Saturday, April 08, 2006

PayPal Store

My new PayPal store is ready, it will be online in the first days of this week. This article inspired me and after several weeks of php development it is now finally finished.


I am now able to have complete control over the purchase process (using PayPal IPN) and collect a lot of useful information from it. I have also tried to reply to the question "Is it worth the time and effort involved? " well, yes, absolutely.

For example, this is a comparison between the three major merchants (that SQLabs in different time of its history have used) for a $25 product that sells 40 copies in a month: ($1000/month, $12000/year)

FeePer-sale incomePer-sale feeMontly feeMontly profit
Kagi2.5% + $1$23.375$1.625$65$935
eSellerate10%$22.5$2.5$100$900
PayPal2.9% + $0.30$23.975$1.025$41$959


Even more interesting, the same comparison for a $50 product that sells 40 copies in a month: ($2000/month, $24000/year)

FeePer-sale incomePer-sale feeMontly feeMontly profit
Kagi2.5% + $2$46.75$3.25$130$1870
eSellerate15%$42.5$7.5$300$1700
PayPal2.9% + $0.30$48.25$1.75$70$1930


I am not an US resident, so for example I cannot use more professional solutions like authorize.net or something similar, but I really think that PayPal is now the best option for any shareware developer.

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