You can probably make a change to your PayPal Account, which could boost your profits up to 35% or more.
The artist/record label
The traditional record company model of music selling is in decline. Digital downloads are taking over. The new model allows bands direct interaction with their fans. Digital album and song download sales can be done directly by bands to fans. This is a far better model than the traditional’recording agreement’ model. In fact, under the new model the artist plays the role of record labels, and is able to receive all the money that was previously retained by the middleman.
Once an artist decides to market to fans directly via online sales, they must select a way to handle the financial side of the transaction. This is the most common option for artists.
PayPal makes it easy to trust and is ubiquitous
PayPal is the largest provider of internet transaction processing. PayPal has been around for over a decade. It is a trusted brand that makes it easy to deal with any suspicious transactions. It lets customers pay how they want, whether it’s through their PayPal account balances, credit cards, debit transactions or via debit cards. It has over 150 million accounts and can transact in dozens different currencies. This makes it a well-recognized company.
PayPal acts as a payment processor. The money is paid from the account chosen by the customer to your PayPal account. PayPal receives a small commission for every transaction. This amount is deducted from the seller’s receipts.
Two payment rates
Not many people know that PayPal charges sellers two different fees (or Merchant Processing rates). This fee schedule details exactly how much each sale will cost PayPal to process the transaction. Depending on how large your average transaction is, you may find it advantageous to follow one or the other schedule.
The seller pays a flat fee of $0.30 (in US dollars) plus 2.9% on the total transaction. PayPal charges $0.33 for each transaction, which is one third of the total cost to sell a song at $0.99.
The Micropayments Fee structure is available. This structure charges the seller $0.05 plus 5.5% as the Micropayments Fee. PayPal charges $0.10 for a transaction fee, which is less than one third of the Standard Fee.
As you can see, the Micropayments Fee structure could result in a dramatic increase in profitability. Assume that a single $0.99 single download is an average transaction for your company. You would make $0.89 per transaction if you used Micropayments Fee Schedule, as opposed $0.66 if you used the Standard Fee Schedule. Or, to put it another way, you will see a 35% increase in your profits!
Is it right?
It is easy to see why the Micropayments Fee offers a better deal for small transactions. Small transactions are more affordable because of the flat rate Fakaza. With a higher percentage it is less advantageous as the average transaction cost rises.
Is there a crossover point? The average is $12.00. You should use the Micropayment Fee if you anticipate that your average transaction will be lower than $12.00. This would be the case for most digital downloads, including singles and album. It is better to use the Standard Fee if you anticipate your average transaction to exceed $12.00. However, are you expecting your average customer will buy all of your albums at once or do they?
PayPal’s Micropayments Fee option may be a lesser-known feature. PayPal doesn’t go to great lengths advertising its availability. Many people don’t know about its existence. It is possible to change your PayPal account to include the Micropayments Fee schedule.
PayPal allows one fee schedule for each account. One account cannot have both the Standard Fee schedule (for some transactions) and the Micropayments Fee Schedule (for others). This is easily fixed by using two accounts — one to each fee schedule.
Second, PayPal permits only business accounts to utilize the Micropayments Fee schedule. Both Premier and Personal accounts are not eligible. Opening a PayPal business account is simple.
Many musicians now sell digital downloads directly to fans via the internet. This allows the musician retain the lion’s share of sales previously retained by record companies. These musicians can see a dramatic increase in their profitability with the PayPal Micropayments Fee schedule. It would be a great idea to learn how to use the PayPal Micropayments Fee schedule and begin paying PayPal less that a third of what it costs today.
Most successful e-commerce sellers have implemented product review and rating on their product details pages. This feature has the main advantage that it gives customers and visitors assurance that this product is more than a generic e-commerce product. It is a topic that people are talking about (both positively and negatively) and it is listed here.
If your product information page isn’t up to the mark, people will leave your site and go to your competitors. The most important page on your site is the product details page. This is where customers will decide whether they want to add the product to their cart or not. Customers should feel confident that the products they are purchasing are a good deal and offer value for money.
The ability to allow customers to share their opinions and experiences about the product is one of the most powerful features on your product detail page. A simple comment from a satisfied customer can reassure many other customers about buying the product.
Here are five tips to make your product page more efficient and encourage customers and visitors alike to leave reviews.
Tips 1 – Product Details page Design:
People love to see product details pages that are attractively designed and well presented. The product detail page should include product descriptions, images, prices, and attributes selection options. Customers will find the information they need easily if it is presented in a clean and organized manner. People will write about your product details page if it is attractive and well-designed. Image zooming, image videos and multiple images can help customers get a better understanding of the product. A visitor who sees a product detail page that is eye-catching will be more inclined to want to add words.
Tips 2 – Don’t make it complicated:
Keep the Review & Rating section simple. Making it complicated would prevent customers and visitors from leaving reviews. You can offer the rating option along with the review option. A visual rating of 5 stars is available that can be rated by clicking the mouse. The negative rating options would make it clear to visitors that they can rate the product as they wish. The Review can be made optional by removing the email field. People don’t like their emails being visible to the public. You can choose to hide or show the email addresses in the reviews. CAPTCHA is a key issue to be aware of. Spammers can easily break easy CAPTCHA, while hard CAPTCHA is irritating to the real reviewers. You should choose one that is both difficult for spammers to crack and easy for humans to read.
Tips 3 – Modify the Reviews and Rating:
You should be able to manage the rating and review left by customers or visitors on your e-commerce platform. You should be able publish or unpublish reviews (or manipulate them if you wish), control visibility and control the number of reviews per webpage, reply to reviewers, and use other standard review moderation features. You should moderate reviews regularly if you want to value the opinions of your customers about your products. Customers feel disappointed when their reviews are not published on your website. You can send them thank-you emails and ask for their visit. In reply, you should write something that will impress not only the reviewers but all visitors.
Tips 4 – Don’t forget the negative reviews:
Your product detail page should be filled with glowing and positive reviews. Customers who have negative reviews about the product are your best chance to explain the reasons and inform others. You can confront negative reviews with positive answers, and then place them alongside the other reviews.
Tips 5 – Reviewing Competition
How about giving away a coupon, a free gift or a discount to the top-rated reviewers? This would encourage customers and visitors to explore your products and write about them. A $5 coupon code, discount of 5% or gift wrapping free would encourage more customers and visitors to write about your products.