PayPal…without PayPal!: For eBay Sellers And Freelancers

If you’re an eBay seller, or a freelancer, the solutions listed on our previous topic are probably useless for you. But don’t worry, there are still somethings you can do.

Let’s see what they are:

1. For Freelancers:

2CheckOut supports selling services by default: so you can use 2CO as a billing solution. And because it’s significantly harder for a scammer to deal with an actual company that has a strong legal team, the risk of getting scammed through complaints (PayPal usually, if not always, sides with the buyer) or charge backs is reduced considerably.

Using 2CO, you can easily accept PayPal - so you don’t lose any customers if you decide to only accept MoneyBookers, for example, as many people only pay through PayPal.

2. For Freelancers And eBay Sellers Alike:

There is a service out there called Xoom (http://www.xoom.com).

This is how Xoom works:

1. The user (in this case, your client) selects the country he wants to send money to (there are many to choose from).
2. He chooses how the recipient (you) is going to receive the money. There are three methods: home delivery, cash pickup, or direct deposit.
3. Then, he chooses a payment method: he can use a credit card, a bank account (in the US only) or PayPal.
4. He notifies you that the money is on the way.

Simple. Let me explain further…

If you’re a freelancer, and you are hired to do a job, you would usually do it, send your client half the order, watermarked images, or whatever forces him to pay for the full thing, now that he knows you’ve done it, and then he pays you through PayPal.

But, maybe your client is a scammer, and files a complaint against you with PayPal (which he will most certainly win), or makes a charge back: either way, you loose your money.

Now, with Xoom, things are different.

Instead of requiring a PayPal payment, you should require a Xoom payment. If your client insists on paying through PayPal, no problem, since Xoom accepts PayPal.

He pays through PayPal, you get your money (Xoom is pretty fast and secure), you deliver the product. And because you get your money physically, there’s no risk: no one can take away your money!

Now, I recommend you tell your client to select “cash pickup” as a delivery method, since your money will be available within minutes (max. 24 hours) after the transfer has been initiated!

Tip: make sure your customer forwards you the e-mail containing the invoice and the tracking number (Xoom gives him the option to do so after the payment is done), so you know the money has been transferred, and so that you can track the transaction as well. The transaction details can’t be modified once the transaction has initiated, but it might get canceled before Xoom confirms the transfer has been made, so watch out.

Xoom is a very strong option, specially because they don’t refund the money unless the make something wrong, so there is no way your customer will be able to get his money back after it falls on your hand, and if he attempts a charge back, he will be the one who gets into trouble :).

Another Tip: Xoom is not free, there are fees involved. It varies from country to country, but the larger the transfer is, the larger the fees are.You can choose to cover for the fees yourself, or you can tell your client to use a secret coupon that will waive the transfer fees Here’s the coupon:

genfrexfer

Make sure your customer uses it, so neither of you have to pay the fees.

What if you’re an eBay seller?

Xoom has got you covered! When making a transfer, your client will find a text box specifically made for eBay purchases, where he/she will have to enter the eBay auction number. Simple!

So, to summarize, this is what you need to do:

1. Tell your client that if he wants to pay with PayPal, that it must be done through Xoom.
2. When it’s time to pay, make sure your client uses the coupon mentioned above to waive the transfer fees. If your client is paying for an eBay item, make sure he/she enters the eBay auction number/user id in the form Xoom provides specially for this purpose.
3. After the payment has been made, make sure your client forwards you the invoice by entering your e-mail address in the form Xoom will provide.
4. Track the payment using the tracking code.
5. When the transfer has been completed, go and get your money. I recommend cash pickup, as it is the fastest method (from a couple of minutes to 24h).
6. Send/ship the product/service!

Pretty neat and simple, right?

Some people may think that their eBay conversion rates will drop because of buyers refusing to use Xoom, but let me tell you something.

If you’re a good seller, and have a good reputation, that buyer shouldn’t have a problem with using Xoom, and if your customer is truly legitimate (not a scammer) he will most likely agree to use Xoom.

This might be harsh for some, but you have to do what you have to do if you want to keep your money safe!

Bonus Tip: Xoom has a very generous affiliate program, which is handled through Commission Junction.They pay you $6 for every natural sign up you get them. That means that each of your new clients can be your referrals! Just make sure they sign up under your affiliate link. If you’re busy enough to have 100 clients a month (a low amount for an active eBay seller!), you could be pocketing an extra $600 a month!

To join the affiliate program, visit the Xoom website, and look for the affiliates section at the bottom of the site.