PayPal payments in an online store

As soon as the first customer outside the country appears, the question of collection arises. The domestic payment system is unknown to them, and cash on delivery is out of the question.

SoftCave platform executive report: business indicators, channel efficiency, sales funnel drop-off and delivery risksCOMMERCE INTELLIGENCE | EXECUTIVE EMAIL BRIEFRecipient: Owner / Managing DirectorSTRATEGIC FILTERS & BUSINESS RULESRule: High Traffic / Low ConvFunnel Leak: Checkout drop > 40%Risk: cash-on-delivery returns > 8%Monthly report (May 2026)Export PDF report1KEY BUSINESS INDICATORS (EXECUTIVE KPI SNAPSHOT)REVENUE REALISED (ERP)0 €32.400 €76.850 €114.200 €138.900 €142.500 €▲ +8.2% (vs GA4 ordered: €158k)NET CONTRIBUTION (MARGIN - ADS)0 €6.500 €15.800 €23.400 €28.200 €Gross margin: €44,745 (31.4%)BLENDED CAC / AVERAGE BASKET0.00 € / 0.00 €2.10 € / 45.00 €4.50 € / 61.20 €5.42 € / 68.50 €CAC/AOV share: 7.9% | Free delivery threshold: €80ORDER FULFILMENT RATE0.0%42.5%68.0%81.3%88.4%▼ 11.6% cancellations / 4.2% courier returnsPOAS (PROFIT ON ADS)0.00x1.20x2.15x2.85xROAS: 4.8x (Healthy cash flow)2CHANNEL EFFICIENCY AND ACQUISITION PROFITABILITYCHANNELSESSIONSCONV. %REALISEDROASPOASSTRATEGIC DECISIONPaid Search (Google)42.500 (34%)2.45%42.470 €4.8x1.62xScale budget +15%Paid Social (Meta)35.000 (28%)1.18%24.700 €2.4x0.88xReduce / switch off ad setOrganic Search (SEO)27.500 (22%)3.10%38.250 €--Strengthen SEO categoriesEmail / loyalty base13.750 (11%)5.20%23.200 €14.2x4.80xIncrease frequencyDirect / Referrals6.250 (5%)2.80%8.380 €--Track retentionOwner's view: Email brings the highest net margin at minimal CAC. Meta campaigns need their audience reviewed.3ECOMMERCE FUNNEL DROP-OFF (GA4)1. PRODUCT VIEWS125,000 sessions100%2. ADD TO CART10,500 sessions8.4%3. INITIATE CHECKOUT5,460 sessions4.3%4. PURCHASE3,047 orders (Overall conv: 2.43%)▼ Drop-off 91.6% (adds to basket: 8.4%)▼ Cart abandonment: 48.0% (delivery costs)▼ Checkout drop-off: 44.2% (mobile form)Profit lost at checkout: ~€18,500 in potential margin lost at the checkout step.4PROMOTION RANGE AND STOCK HEALTH[HIGH TRAFFIC / LOW CONV]SKU: 4892 - Tech Pro winter jacket1,420 visits | Conv: 0.42% | Stock: 84 pcs | Capital tied up: €4,200Decision: Cut the price by 10% to speed up turnover and free up cash flow.[HIDDEN GEM / HIGH MARGIN]SKU: 1042 - FastCharge wireless charger180 visits | Conv: 6.20% | Gross margin: 42% (€18 per unit)Decision: Move to position #1 in the category and increase the Google Shopping budget.[DEAD STOCK / NO SALES > 60 DAYS]14 SKUs (seasonal products)Total tied up at cost price: 12.450 € with no working capitalDecision: Create an outlet bundle and free up warehouse space.[RETURNS & MISSED DEMAND]SKU: 7711 (S3 trainers - returns 24%) | Enquiry: two-piece black412 searches with no results (estimated loss ~€3,200 in turnover)Decision: Fix the size chart for SKU 7711; add the requested range to purchasing.5CHARTS: DEVICES & COURIER RISK BY CITYDevice imbalance: share of visits vs revenue realisedVisits (%)Revenue (%)Mobile74% visits40% of revenueDesktop26% visits60% of revenue! Owner risk: 34% of revenue lost on phones because of how long checkout takes.Courier risk: rate of refused cash-on-delivery parcelsTOLERANCE THRESHOLD (8%)Belgrade2.1% (48% of shipments)Novi Sad2.8% (18% of shipments)Kragujevac4.2% (10% of shipments)Niš & South9.4% OVER THRESHOLDCash flow protection: SMS verification for cash on delivery enabled for red-zone cities (>8%).

PayPal is the shortest route for such customers. The store connects to your business account, the customer pays in the currency you set, and payment confirmation comes back before the order enters processing.

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What you actually get

Collection in foreign currency

You choose the currency you collect in yourself, independently of the currency the store is shown in to domestic customers.

Confirmation before dispatch

An order is accepted into processing only once the payment is confirmed, so goods are not sent on the basis of an unfinished transaction.

Sandbox and live mode

The connection first runs in sandbox mode, where the whole flow is checked without real money, and only then moves to live.

Records against the order

Transaction data sits with the order, so reconciling with the statement is a matter of minutes.

Visible only where it makes sense

PayPal can be shown only to customers abroad or above a certain basket value, so it does not clutter the rest.

Common questions

Do we need a PayPal business account?

You do. The store connects to the business account through credentials you issue yourself and can withdraw at any time.

Can domestic customers pay with PayPal?

They can, if you allow it. In practice this payment method is most often reserved for customers abroad.

How is such a sale fiscalised?

As a cashless payment, by the same procedure as a card payment. The payment method carries over to the fiscal receipt.

What about exchange rate differences?

The amount in the store is converted at a rate fetched automatically, and collection runs in the account currency. The conversion is described on the page about currencies and exchange rates.

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