Personally I find each of the following outrageous:
- the buyer being charged a $2 (40%) service fee on a $5 order
- the seller receives $4 (assuming a 20% seller service fee) on a $5 order/$7 transaction
- the marketplace receives $3 on a $7 transaction or 75% of what the seller receives
Many marketplaces seem to start out with a growth strategy where buyers, sellers and company growth are a priority, then transition to a profitability strategy and alienate both buyers and sellers with more and more unfavorable rates and terms often delivered in a non-transparent or deceitful way.
I try to avoid doing business for and business with companies that double dip.
How about you?
Is double dipping sustainable pricing strategy?