$1 processing fee... why?


#1

Yesterday I was asked by a buyer (the first one in a very long time, and now I know why…) who asked me to remove the $1 processing fee since he/she doesn’t want to pay for it. This was the first time I was hearing about such a fee, so I opened one of my gigs to see what he/she was talking about, but I saw nothing except the $5 order button. Then I proceeded to purchase my gig and I saw that Fiverr is charging $1 extra for processing, so instead of $5, my gig costs $6. I don’t understand why is Fiverr charging this amount when they are already getting $1 from each $5 spent on gigs, and if that dollar isn’t charged for processing then what is it charged for? This changes the whole concept of the site which should now be called Sixerr instead of Fiverr. And why isn’t the $1 fee showed on the gig page right before the buyer hit the buy button? I think this is misleading. I also think that we are loosing buyers because of this fee, therefore, we deserve an explanation.


#2

I think your real issue is the buyer being an asshat. There’s literally nothing you can do about the $1 processing fee. It is a bit sneaky to add it in without any fanfare (or at least I didn’t notice until people started moaning on the forums), but Fiverr can do whatever it wants, really. I’m not sure that we necessarily deserve an explanation, but the honest one would be “moar $$$$$$!”, while the official one would be more like “we are constantly working to improve our service and this is just one aspect of our dedication to making Fiverr a better place. Check out our awesome new improved smiley faces that everyone loves!”

Also, purchasing one of your own gigs is something the Trust and Safety team doesn’t like. Better not to mention that.


#3

I didn’t purchase my own gig. I opened my gig with another browser where I am not logged in and pressed the buy button to see what will show on the next page, and there I saw the fee. You can try it for yourself and see.

BTW the buyer told me that he/she recently bought other gigs and there wasn’t such a fee. So it appears that not all gigs have this fee, or the buyer is lying to me.


#4

If the buyer is buying with his Fiverr credit, there isn’t a processing fee.

From the Terms of Service: “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.”


#5

For buyers that purchase many gigs each week at $5 or $10 this may start raising a few eyebrows, especially since they have risen from .25c, then recently to .50 and as of now $1.00.

As a buyer, I didn’t get an email, update or notification about this 50% increase in fees.

The first time I noticed the extra charge was when I was paying via Paypal - the fee is hidden until you get to the payment page. I guess many buyers haven’t been informed of the extra charge as yet and most sellers do not see the increase in buyer fees in their accounts either. I guess Fiverr will keep this low key until it becomes the norm and buyers just start to accept it.


#6

Yes, Fiverr can do whatever they want. But a 20% processing fee to buyers is substantial. Multiple this by the millions of transactions per day.
The problem people seem to be having with this is both that it has been done in a sneaky, underhanded and unscrupulous manner (there has been no email announcement) and the fees are akin to that of loan sharks and bookies… not a reputable safe company to do business with.
I personally purchased 102 gigs on Fiverr last year so the addition $1 fee on a $5 gig (and many gigs I purchase are more than $5) means probably an extra several hundred dollars over the next year for me.
If the money was going straight to the seller, I would have less of an issue with the fee increase - I think you guys totally deserve it! But Fiverr suddenly became an ugly, untrustworthy company to deal with.


#7

If Fiverr does not add a way for buyers to deposit money into their account in bulk amounts (like ThemeForest does), I’ll hire my workers elsewhere. Lots of freelancing sites to choose from!

I’m not paying 20%


#8

Fiverr is slowly turning their back on their loyal user base. Hopefully they rectify before it’s too late.


#9

Why is the buyer an asshat?? The site is called “Fiverr”. Why then is it not appropriate to complain if you get charged more? That my friend is what is called a rip-off and I would submit that the vendor (Fiverr) is being an asshat.

The fact that you think Fiverr can “do what they want” suggests you know nothing about commerce.

Suggesting we don’t “necessarily deserve an explanation” is clearly a lack of basic understanding about customer service and goodwill and would leave you pretty much on your own in that opinion based on the overall sentiment of Fivver users with half a brain.

Whilst people may not be able to force Fiverr not to charge a fee initially, if another “smarter” service pops up and starts offering deals to sellers, how long before the “processing fee” disappears when they start losing large volumes of sellers and their revenue!!

If you’re going to going to comment in these forums, why don’t you try adding some value instead of just venting a load of diatribe?

Have a pleasant day.


#10
  1. it is not the seller’s fault that Fiverr suddenly increased the processing fee without apparently letting anyone know. Yelling at the seller achieves nothing.

  2. I was being sarcastic when I suggested we don’t necessarily deserve an explanation, related to the above point.

  3. You love your little ad homs, don’t you?

  4. There will always be another service that crops up–but right now there isn’t one. Maybe Upwork, but they did the same thing, had general uproar and carried on ahead anyway. See point 2

  5. Your opinion in your penultimate paragraph is based on a misreading of what I said.

You, nor I, are going to get an explanation. They want more $$$, that much is obvious. Customer goodwill and service sometimes slips in this quest.

The buyer should take his opinion to Customer Support–but not blame a seller who also had no idea and demand that he remove it when he cannot. That’s just asshat behavior.


#11

That’s not a bad idea, actually.


#12

The fact that you think Fiverr can “do what they want” suggests you know nothing about commerce.

Since the site belongs to fiverr, if they want to charge a ten dollar or hundred dollar service fee they can do that.
This is the rule of ecommerce: the site owner can charge whatever they want.

Emmaki is one of the most popular and interesting long time contributors to this forum, as well as one of the more successful sellers. We could use another dozen like her around here.

You have a pleasant day too!


#13

I am a regular buyer I spent over 2000 in order in the past and unless i lump 4 gigs I wont get the 5% fee.
I suggest that fiverr change the name to twentyerr to be more honest on the fare minimum order of 20 or pay 20% fee.
this makes and impact on my orders and I hate greedy people or bussines.
does any body knows of an alternative to fiverr?


#14

You have many unscrupolous sellers in Fiverr. When they cancel your order just because they can’t meet the deadline, Fiverr will not return you the processing fee. It is a rip-off. sometimes I really wonder if Fiverr is working with some sellers to accept order then cancel it at the last minute because they can’t meet the deadline, to make extra cash.


#15

sometimes I really wonder if Fiverr is working with some sellers to accept order then cancel it at the last minute because they can’t meet the deadline, to make extra cash.

This is a mindset that would think fiverr is a couple of beer guzzling 18 year olds who share an apartment and need a little extra cash to buy Pizza with. So they get a few friends to make accounts so they can steal a dollar here and there.


#16

S/he is probably lying to you or s/he’s referring to gigs bought before the change. I’ve had buyers accuse me, too, of raising/tacking on fees, when I obviously don’t have any control over what fees Fiverr charges them when they place an order.


#17

This is kind of disappointing. It would have been nice to have been informed in some way that this was happening. I know they updated their ToS, but this is a big change that directly affects their sellers and their buyers and no one really heard about it until it became a road block in between sellers and getting orders.

I’ve seen a huge decline in sales since the beginning of July, so much so that it’s becoming not really worth my time to be on Fiverr anymore. I’ve gone from being totally overwhelmed all the time, to barely scraping in an order a week. That’s a big problem and it doesn’t seem to be related to anything I’ve done to or with my gigs. I’d be interested to know what prompted this increase and, more importantly, if it has affected the majority of sellers similarly or if I’m just have a slow…quarter, I guess.


#18

Yikes, one order a week? I haven’t noticed a particularly marked decline, but I did just move over to packages and it’s been slow since (it’s only been 3 days so not really long enough to blame packages). Most of my buyers at the moment are repeat buyers–I’d be in pretty dire straits without them. How is your gig placement in search results etc?

I reckon the increase was just greedy and it was definitely underhanded, but that’s just an opinion. There have been a few buyers who claim to buy thousands of dollars’ worth of gigs annually who are now taking their business elsewhere because of this, and I’m sure some did (but where? UpW just meddled with their commissions and fees despite the entire community saying “WTF”!).

As it is, I’m being a lot more proactive about grabbing dem sales, and I dislike it as I loved that the mek sells came to me before. So I guess the pool is drying up somewhat, but I doubt its just the fee increase that’s to blame. Fiverr has an appalling rep on many of those review a website places (disgruntled people who broke TOS/didn’t research and/or expected A1 quality at F-100000 prices in the main) and of course there’s some irritation that Fiverr isn’t just $5 any more.

Smart money’s to diversify… Didn’t Fiverr just get a $50m cash injection? I await the next fresh horror…


#19

i’m getting the same or even higher “impressions” than I was previously. I’m not exactly sure where I am in search results (because I cough cough uh…don’t know how to check???), but I assume that if I’m getting the same number of eyes on the gig, I must not have fallen or been removed entirely. Shrug

I have been signing up on other sites. It’s just depressing to have to diversify and essentially start all over somewhere else when I’ve always been able to just use this one outlet and then work with maybe five or six outside clients on the reg. Oh well. First world problems, right? I’ll either work it out or get a “real” job and let my wanton gypsy freelancing ways go. At least then, I wouldn’t have to constantly explain my crazy freelancing to extended family, in-laws, and acquaintances.


#20

I have a featured gig that is usually on the first row at certain times of day, but my prices are offputting. As is my word count. That’s the most viewed gig. All my others, which I only checked after packages are laughably invisible. I think it may be the featured and “!” at my prices then looking at my (much cheaper) other gigs that saves me.

Starting on a new freelance platform is always rough. I’m doing it now on quite a few and… well, it’s rough. These are more or less dormant accounts so it’s not like I’m a total newb, but still–a cloak of invisibility shrouds me and I have to work that shit hard while asking for peanuts!

If all else fails, I’ll go back to being a rude waitress/find a rich man/win the lottery.

I remember you mentioning you had superlong lead times (like 30 days or whatever), maybe cut those down if you haven’t already? I’m considering doing the same for mine to see if that massages the figures a bit.