Which Payment Provider to use?

[MarkSS]

Good Morning Folks.
I am setting up as some of you know a online store to trade in the UK for now. I am looking at the most suitable payment gateway providers to use. PayPal stands out but their fees are high so wondered if any of you use other payment processors.

 

[fisicx]

A lot depends on what you are selling and to whom. If this is for your fashion store you may want to offer a range of payment methods. I like PayPal as a customer but for higher priced products I prefer to use my credit card.

Until the site is launched and you start getting customers you can never be certain which one they prefer.

 

[JEREMY HAWKE]

Worldpay

 

[fisicx]

Worldpay

I really don’t like worldpay (as a customer)

 

[japancool]

Stripe.

 

[MarkSS]

Thanks everyone PayPal and stripe seem to be used a lot. Regarding the fashion store after further researching of suppliers snd advice it is a difficult sector due to partly sizes being vastly different to UK size snd returns refunds being high. There’s always that risk with other products. So looking at the gifts market with 3 good uk suppliers. Thanks again guys

 

[fisicx]

Gifts are just a difficult to market as fashion. There are gazillions of dropshipping sites, wholesalers and retailers.

If you want to sell gifts, specialise. Be the go to place for copper trinkets or custom wall hangings or whatever. And be the supplier yourself. Personal engagement with your customers can get you a whole load of referrals.

 

[MarkSS]

Gifts are just a difficult to market as fashion. There are gazillions of dropshipping sites, wholesalers and retailers.

If you want to sell gifts, specialise. Be the go to place for copper trinkets or custom wall hangings or whatever. And be the supplier yourself. Personal engagement with your customers can get you a whole load of referrals.

Thanks yes good points and ideas. Being a supplier definately gives that edge and personal touch. That’s something to look in to.

 

[fisicx]

Thanks yes good points and ideas. Being a supplier definately gives that edge and personal touch. That’s something to look in to.

Indeed, sourcing the right gifts can make all the difference. I worked with someone who would spend hours finding exactly the right product. They would post on IG to build up anticipation then tell everyone when the item arrived in the warehouse. The website would go bananas for a couple of days because everyone wanted the thing. It's all about marketing.

 

[lesliedocherty]

We have used Sagepay (Protx) for 12 years, used Worldpay previously.
Sagepay are pretty rock solid now, had issues a few year sago, but their fraud detection is superb and a real-life save, Do Not use Klarna

 

[MarkSS]

We have used Sagepay (Protx) for 12 years, used Worldpay previously.
Sagepay are pretty rock solid now, had issues a few year sago, but their fraud detection is superb and a real-life save, Do Not use Klarna

Thanks will look at them

 

[MarkSS]

Indeed, sourcing the right gifts can make all the difference. I worked with someone who would spend hours finding exactly the right product. They would post on IG to build up anticipation then tell everyone when the item arrived in the warehouse. The website would go bananas for a couple of days because everyone wanted the thing. It's all about marketing.

What’s IG? Sounds intriguing

 

[fisicx]

Instagram. But it only works if you tell the story. If you plan to dropship it’s not worth the effort.

 

[Glen Wheeler]

Stripe is probably always the best option both as a payment option and from the Financial perspective. Give you every single payment option out of the box including Google Pay and Apple Pay. It also has an incredible API and excellent documentation for developers. Something you should always look for in a good provider/service.

 

[MarkSS]

Stripe is probably always the best option both as a payment option and from the Financial perspective. Give you every single payment option out of the box including Google Pay and Apple Pay. It also has an incredible API and excellent documentation for developers. Something you should always look for in a good provider/service.

Hi Glen. I did wonder about this and their rates are good too. I will seriously look at this then thanks

 

[fisicx]

Offer people a range of payment methods. You then analyse and drop the least popular ones after a year. Dependng on your demographic you might find many people wary of using stripe as it's not that well known.

 

[MarkSS]

Offer people a range of payment methods. You then analyse and drop the least popular ones after a year. Dependng on your demographic you might find many people wary of using stripe as it's not that well known.

But that gets confusing from an accounting aspect.

 

[fisicx]

But that gets confusing from an accounting aspect.

Are you building the site for your accountant or you customers?

 

[Mr D]

Yes, multiple options so people use what they feel comfortable with.

Factor costs into your pricing.

Gifts is a fun market, incredibly huge and lots of competition. And suppliers can also vet you.
Some will ask where you are selling, some may require you be a certain size. At least a couple will decide based on where you are based.
And a number will not sell to you if you sell on the internet.

Gifts also has returns. Items will be the wrong colour, be damaged in transit, will break after customers open box. If you want something with no returns then go for hygiene items. Knickers, nose studs etc.

 

[Mr D]

But that gets confusing from an accounting aspect.

That is a minor problem. Offering your customers what is best for them makes a difference to sales, your admin problems do not impact sales. And it really is a minor problem.
Wait till you go international and deal with multiple sites, multiple currencies.

 

[MarkSS]

Are you building the site for your accountant or you customers?

I don’t have an accountant but I was advised that it is easier from an accounting aspect with less payment gateways and to use one bank account for your business. You have to think in practical terms as well as from customers angle too

 

[MarkSS]

Yes, multiple options so people use what they feel comfortable with.

Factor costs into your pricing.

Gifts is a fun market, incredibly huge and lots of competition. And suppliers can also vet you.
Some will ask where you are selling, some may require you be a certain size. At least a couple will decide based on where you are based.
And a number will not sell to you if you sell on the internet.

Gifts also has returns. Items will be the wrong colour, be damaged in transit, will break after customers open box. If you want something with no returns then go for hygiene items. Knickers, nose studs etc.

Good points whatever niche has it pros and cons of course. Personal hygiene is a safe one but limits your offer. I do wonder if it is best when starting out to go for a smaller range of products to sell first. What do you think?

 

[fisicx]

I don’t have an accountant but I was advised that it is easier from an accounting aspect with less payment gateways and to use one bank account for your business. You have to think in practical terms as well as from customers angle too

Whoever advised you was wrong. All payments end up in the same business account, where they come from is irrelevant. Customers like having payment options. It means they can use their preferred method.

 

[fisicx]

I do wonder if it is best when starting out to go for a smaller range of products to sell first.

Yes!

Get your product range sorted before deciding on which website provider.

 

[Mr D]

Good points whatever niche has it pros and cons of course. Personal hygiene is a safe one but limits your offer. I do wonder if it is best when starting out to go for a smaller range of products to sell first. What do you think?

Until you know what sells to your customers you won't know enough to focus on a smaller range of products.
Remember, its not about what you like, its about what your customers like.
You may not want to buy the horrible green egg timer, your customers may.

Regardless of the historical data you come across on sites, regardless of bestseller lists, regardless of trade press, ultimately your business will depend on the customers you get. Someone else's customers may buy 100 wysiwigs a day but will yours? If not then focus on something else.

And sites matter too. Selling on ebay and amazon has taught me that the best selling item on one site is generally not a good seller on the other. Most of the time.
Occasionally you get lucky and the item you have for sale with a stock of 250 is featured in a magazine and you sell out in 4 days across multiple sites.
Mostly not that lucky.

 

[Mr D]

I don’t have an accountant but I was advised that it is easier from an accounting aspect with less payment gateways and to use one bank account for your business. You have to think in practical terms as well as from customers angle too

You record the money coming in as an entry. You record the money going out as an entry.
The extra work is an additional place to look. Goes to the same bank, affects your bank balance the same way.
It really is one of your most minor problems.

 

[MarkSS]

You record the money coming in as an entry. You record the money going out as an entry.
The extra work is an additional place to look. Goes to the same bank, affects your bank balance the same way.
It really is one of your most minor problems.

Thanks that’s cleared that up. One last question do you know which accounts are best for an online business to connect to?

 

[Mr D]

Thanks that’s cleared that up. One last question do you know which accounts are best for an online business to connect to?

Your business bank account.

I like Santander, free banking for 12 months then I get charged £7.50 a month thereafter. Gives the services I need and I rarely need to contact them.

Oh, and for gifts have a look at the trade mags (free).

Gifts Today
Gift focus.

 

[MarkSS]

Your business bank account.

I like Santander, free banking for 12 months then I get charged £7.50 a month thereafter. Gives the services I need and I rarely need to contact them.

Oh, and for gifts have a look at the trade mags (free).

Gifts Today
Gift focus.

Cheers I have a normal Santander bank account should be straight forward thanks

 

[gpietersz]

It also has an incredible API and excellent documentation for developers. Something you should always look for in a good provider/service.

If you need (or may later need) any kind of custom integration, then definitely prefer Stripe over Paypal.

 

[MarkSS]

Your business bank account.

I like Santander, free banking for 12 months then I get charged £7.50 a month thereafter. Gives the services I need and I rarely need to contact them.

Oh, and for gifts have a look at the trade mags (free).

Gifts Today
Gift focus.

I have checked and registered at those two sites they look very good a good selection of products and look good quality too. Thanks

 

[antropy]

I really don’t like worldpay (as a customer)

Plus it doesn't look like they've updated any code since 2005

Paul.

 

[iamzod]

Thanks everyone PayPal and stripe seem to be used a lot. Regarding the fashion store after further researching of suppliers snd advice it is a difficult sector due to partly sizes being vastly different to UK size snd returns refunds being high. There’s always that risk with other products. So looking at the gifts market with 3 good uk suppliers. Thanks again guys

Stripe & Paypal are about as expensive as it gets, easy to set up though.

 

[shumicps]

You can use the following payment providers which are best in use:

• Best Overall: Authorize.Net.
• Runner-Up, Best Overall: Stripe.
• Best for Online Businesses: PayPal.
• Best for Brick-and-Mortar Businesses: Square.
• Best for Startups: Braintree.
• Best for Multiple Channels: WePay.
• Best for Selling Internationally: 2Checkout.

 

[Ozzy]

You can use the following payment providers which are best in use:

I'm curious, on what grounds do you base those assessments on? Or, what website.

 

[Simon-TP]

I'm curious, on what grounds do you base those assessments on? Or, what website.

Seconded