|Thu June 14 2012 23:19:18|
Should PayPal Encourage Delayed Payments on eBay Purchases?
By: Ina Steiner
There's an interesting discussion going on in the eBay boards about PayPal's Pay on Delivery service that lets eBay shoppers buy an item, but not have to pay until 14 days later. The original poster explains, "I just purchased some organic seeds on eBay and was offered a new payment option in Paypal - Pay After Delivery!" Despite PayPal testing its Pay on Delivery service for some time, many online sellers are unfamiliar with the program.
As PayPal explains to shoppers on this page, "Pay After Delivery gives you 14 days for your item to be delivered before you pay for your purchase. There's no cost to you - because the money is deducted from your bank account, there's no credit check and no credit card fees."
Sellers are very concerned about the program because they feel the buyers may not be committed to the purchase and it will increase the likelihood of them returning the item to the seller.
There also seems to be some skepticism that eBay would use its payment-holds policy in conjunction with Pay on Delivery - meaning the seller wouldn't get paid until 2 weeks after the transaction - despite eBay's explanation that it pays the seller itself at the time of purchase.
Someone included a screenshot of the "funding source" screen they encountered. It also includes something called PayPal Smart Connect, with which I'm unfamiliar - it says "Shop Now and Pay Later."
What do you think of eBay offering buyers deferred payment options? Will it increase sales, or would the potential for an increase in returns outweigh the advantages?