I am going to add another credit card option Paypal has offered me 2% on all my transactions which is a bit of a bonus for me as I was at 2.2%.

    Ann

    #1195161
    LucasArthur
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    El Arish Tropical Exotics, post: 230046, member: 6734 wrote:
    Thanks Maclean, for your input. My discussion with your sales rep was about adding eway rather than replacing paypal and results that I could achieve by having both. I pretty much chalked it up to an overzealous pitch when I heard it but thought I would see if anyone here could share their results.

    I am going to add another credit card option. Paypal has offered me 2% on all my transactions which is a bit of a bonus for me as I was at 2.2% but I do thank you for clearing that up.
    Ann
    Hi Ann

    Not sure if this message has been clear here, although the benefit of adding paypal AND a merchant gateway is providing your buyers with choice. This way if a buyer is particularly fond of paypal (as some are due to eBay exposure and marketing) or prefer a direct credit card gateway without the paypal middleman you are sure to capture them instead of potentially losing one or the other by not having the dual option :)

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1195163
    El Arish Tropical Exotics
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    HarryLuke Logistics, post: 230047, member: 34537 wrote:
    Hi Ann

    Not sure if this message has been clear here, although the benefit of adding paypal AND a merchant gateway is providing your buyers with choice. This way if a buyer is particularly fond of paypal (as some are due to eBay exposure and marketing) or prefer a direct credit card gateway without the paypal middleman you are sure to capture them instead of potentially losing one or the other by not having the dual option :)

    Cheers
    Jason

    Thanks Jason, I do understand that but I can’t afford to increase my costs for a tiny percentage of people who aren’t happy with the four payment options I offer. It would actually work against me if I saw 25% of my customers using Eway over Paypal because I would be paying a higher percentage. That’s why I say I’d need to see an increase in customers rather than a shift in the type of payment they use. I’m in a niche industry, I’m a small business and realized a long time ago I can’t make everyone a happy customer so prefer to focus on customers I can make happy.
    Ann

    #1195164
    LucasArthur
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    chaase, post: 230144, member: 47813 wrote:
    The issue for small businesses offering multiple payment options is the total transaction is split between two providers which will potentially increase overall transaction fees.

    Apologies, although what does this mean? Is this referring to offering paypal and a bank direct merchant service? Again, my apologies if it is clear to others..

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1195166
    El Arish Tropical Exotics
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    That’s it in a nutshell :)
    Paypal has offered me a payment gateway where transactions will be done on my site via credit card. It does the same job but is a different “brand” and will keep my fees down.

    And while I appreciate that Eway is flexible in fees and does bring fees down with more volume I’m the type of person that likes to see it upfront. I imagine there are some people that like the idea they’ve negotiated a better deal.

    Ann

    #1195167
    LucasArthur
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    Awesome to hear you guys have established what works best for you, sometimes its also worth considering what the customer experience is as well.. Not sure if you have also considered it from that angle, its like the old adage of accepting or not accepting AMEX.. some see the merit in paying a slightly higher % to tap into a higher spending client, others can not see the advantage.. Sometimes its just a personal and comfort zone decision.

    Not casting any dispersions here what so ever, although there are more was than one to skin a cat – oh my, i aint been able to use that saying in years ;)

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
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