PayPal for eCommerce

Paypal is a popular online payment service tool for sending and receiving money. PayPal currently has over 100 million active accounts originating from 190 countries. PayPal is available for use in 202 countries worldwide and supports 25 currencies. Features of PayPal include sending or receiving payments, purchasing or selling goods and services using PayPal funds, make or accept cash donations, and exchange cash. PayPal is an American company operating a worldwide online payments system, that serves as an alternative to traditional payment methods such as checks and money orders.


Getting Started with PayPal

In order to receive funds, users must create 1 of 3 types of PayPal accounts depending on what they will use PayPal’s services for- Personal, Premier or Business account:

  1. Personal Account– This account is free. This type of account is recommended for individuals who want to shop and pay online or share expenses online.
  2. Premier Account– This account is geared to casual online sellers. This account is recommended for sellers who want to get paid online as well as make online purchases.
  3. Business Account– This account is recommended for eCommerce merchants who actively sell online. A benefit of this type of account is that 200 employees can be granted access to the account and can respond to customer inquiries.

Ecommerce With PayPal

One of the most common uses of PayPal’s payment system is conducting eCommerce with PayPal. eCommerce Sellers from all across the world are using Paypal for their eCommerce site to receive payments from their customers on various online marketplaces. Paypal ecommerce integration has changed the way sellers operate. For some ecommerce platforms, such as eBay, Paypal is the most commonly accepted payment method by its sellers. As a seller, there are fees associated with collecting PayPal payments. Paypal ecommerce fees are applied when you sell goods or services and the buyer pays using his/her PayPal account. The amount of the fee is dependant on where you are receiving the funds from. If the funds are coming from a Paypal account in Canada, you pay a fee of 2.9% of the transaction amount plus $.30 CAD. If the funds are coming from a PayPal account in the US, you pay a fee of 3.7% of the transaction amount plus $.30 USD. If funds are coming from outside Canada and the US, you pay a fee of 3.9% of the transaction amount plus a fixed fee based on the currency used.

Estimating expenses with Algopix

Estimating expenses and margins can be a long, tedious process for eCommerce sellers, with a lot of room for error. That’s why sellers from across the world utilize Algopix, an automated product market research tool that calculates expenses and profit margins for you, in a matter of moments. Algopix will analyze expenses including shipping costs, marketplace fees, taxes and PayPal fees. As mentioned earlier, PayPal is the most commonly accepted payment method for eBay sellers. Prior to listing items on their eBay store, many sellers utilize an eBay paypal calculator to better understand fees associated with selling their products, and what their expected profits can be. Having a solid understanding of your margins before listing products, will limit risk and increase revenue.


PayPal is one of the oldest, most reputable payment services company available, and is safe to use. Whenever you link financial accounts to an online service, security should always be your greatest concern. Due to the proven track record that PayPal has, it makes sense as to why businesses of all kinds use PayPal as their primary accepted payment methods.

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