I am setting up an online store and am trying to figure out the best way to do it. I have come up with a few options.
1) I could get relatively cheap hosting and use something like CubeCart. If I did that I would use either PayPal or 2CO for payments. From what I can tell, PayPal looks to be a lot cheaper, but a lot of people here seem to like 2CO. Why would 2CO be a better option than PayPal?
2) I could also use GoDaddy for my hosting along with their Quick Shopping Cart program. I would probably use PayPal if I did that. It would be more expensive, but they do have things to make it easy to list your items on Froogle and Ebay.
Does anyone have any thougts/recommendations for me?
First, understand that 2CO (like ClickBank) are resellers. What that means is that technically they are selling your product. If, for some reason, they don't like what it is that is being sold (i.e., porn, tobacco, wine, drugs, etc.) they will not process the sale.
One advantage that isn't mentioned very often in regards to resellers is that they are responsible for the sales tax, which means you do not need to deal with the State Franchise Tax Board when it comes to collecting sales tax. The disadvantage is that you have to play by their rules.
When comparing PayPal to 2CO keep in mind that PayPal is not a reseller like 2CO.
A lot of people use both PayPal and 2CO because some customers believe that you have to be a member of PayPal in order to use them. Basically, the idea is to remove as many obstacles that might cause a buyer not to purchase your product. In short, use both services.
Originally posted by afmaury Would it be better to just set up my own merchant account? It seems like it might get kind of complicated to have both PayPal anc 2CO.
Hmmm... Complicated? I guess if you are using shopping carts it might be. 2CO does offer a shopping cart, but from what I've read in this forum user's report that they have trouble with tech support--I don't know how accurate this is since I've never set up a cart.
As far as PP having a shopping cart, I'm sure you'll be able to find 3rd party applications to do the job for you.