$1 Processing Fee - The Fiverr Greed


#1

Let me start this way. Did anyone get an email from Fiverr that their buyers will be charged $6 but the seller will only see $5 ?

As for me, I never got any email stating adjustment in charges and fees. You can imagine how shocked I was, when a buyer ordered my basic gig. And as my usual style, I tried to convince the buyer to go for the gig extra to make his order solid. Only for the buyer to ask me for a $4 offer, because he already paid 6 bucks for the basic gig.

This got me really confused. To be frank, I politely disagreed with him over this, saying that he only paid 5 bucks. He was however very matured by accepting $5 extra offer I sent him.

I will later do my little research and found out buyers will have to pay $1 processing fee. To keep this short, fiverr is not taking the sellers into their policy direction. The fact remains, their is no business for fiverr without the sellers.

You may think the $1 is small, but it has defeated the sole aim of FIVERR BRAND - which is based on 5 bucks. Now, lovely buyers are charged 6 bucks.

This is a massive corporate blunder. This is misinformation. This is deception.

This is totally unfair, not only to the sellers, but most importantly to the buyers.

Fiverr should change its name to 6xers to be fair to all.


#2

Beware: Someone will say you’re Cheap, your buyer are CHEAP, if you don’t like the platform with $1 processing fee, just leave!

I totally agree with you though, but what can we do? They already made the decision and it’s running. All we can do is accept it and find our new way to adopt , change ourselves to fit in it.


#3

Like you said, we can only adopt the policy. There’s really nothing we can do.


#4

Yes you are 100% right


#5

Thanks !!


#6

Lol. 6xers. :joy:


#7

The only thing it will do is reduce the chance of sellers getting tip, A tip is always a good motivator for me. However, since buyers on fiverr are supposed to be more price sensitive. There goes our tips.


#8

Interesting. Since when are buyers charged by Fiverr? Where can this information be found?


#9

This post was flagged by the community and is temporarily hidden.


#10

buyer side $5.00 fee plus $1.00 a total charged from me $6.00


#11

OK, here it is:

Processing fees are added at the time of purchase where a buyer can review and accept the total amount requested to pay. These fees cover payment processing and administrative fees. As of July 2016, the current fees assessed to the total purchase amount are $1 on purchases up to $20 and 5% on purchases above $20. When purchasing from your seller’s balance (i.e. out of your earned revenues) or buyer’s shopping balance (resulting from any credits or refunds) you will not be charged a processing fee. Funds returned to your balance from cancelled orders will not include processing fees paid.

Oh, and I don’t care what Fiverr charges the buyer. Just as the buyer doesn’t care what Fiverr charges the seller. Maybe the extra cost will keep bad buyers at bay. But however, I don’t care.


#12

There is another $1.00 at the end when I choose to tip my seller. So, if I buy a $10 gig + $1.00 processing and the seller does such a fantastic job I want to tip him/her it’s a minimum of $5 + another $1.00 processing fee.

I’ve bought about 32 gigs so far this year and paid about $52.00 in processing fees. So, that measly $1.00 adds up.


#13

The processing fee hike was a debacle and definitely should have been made an announcement beforehand, but what’s done is done. I’m sure a few buyers have left as a result.

That said, the only solution here for sellers is to target buyers with bigger budgets who aren’t so fazed by the $1/20% fee or whatever it is now. A lot of very talented people work here for much less than they would get IRL for various reasons, and when they find a good buyer a good price, that fee really isn’t anything much–it’s still a saving. I know that sometimes I get asked to recommend someone for work (no, don’t spam my inbox, you’re automatically disqualified from recommendation if you do that, as I would hate any client of mine to get a spambag on my rec).

A final point: Someone who was here when Fiverr started out (2010?) or at least an early bird here can confirm this: I’m pretty sure the old 50c/10% fee was in place then. Are not even “cheap” corporations like Fiverr allowed to adjust for inflation?

OP, you got a cheap buyer who wanted you to pay his share of the bill. Academics of the fee rise aside, that’s not someone you want to work with, even if they did so graciously agree to let $1 ($1!) slip.

Sexerr (hurr durr) is an awful new brand name as this brouhaha will just come up again when the next fee goes up, and Fiverr is moving away from cheap and cheerful. Don’t forget all the tasty ad revenue that’s going to come in shortly which will guarantee another slice of the pie, along with the tasty, tasty drama it will also cause when people who can’t do a thing use it to gain prominence and a buyer pays for ludicrously bad quality work… and can’t get refunded, only credit. First time burnt… second time burnt… third time gone with the wind.

Quite a lot of reform needed, in my opinion, but I’m not going to hold my breath.


#14

The reason the buyer got charged the $1 is because they did not have funds in their account. If right now I ordered from you, and you offered me a $5 gig, I would get charged $5. If I had a zero balance, then yes, Fiverr charges a surcharge fee to have the money transferred to the account to pay you for your $5 gig. As it happens, should that buyer have completed your gig for $4 offer price, they would actually have been charged $5 to include the surcharge. Fiverr may need to make things a bit more transparent sometimes for buyers - including ensuring inexperienced buyers realize the fees that are charged for both a seller and a buyer. Again, if you’ve been here long enough you know the lay of the land but a lot of new buyers are looking for really discounted prices for good work, and don’t realize when they try to get someone to do work that 20% of their “Revenue” is getting removed in fees - so it limits really great workers to be able to charge higher prices. The best thing you can do is offer your services here and on other sites - and slowly, as you gain credibility, you can charge more to offset the fees.


#15

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#16

I’m gonna drag up the boring old TOS that nobody reads anyway:

Processing fees are added at the time of purchase where a buyer can review and accept the total amount requested to pay. These fees cover payment processing and administrative fees. As of July 2016, the current fees assessed to the total purchase amount are $1 on purchases up to $20 and 5% on purchases above $20. When purchasing from your seller’s balance (i.e. out of your earned revenues) or buyer’s shopping balance (resulting from any credits or refunds) you will not be charged a processing fee. Funds returned to your balance from cancelled orders will not include processing fees paid.

https://www.fiverr.com/terms_of_service

So 20% on a $5 order ($6 total), $1 up to $20 (varying %) and 5% thereafter. Now we can all argue with the facts instead of what someone was told or thinks (including me).

This new change came about not long after OD/UpW’s change to their own feed structure, so Fiverr may well be repositioning their place in the market. For example, @vedmak, you state that some buyers will spend " easily thousands of dollars" on this fee ($20,000 yields $1000 in fees plus 20% seller side). I am not that good at math, but let’s see, 20k/20 = 1000 so er I give up the same fee?

I took a look at UpW fees and got bored. They look a bit better for buyers though.


#17

I know right… sounds ridiculous …lol


#18

I doubt it will reduce chance of getting tipped… you know fiverr already got this covered through the new gig pricing. That way, you least price can be anything you want.


#19

Arguably, fiverr is one of my most reliable trading platforms, even with the pretty high 20% commission. But, IMO, if you gonna alter your T&C, the least you could do is to send a mail to all concerned.


#20

Check fiverr’s ToS