MyStoreCredit Launches MyStoreRewards Service for Auction, Ecommerce Sellers...

[mandy]

...who accept PayPal.

This new service only works if your customers pay with PayPal making it useless for the majority of  ecommerce store owners who do not sell exclusively on eBay and offer payment methods other than PayPal 

Merchants accepting PayPal payments can now operate a turn-key reward program for their customers. The new MyStoreRewards customer loyalty service is offered by MyStoreCredit. Inc., and is available to all merchants who accept PayPal payments.

full press release: http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20060508005907&newsLang=en

faq: http://www.mystorerewards.com/msr/faq.htm

3. What does MyStoreRewards cost?


We have three simple fees and there are no hidden costs for MyStoreRewards.

First, we charge a monthly service fee of $7.95 per account. This covers unlimited transactions and you can have multiple seller IDs on one account.

Our second fee covers emails we send to your buyers. We charge $0.01 per email when we send an invitation email to your buyers and when we send reminder emails to your buyers. You choose the frequency of the reminder emails (every 15, 30 or 45 days). You will get monthly reports detailing every email sent to your buyers. Reports will show opt-in rates, email open-rates and buyer click-thru rates

Finally, MyStoreRewards charges $0.10 for each rebate reward we issue for you. You always have complete control over setting reward amounts and you can stop your reward program at any time.

We will bill you monthly for our fees. You will not incur fees during your free trial. We bill through your PayPal account. Because our service is integrated with PayPal, we do not currently accept any other payment methods except PayPal.

In addition to our fees, you will incur the cash reward amount you give your buyers. In most cases, we suggest cash rewards equal 1-5% of the payment amount your buyers pay you. Rewards cannot exceed $10.00 or equivalent currency for any buyer in any 24 hour period. Rewards are issued ONLY after a buyer pays you.

Finally, PayPal charges a flat 2% fee on all reward amounts offered. We process all your rebate rewards directly through PayPal so you will need to keep enough balance in PayPal to cover rewards.

An example: If you offer a 1% reward on a $100.00 purchase, your total cost would be $1.12. $1.00 would go to your buyer (1% of $100); we would charge you $0.10 to issue the reward and PayPal would charge you $0.02.

[iron_chick]

Uh . . . don't most ecommerce shopping carts have the ability to give ones customers coupons as well?  (At no cost to the merchant, other than the discount.)

Wouldn't that make this service pretty much . . . useless and overpriced?