Shopping with a Pal

With the holidays just around the corner, PayPal has recently announced that they will be price matching, offering free shipping on returns and financing products for 6 months either online or in store up until the end of December.  Doesn’t this sound pretty good? You don’t have to stress about paying those outrageous shipping charges and can return anything without hassle.  Also, you can get the best deal that is out there easily.

PayPal is going one step further when consumers purchase a product within  30 days and a different store has the same item for cheaper they will give the consumer the difference in the price back. All the consumer has to do is fill out a form  and write which store has the product and the price and PayPal will take care of the rest.  Each PayPal user can get up to $1,000 in matching up until the end of December.

With PayPal’s free shipping policy, they are allowing customers to return any item for free providing them with free shipping labels or they customer can pay for their shipping and they will be reimburse the cost to their PayPal accounts. There are limits though on how much money you must spend to receive free shipping. For the promotion there is an $100 limit. On top of that they are providing free financing for 6 months on any purchases over $99. This is a great deal for people who may not have all the money up front and if they know they can pay it off before the 6 months, they will not be charged any interest. For people who know they cannot afford to pay a product off in 6 months or less should not finance because they will be charged interest which will accumulate over time.

These are holiday specials that PayPal is offering and is not something that will be long term. However, I think that if the company is able to generate enough customers to take advantage of these promotions I think they should keep them as long term, rather than short term. Especially having so many competitors out there such as Amazon, who offers free shipping on $25 dollars or more, PayPal would benefit from offering these services. I also think that they can potentially boost their sales because as a consumer I always look for free shipping and places that will match prices of other competitors.

I think that PayPal is heading in the right direction and if this holiday season turns out to be a success for the company, I predict more offers and deals to come. What do you all think about PayPal offering these holiday specials?


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6 thoughts on “Shopping with a Pal

  1. I think what Paypal is doing for the upcoming holiday season is wonderful! Who doesn’t like to be reimbursed the price difference if the product was found cheaper elsewhere? I definitely agree with you that if this goes well for Paypal, there is a possibility there will be more deals and promotions.

  2. I think this will be an excellent opportunity to help convince e-retailers to use PayPal. However, I’m unsure of how profitable this will be for the company, and honestly expect it to be a loss leader. One thing that stood out in particular about your article that it failed to mention that PayPal does not actually sell things, they just facilitate the transactions. Because they only take a small percentage as a service fee, I do not see this being enough to make up the difference for the free shipping and price matching. What I believe is the best part about this offering from PayPal in terms of revenue for the company will be the credit terms. Hopefully for them, people will not pay in the first 6 months, and then they will be able to recoup their loses from the other incentives given in this program with the interest charges.

  3. It is really interesting to see something new in terms of customer satisfaction. Allowing customers to price match within 30 days of their purchase shows good faith that PayPal is on the customer’s side and trying to get the customer the lowest price possible. I agree with you that this promotion may bring in some new customers during the holiday season. In addition to this, I think that if it is successful, customers will come to expect this treatment year round.

  4. I think that this is a really great idea to generate more customers. Its a very strategic way that many other companies don’t offer, which surprises me. However, I know that this is only temporary which may pose as a hit to PayPal after the holiday season is over. I also have to agree with the comment above that says that PayPal only facilitates transactions, as in the middle man. I feel as though because of them only being the middle man, PayPal will only get a small percentage of the profit made from the companies that are using PayPal. PayPal might possibly be at a loss, but then again, so many companies will decide to use this option that it will either make up for the shipping and other fees involved or it will not make a increase or decrease at all and will not change anything. All we can hope for is the best for PayPal and that it will be in their favor at the end of the season!

  5. PayPal is just being competitive in the market. They are following other retailers who are matching prices and offering free shipping. I think we will see more deals and see of the best holiday since the recession.

  6. PayPal, like mentioned above, only facilitates the transactions. As a loyal Amazon costumer, PayPal is not necessary for using Amazon transactions. I feel that PayPal is trying to bring back customers by offering a shipping policy that so many other companies already offer.

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