PayPal Micropayments with Sellfy

By read
10 Oct, 2013

Many of our customers face a problem with micropayments when trying to sell songs, comics or other low cost products. The typical problem is fixed per-transaction costs that can range from $0.25 to $0.45 but usually are $0.30. This fee is applied to every transaction/purchase and when you are selling something for $1 it’s a huge cut in your earnings.

Sellfy Tip
To learn more about selling with PayPal, refer to our guide on how to connect PayPal.

PayPal micropayments

When selling content it’s important to optimize your fees and this is where PayPal micropayments can help you.

Fee for PayPal micropayments are 5% + $.05 and it’s designed for merchants who process low-cost transactions (under $10). PayPal micropayments are opted in Sellfy and we already have a lot of sellers taking advantage of it – mainly for selling songs, photos, magazines and comics.


Micropayments example

In our space you see e-commerce services charging fixed per-transaction fees so let’s take $0.30 as an example. On Sellfy seller pays our service fee (5%)+ PayPal’s (5%+$0.05 if PayPal micropayments are enabled) per transaction so you can reduce the fixed fee to the minimum.

If digital product costs $1.00 and you are selling it on Sellfy and using PayPal as a payment processor, total transactions fees for you will be $0.15 ($0.05 to Sellfy and $0.10 for PayPal) which brings your profit to $0.85. With other e-commerce services where per-transaction fee will be $0.30 costs can grow up to $0.35 per purchase. The difference is huge, for example if seller sells 1000 copies of product.

Sellfy: 0.85$ x 1000= 850$

Others: 0.65$ x 1000= 650$

So it saves you** $200** right there!

Take an example from one of our clients Dean Trippe who shared his experience with us on Twitter. Dean is a comic author who sells with Sellfy using PayPal micropayments.

Insider info: Something Terrible downloads: 795. Each download is 99 cents, 5 of which go to @Sellfy, & 11 to @PayPal. @starr226 model idea. — TRIPPE OR TREAT (@deantrippe) October 1, 2013

This is what he wrote to us later:

*It literally took five minutes to upload my comic and add the “buy now” button to my site. The downloads notifications started coming in as soon as I shared the link with my fans, and they haven’t stopped yet. *

*The Sellfy team even messaged me on Twitter to wish me luck with the launch and emailed me about a broken URL I’d typed wrong into my product description. *

*That is not the kind of service you find just anywhere. “Something Terrible” is a very personal story, one I was passionate about sharing with my fans, and Sellfy made it possible. *

Thanks so much, you guys. Dean Trippe

Learn more about PayPal micropayments here and there is no additional configuration needed on Sellfy.