Accepting Paypal as a payment method might increase your selling prices and your profits. This depends on what you are selling. I sell collectibles to collectors. My clients are like junkies. They will buy regardless of the payment options, so not offering Paypal wont generate much difference in the final selling prices.

If you sell items with high competition, accepting Paypal will contruct your auctions more attractive. This also holds true for impulse buys. Plus, you might get paid instantly through Paypal.

Heres a few suggestions for increasing your profits by accepting Paypal:

1. Select accept Paypal in the auction listing process to get the Paypal logo into your auction. You can put in the auction description that you accept Paypal, but unless you utilize the Paypal logo some buyers will miss this Payment choice. Many buyers look specifically for the logo and expect to find it in certain areas of the auction listing.

2. If you only accept bank account transfers, and do not accept credit card payments through paypal be sure to mention this in your auction description and the payment types area. Even after you mention this, you will get credit card payments from some Paypal users. This causes confusion with buyers.

3. One problem that can come up is your shipping schedule. I ship once a week. Some eBay buyers feel that I should drop everything and go to the post office as soon as they send me money through Paypal. This used to cause problems.

Now when a buyer sends me money, I quickly e mail him and tell him when to expect his merchandise . Because I ship on Thursday or Friday, I may tell them their item will be delivered by the next Tuesday, if not earlier. Instead of telling the buyer I will ship the merchandise on Friday, I tell them to expect it on Monday. This changes the buyers focus from when I will ship to when they will get the product.

One last thing before I finish up. I recommend eBay sellers use guarantees. If you take a credit card through Paypal, and later refund the buyers funds , you will be out the Paypal fees if the refund is done more than 30 days after the initial transaction. You absolutely need to require your buyer to return the product quickly.