About Layaways

[sylviebee]

Is there a way to do eBay layaways within the system?

It's easy for me  to take a downpayment and then issue PP payment requests when the buyer is ready but does eBay have a method for this?

I'd really like to agree to this buyer's request.

[pjcdn2005]

No, there is no way within the eBay system to do a layaway.  

I don’t know if the rule still exists but at one time, buyers were not protected by PayPal if the full payment wasn’t made at one time so instalments have never been encouraged.

[femmefan1946]

Layaways are great for sellers and terrible for buyers.

Back in the 70s, before credit cards were common, some friends planned to  furnish their first home on layaway, paying so much each week with the idea that they would actually take possession when the full amount, plus interest, was paid.

Then the company went bankrupt, and they lost all the money they had handed over. I think they got a couple of endtables and a few lamps.

The modern equivalent is a credit card.

The buyer attaches a card to his Paypal account.

He pays the seller in full through PP/card.

The seller ships.

The buyer pays off the card at his leisure, with interest.

Layaways are not necessary in the 21st century.

A customer who is not eligible for a credit card, is not likely to be a good risk for a seller.

Another thought.

If the customer pays anything, eBay would expect you to ship, no?

[sylviebee]

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@femmefan1946 wrote:

Another thought.

If the customer pays anything, eBay would expect you to ship, no?

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Yes, totally true.  But the seller still has no risk because if a buyer files a case the seller would simply refund and cancel the transaction.  Also, the buyer has a limited amount of time to file that case.

I have a non-eBay item on layaway now and she sent her first payment about 6 months ago.  I've looked at if from all angles and I hold all the cards.

Not long ago I had a buyer from China purchase an item. send a down payment, and put it on layaway.   She waited well over a year to pay.  I could have so easily just ignored her and been done with it (I didn't).  

However, you nailed  it:  an on-line buyer who purchases on layaway is taking a lot of risk.

[femmefan1946]

Actually, if she hasn't paid in six months, I doubt she has any legal way to make you complete the sale.

Her eBay, Paypal and possible credit card protections have timed out.

Good thing she's dealing with an ethical seller.

This is why I say, layaways are good for sellers and bad for buyers.

Meanwhile you are storing an item rather than actually turning it into money.

The six month gap would tell me that she can't afford it and will never pay.

Meanwhile you have paid fees on the full value of the sale and of shipping, plus PP fees for the partial payment.

And you will pay 30c plus 2.9-3.9% PP fees on any further payments she makes.

Are you sure this is still a profitable transaction?

[sylviebee]

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@femmefan1946 wrote:

Actually, if she hasn't paid in six months, I doubt she has any legal way to make you complete the sale.

Her eBay, Paypal and possible credit card protections have timed out.

Good thing she's dealing with an ethical seller.

This is why I say, layaways are good for sellers and bad for buyers.

Meanwhile you are storing an item rather than actually turning it into money.

The six month gap would tell me that she can't afford it and will never pay.

Meanwhile you have paid fees on the full value of the sale and of shipping, plus PP fees for the partial payment.

And you will pay 30c plus 2.9-3.9% PP fees on any further payments she makes.

Are you sure this is still a profitable transaction?

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Yes, exactly, the buyer's protections have all timed out.

I agree, these buyers can't actually afford these items but I have a lot of items that are gold to collectors and they can't resist so I work with them.

I send PP invoices so there are no seller fees to pay and most of these items are not eBay  items so I'm covered on the fee thingy.

You're right: there are PP fees but these are high priced items so  it really doesn't matter when considering the big picture.

I just kinda want to cater to these avid collectors because that's my market so I indulge to some degree.  🙂  

In other words:  these buyers are important to me because their enthusiasm for what I sell matters on a level which goes beyond the profit margin.