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EcommerceBytes-NewsFlash, Number 2196 - January 07, 2010 - ISSN 1539-5065    4 of 4

Study Shows PayPal and Bill Me Later Help Drive Sales for Large Merchants

By Ina Steiner
January 07, 2010

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PayPal commissioned Forrester Consulting to do a study to measure the results of using PayPal and Bill Me Later on large online retail websites. Forrester Consulting interviewed eight merchants found that merchants generated new sales 1-2 weeks after integrating PayPal and Bill Me Later on their sites.

"The Total Economic Impact of PayPal and Bill Me Later" was published in December, and Senior Director of PayPal Merchant Services Jim Hunt said the results reaffirm the company's belief that adding PayPal and Bill Me Later to merchant sites helps drive sales.

Here are some findings of the Forrester research:

  • When PayPal was added as a payment option on a merchant site, PayPalís share of checkout (SoC) ranged from 6% to 12%. Merchants believed that approximately 10% to 30% of PayPal sales were new sales.

  • When Bill Me Later was added to a merchant site, Bill Me Later SoC ranged from 3% to 6% of total sales. Merchants believed that approximately one third of Bill Me Later sales were new sales.

  • Merchants saw average order values increase by 20% to 40% with Bill Me Later.

  • Marketing activities by PayPal and Bill Me Later were considered to be the greatest driver of new customers and incremental sales for the merchants.

  • PayPal and Bill Me Later customers were likely to make repeat purchases.
About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

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