12 {{ upvoteCount | shortNum }}
12 {{ upvoteCount | shortNum }}

Paypal vs. CB: customers are not paying the same amount

by AntoineM
10 replies
Dear All,

For an ebook of mine I'm selling, I have 2 sales pages that are exactly the same. The sole difference is the payment processor.

One page that I promote myself is using paypal. You can see it here.
The other page that is promoted by affiliates is using Clickbank. You can see it here.

However, due to how CB is handling VAT, my CB customers are actually paying more than my PP customers. And I found it rather... unfair.

Any idea how I can make the price similar for both payment plateforms ?

Thanks.

Antoine.
#amount #clickbank #customers #paying #paypal
  • Profile picture of the author Coby
    Figure out how much CB is charging for VAT and subtract that from the asking from at CB...

    Wouldn't that work?

    Cheers,
    Coby
    Signature
    .
    .
    {{ DiscussionBoard.errors[7836523].message }}
  • Profile picture of the author SunilTanna
    Cb will always offer several prices,because vat and sales tax amount varies depending on customer's location.

    If you want to make pay pal match cb, the question is which cb price?

    It's an insolvable problem. Either don't worry about it, or only use cb, since allows the customer to use a card or pay pal.
    Signature
    ClickBank Vendor?
    - Protect Your Thank You Pages & Downloads
    - Give Your Affiliates Multiple Landing Pages (Video Demo)
    - Killer Graphics for Your Site
    SPECIAL WSO PRICES FOR WARRIORS + GET THE "CLICKBANK DISCOUNT" TOO!
    {{ DiscussionBoard.errors[7836544].message }}
  • Profile picture of the author Istvan Horvath
    However, due to how CB is handling VAT, my CB customers are actually paying more than my PP customers.
    OK, let me translate this for you:

    I do not charge VAT because I don't care but CB has to charge VAT by the law... and buyers via CB will pay VAT and buyers via Paypal will not because I don't calculate the VAT added to the price.
    :p

    For those that are not from EU - VAT is similar to "sales tax" in US (or GST+PST/HST in Canada); Value Added Tax.
    Signature

    {{ DiscussionBoard.errors[7836599].message }}
    • Profile picture of the author WillR
      Originally Posted by Istvan Horvath View Post

      OK, let me translate this for you:

      I do not charge VAT because I don't care but CB has to charge VAT by the law... and buyers via CB will pay VAT and buyers via Paypal will not because I don't calculate the VAT added to the price.
      :p

      For those that are not from EU - VAT is similar to "sales tax" in US (or GST+PST/HST in Canada); Value Added Tax.
      Well let me tell you how that might work if it were in Australia and we were referring to GST (Good and Services Tax).

      Clickbank call themselves a retailer NOT a payment processor. Therefore, they are purchasing the product from you at a price of 92.5% - $1 and then selling it directly to the customer. If Clickbank were in Australia they would have to charge GST on those purchases made in Australia.

      However I am also in Australia and if I were selling those same items to Australians, I would not have to charge GST because I am a much smaller business than Clickbank and not over the GST threshold -- therefore I do not need to charge it. I think we need to register for GST when we go over $75,000 worth of sales inside Australia. Since majority of my sales are made overseas, I do not reach that limit and do not need to charge it.

      So in this example when Clickbank are selling the item to my Australian customers they would charge GST but if I were selling the product to those same customers, I would not.

      I'm not sure exactly how the VAT tax works and if every business has to register and collect VAT or if it's only businesses earning over a certain amount. But if it worked the same way as it does in Australia, I can see the OP's point.

      If Clickbank were just a payment processor and not a product retailer then they wouldn't need to charge any tax and the sellers would only need to charge tax on relevant purchases made in their same country. But they are a product retailer and this is why it makes things more confusing.
      Signature

      .


      .

      {{ DiscussionBoard.errors[7836827].message }}
      • Profile picture of the author AntoineM
        Originally Posted by SunilTanna View Post

        It's an insolvable problem. Either don't worry about it, or only use cb, since allows the customer to use a card or pay pal.
        True. I think these 2 are the most appropriate alternatives.

        Originally Posted by Istvan Horvath View Post

        OK, let me translate this for you:
        I do not charge VAT because I don't care but CB has to charge VAT by the law... and buyers via CB will pay VAT and buyers via Paypal will not because I don't calculate the VAT added to the price.
        :p
        True that I don't care, but not for the reason you think
        In my country I have a specific professional status (named "autoentrepreneur") and I don't have to pay VAT until I make a certain amount of money per year (and I'm still way below that amount... unfortunately).
        Signature
        52techniques.com - a blog about business development.
        Ultimatecoldcalls.com - eliminate your fear of cold calling.
        {{ DiscussionBoard.errors[7837412].message }}
      • Profile picture of the author Alexa Smith
        Banned
        Originally Posted by Coby View Post

        Figure out how much CB is charging for VAT and subtract that from the asking from at CB...

        Wouldn't that work?
        It's not quite as simple as this, because different European countries have different rates of VAT, which ClickBank uses IP-detection to add automatically according to the customers' locations.

        Customers in Europe are used to this kind of thing, online, and it isn't a big deal.

        Originally Posted by WillR View Post

        I'm not sure exactly how the VAT tax works and if every business has to register and collect VAT or if it's only businesses earning over a certain amount.
        In the UK, it's only businesses with a turnover in excess of the threshold that have to register for VAT, but others may choose to voluntarily (and some do, because there can be net advantages from doing so, depending on various factors such as the proportion of the business's own necessary purchases which are themselves VATable - some businesses reclaim more in VAT than they have to pay, so it pays them to register).

        Originally Posted by AntoineM View Post

        One page that I promote myself is using paypal. You can see it here.
        You're hoping, presumably, that your ClickBank affiliates don't find out about that one? :confused:

        Few (if any) serious, professional ClickBank products will be willing knowingly to promote a product for which the vendor also has a non-ClickBank sales/order-page elsewhere, where their ClickBank cookies are no use to them. As discussed in so many threads like this one.
        {{ DiscussionBoard.errors[7837424].message }}
        • Profile picture of the author AntoineM
          Originally Posted by Alexa Smith View Post

          You're hoping, presumably, that your ClickBank affiliates don't find out about that one? :confused:

          Few (if any) serious, professional ClickBank products will be willing knowingly to promote a product for which the vendor also has a non-ClickBank sales/order-page elsewhere, where their ClickBank cookies are no use to them. As discussed in so many threads like this one.
          This is ahah moment to me. I'm a total newbie to this. Thank you so much for the link. I didn't thought about this "leak". I'll probably removed the PP page, which will solve my original question in the process.
          Signature
          52techniques.com - a blog about business development.
          Ultimatecoldcalls.com - eliminate your fear of cold calling.
          {{ DiscussionBoard.errors[7842715].message }}
  • Profile picture of the author clever7
    I use Paypal and Clickbank at my online store (in the same page) because through Paypal I can sell my ebooks in monthly installements, while this is not possible through Clickbank. I prefer to be paid through Paypal and receive the payment in euros directly in my bank account than to have to wait for Clickbank’s check and have to pay a big percentage to my local bank to exchange dollars with euros. (I’m in Greece)

    However, I have an affliate program through Clickbank, and I also like to offer to my visitors the possibility to use Clickbank to purchase their ebooks in case they cannot have a Paypal account because Paypal doesn’t work in their country, or for whatever reason.

    I know that for my affiliates Paypal is a problem. They have to tell their customers to pay through Clickbank, so that they may receive their commissions.

    Many people do that. Other people are indifferent.

    What can I do?

    The idea to sell my ebooks through monthly installments was an idea I found in an ebook about how to sell more ebooks… It works for many people.

    I noticed the difference of the ebooks’ price because of the VAT and I complained about this matter, but I had a cold answer… this is how Clickbank works.

    I also noticed that European customers pay the VAT while they shouldn’t pay it, since they are buying the ebooks directly in euros.

    My friends advised me to ignore the problem of the VAT when I discussed this matter with them, and this is what I’m doing. I don’t know if this is fair or not, but I don’t have the power to do anything to change this situation.









    Signature
    Join my Affiliate Program and Sell Original eBooks
    Scientific Dream Interpretation – A Solution to All Problems

    How to Be Extremely Successful in Life
    {{ DiscussionBoard.errors[7837532].message }}
  • Profile picture of the author David Keith
    I would be more worried about what the "right" price is than if its fair.

    I am certainly not a world wide tax expert and there are tons of variables, but if you are selling to EU customers and should be charging the VAT but are not via PP then that could be a much much bigger problem for you at some point.

    The same could be said with the various taxes in every country like was mentioned in regarding AUS.

    The real question you need to figure out is "are you complying with all the tax laws of every country you sell in with every payment method you offer?"

    I know thats not nearly as fun a question to ponder, but that is the correct question to ask if you want to get this figured out the right way.
    Signature
    Just a Little War Room Gift.
    {{ DiscussionBoard.errors[7837580].message }}
  • Profile picture of the author SunilTanna
    In the uk vat applies only to sales to eea customers, and then only if your business is vat registered. You have to be vat registered if your eea turnover exceeds a certain amount, but you optionally can be regardless of turnover.

    As for non-eea businesses selling into the eea, I believe it is much more complicated than simply being required. When the eu introduced vat for non eu downloads it initially only applied to businesses doing more than 1 million euro in eea sales. The rules may have changed since then.

    I am not a tax expert, nor an advisor, so some details may be wrong get independent professional advice on tax matters.

    In any case, not collecting vat on eea sales doesn't necessarily mean you are doing something wrong.

    (eea = European economic area, which includes the eu and some other countries)
    Signature
    ClickBank Vendor?
    - Protect Your Thank You Pages & Downloads
    - Give Your Affiliates Multiple Landing Pages (Video Demo)
    - Killer Graphics for Your Site
    SPECIAL WSO PRICES FOR WARRIORS + GET THE "CLICKBANK DISCOUNT" TOO!
    {{ DiscussionBoard.errors[7837727].message }}

Trending Topics