Can I ask how you calculated the $81 for the MPST first payment? I have $48 (set) + $29.1 (EMS). If I were to send this amount directly to the fansite, paypal fees would be around $2.54 which still wouldn't total $81, which makes me think that the $81 doesn't only include the group paypal fee but also the paypal fee from us to you as well (in which case we wouldn't have to check 'pay paypal fees')? Thank you in advance for clarifying for us. ^^;
Thanks for your. I’m happy to explain this to you :) The price difference is basically the Paypal fee!
I don’t know how familiar you are with Paypal, but Paypal charges a fee (a percentage of the total amount of money being sent) when money is being sent internationally. When we pay the fansite, we get charged that international fee because we are in the U.S. and the fansite is in Korea.
Furthermore, in Paypal, there are two different payment methods or options. One of them is called “Send money to family and friends” and the other is “Pay for goods and services,” which are pretty self-explanatory. When you choose to send money using the family & friends option, Paypal charges a much lower fee. When you send money to a seller/vendor (the goods & services option), the fee is much higher. It’s how Paypal makes money. When you buy stuff online and pay for it by Paypal, you are using the goods & services option. You don’t realize Paypal is charging a fee because usually the seller/vendor covers it, and you pay no fee. However, with fansites, they make us, the buyer, pay the Paypal fee. You’ll often see in their photobook notices that they say things like, “Make sure you pay the Paypal fee!!!”
Mary and I at Skailight almost always pay fansites via the goods & services option. On the other hand, most other group orders choose the friends & family option to avoid the higher fee; therefore, they are able to charge less money than us for the same good. If we were to use the friends & family option, we would be able to charge the same price as the other group orders.
So why do we not choose the cheaper option? The key advantage of paying with the goods & services option is that Paypal offers buyer protection. In the case that the vendor (i.e., in this case, the fansite) fails to deliver the goods that we pay for, we can file a claim with Paypal and have Paypal either settle the dispute for us with the vendor/fansite or refund us. It’s an insurance. As you may have heard, fansites are sometimes very untrustworthy on whether they produce and deliver the goods they put on sale. In case that happens, we would like to at least have the option of getting some of our money back from Paypal, because the fansite would never refund us; they just take the money and run. With the friends & family option, there is no buyer protection, so if you pay a fansite via friends & family, sure, you pay less, but you also might be risking a lot.
You might be asking, but how can I tell Skailight is actually using the goods & services option? After we pay the fansite, we are always willing to show the Paypal receipt upon request, proving that we not only paid the fansite, but also that we used the goods & services option and are not pocketing the “extra” money. The receipt shows exactly how much we paid, how much is taken for the Paypal fee, and how much the fansite actually receives after the fee is deducted. I’ve attached an old receipt for one of our past group orders to show you what I mean — this one was for our group order for Spunky Action Baby’s “LOVEHATE” photobook. Notice the ~$30 fee deducted. The fee would only be that high if we used the goods & services option. You’ll notice (below) that the goods & services fee for MPST is going to be around ~$30 too.
I can also show you how we reached the calculation for $81 per MPST set:
10 photobooks in the group order * $48 per photobook = $480 EMS for 10 photobooks (using MPST’s EMS table) = $291 Subtotal = 480 + 291 = $771
Now we need to add the Paypal fee. I’ve attached screenshots that show Paypal calculating how much the fees are for each option so you know where I’m getting the numbers from (I didn’t take a screenshot of the whole screen since it shows my personal information, so I cropped most of the screen out, I hope you understand ;;): Screenshot: 1 / 2 / 3
Total = $771 + $3.86 = $774.86Â
Total per person = $774.86 / 10 people = $77.49
Total = $771 + $31.60 = $802.60Â
Total per person = $802.60 / 10 people = $80.26Â
Thus you see how we get $81. You can also see from the screenshots that, either way, MPST still receives $771 and not a cent more.
Mary and I were actually wondering if we should drop the Paypal fee on this group order since MPST has proven themselves to be trustworthy in the past… but we haven’t really reached a decision yet. I know some of our regular customers definitely do prefer paying the extra Paypal fee just to be safe. One of our past group orders has turned out to be a dud (Eat You Up), and we never got our money back because we weren’t able to file a claim with Paypal for it. As I’ve shown above, the goods & services fee is usually around $30, which divided among 10 people is only an extra $3 per person for buyer protection, which is not terribly expensive — we’ll “lose out” on the extra $3 if we never use the buyer protection, but we’d lose out on $70-80 if we find ourselves cheated by the fansite and have no buyer protection. Thus, Mary and I have always thought it is worth it to err on the side of caution — though we are open to your opinions if you think we shouldn’t worry about Paypal protection anymore!
Very sorry for the long-winded answer. But I hope this helps!