728_header.jpg (23748 bytes)
 Home 
 EB Blog 
 AB Blog 
 Letters 
 Podcasts 
 ABTV 
 Forums 
 EPIS 
 PR Service 
 Classifieds 
 EKG 
 Ratings 
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
EcommerceBytes.com
January 07, 2010




Email This Story to a Friend

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.

You may quote up to 50 words of any article on the condition that you attribute the article to EcommerceBytes.com and either link to the original article or to www.EcommerceBytes.com.
All other use is prohibited.

Sign up for our Email Newsletters

Email This Story to a Friend
Email this story to a friend.


4 of 4


Sponsored Ad