New ToS - Processing Fees [ARCHIVED]


#1

It seems really strange to me to add a processing fee of 5% for buyers. There’s no mention of it on the gig page before you order which makes it look very much like a hidden fee for a first time customer!

Let’s say I do a job for $500. Fiverr already earns $100 but will now get an extra $25 from the buyer in processing fees.

This is a site that just received $30million of investment. I can’t imagine the overheads are that high. I’m looking forward to asking the team about this at the London event on Wednesday.

What are everybody else’s thoughts?

As with other updates, it would have been nice to have been told in advance rather than on the day of the change so that we can help buyers with questions, etc. Also, highlighting the changes in the ToS would have been a good shout.


#2

Stop picking on Fiverr guys. They have to pay someone to no keep you informed about things. It takes a solid effort from a strong team to make sure no one sends out a simple email. Those guys deserve raises. Plus when they do something… who do you think writes those form letters that have absolutely nothing to do with the problem you asked about eh?



I’m just so pleased with the service that I get here. I wept with joy when I found out that I could take an outside customer and bring them onto Fiverr with custom quotes. I was feeling guilty that the customers I get outside of Fiverr weren’t paying Fiverr any money. Thank you for fixing that problem for me.



So let’s show a little appreciation. Let’s raise the cut Fiverr takes. I’m sure all the sellers will be happy to get .50c for every $5 they sell for this site.



And guess what… there are options. I know I won’t be able to say terribly much here. But google ‘sites like’ and you’ll find a few sites that let you enter one website and will pull up a list of websites that are similar. It’s hit or miss sometimes but you’ll find some very strong competitors.


#3

Here’s the issue as outlined by my most recent experience as a buyer. I ordered 8 gigs amounting to $40 a couple of weeks ago before the processing fee was instated. The seller and I mutually agreed to cancel the order because the seller wasn’t going to be able to meet my requirements, so I was refunded the $40.



I’ve found another seller who should be able to complete the job. But as the buyer, now I’m subjected to a 3.5% processing fee. What if this seller can’t complete the job either and decides they want to cancel too? Sure, I will be refunded the gigs amount, but now I’ll be subjected to yet another 3.5% processing fee upon finding the next seller. Do this enough times and now I’m paying more in processing fees than the initial gigs I ordered. Does anyone else see a problem with that?


#4

I think that’s not a good thing to implement. Buyer comes to Fiverr and thinks that he/she will get something in $5 and in the end they will have to pay more. Eventually they will drop the order which will leads to low sales for the seller and as well low sales for Fiverr as well…


#5

Reply to @ryangillam & kjblynx



So if I understand, if there is a mutual cancellation, than the buyer will not get the processing fee back as a refund?



If that is the case, maybe I need to put in my gig instructions to buyers something like:



PROCESSING FEE



Please contact me before ordering to discuss your order to prevent from losing your processing fee due to cancellation.


#6

Reply to @jonbaas: I have had three people today ask if they can purchase from me outside of Fiverr due to the new fees (they pay upwards of $200 at a time. This means they will need to pay $10 more than what they were previously paying. It may not seem like a lot in the grand scheme of things, but people do not want this change). I said no (obviously). There are people who have that mindset. People do not want to pay more than they have to. I am sure that there are others out there who feel sort of ‘duped’ as they go through the checkout process and find that a charge is added on.


#7

Either I’m not informed or Fiverr isn’t informing. Which is it?



Like most of my fellow Fiverr members, you probably lead a busy life. Some changes should be emphasized in more prominent places. Better yet, why fiverr doesn’t get feedback from their members is beyond me.



So will this new change only effect buyers or does it effect both buyers and sellers?



I do both on Fiverr (buy and sale). Actually I bought over $1500 worth of gigs so far this year alone.



Ugh! Fiverr is the only game in town so there is no where to go, no where to hide so fiverr got us.



Good luck to all.



p.s. They must need the extra money to pay for all the bugs Fiverr developers create? Can we start having fiverr pay a bug fee? :slight_smile:


#8
kjblynx said: I really really don't like this. I'm curious which side of the transaction between Fiverr and PayPal this is coming from because if it is Fiverr I'm done with them. They are making plenty of money off the sales, no need for them to get really greedy.


The fees would come from Fiverr. They will already have been charging Fiverr a fee for payment processing (1.4% based upon the number of sales Fiverr generates on a daily basis) but Fiverr has just decided to pass on that cost to customers in a bid to boost their profits. Nothing would have changed on Paypal's end. The transaction fee is Fiverr's way of milking people.

This means that Fiverr is making a whole dollar on each order AND using the transaction fees to pay staff wages and PayPal fees. It is wrong.

#9

Reply to @ryangillam: I’m with you on this. Don’t forget that sellers already pay the PayPal fee for withdrawal each time too.


#10

Reply to @kjblynx: Wording from the ToS is “As of November 2014: $0.5 on purchases up to $10 and 5% on purchases greater than $10.” No upper or lower limits unfortunately!



@steveeyes - that means you would have had to pay an extra $75 on top of the money you spent.


#11

If the MARKET speaks their dissatisfaction loud and clear Fiverr may listen.



I realize that members are the market but if they just complain and keep buying, revenue goes up and Fiverr stays the same.



So complaining is not going to change anything but it does help to rant to get it off your chest – I think we are going to see a lot of ranting with little change.


#12
deanstokes said:
  • Reply to @ryangillam: I'm with you on this. Don't forget that sellers already pay the PayPal fee for withdrawal each time too.







Which is a fee that we should not in theory have to pay. Fiverr already profits on that too.

#13

While I do not wish to jump into the debate regarding whether this fee is right or wrong, for now, I would like to remind people – regardless of our stance on this issue, this is still Fiverr’s website. They are well within their rights to charge this fee to buyers. They have, no doubt, already assessed it’s business value and are aware of any consequences in enacting it. By choosing to sell – and buy – here on Fiverr, we agree to the Fiverr TOS, no matter what fees they choose to assess.


#14
jonbaas said:
  • While I do not wish to jump into the debate regarding whether this fee is right or wrong, for now, I would like to remind people -- regardless of our stance on this issue, this is still Fiverr's website. They are well within their rights to charge this fee to buyers. They have, no doubt, already assessed it's business value and are aware of any consequences in enacting it. By choosing to sell -- and buy -- here on Fiverr, we agree to the Fiverr TOS, no matter what fees they choose to assess.







The main concern is that there was no warning about it.

#15

Reply to @jonbaas: You are right…HENCE…the market will speak for or against the fee. We shall see.


#16

Reply to @ryangillam:

I know. Technically, though, they don’t have to give any warning if they don’t want to – especially as this affects new buyers, not existing sellers. It would have been nice for some of us, yes, but, not required.


#17

Reply to @jonbaas: You’re absolutely right - and if I didn’t like it I wouldn’t still be here. Having said that, Fiverr wouldn’t have a site without its buyers and sellers. I have an interest in making sure visitors keep coming to the site and buying my stuff. To that end, I feel like the way this change has been implemented won’t feel great for people who visit and buy on the site for the first time.


#18
jonbaas said:
  • I know. Technically, though, they don't have to give any warning if they don't want to -- especially as this affects new buyers, not existing sellers. It would have been nice for some of us, yes, but, not required.







It impacts sellers too.

#19

I don’t think this will bode well with new customers. Not to mention, if a buyer wants their money back, they can’t withdraw it back into their PayPal account because any refunded money gets automatically turned into Fiverr credits. So, they make money no matter what. I wish I could go to the event in London. I would love to ask them a few questions. And ask them if we could get the time for our money to be processed reduced to just one week if your level two and even shorter for members with top rated seller status. I think that would give more incentive for sellers to provide top quality service. These are just my thoughts on the matter.


#20

WILL THEY TAKE THE PROCESSING FEE FROM THE SELLER IF REFUNDING A BUYER PER MUTUAL CANCELLATION.



If a buyer orders a gig but it has to be cancelled (i.e. buyer did not follow gig instructions), will fiverr deduct the processing fee from the seller when they refund the buyer? I bet they do.



If they start taking money from sellers when refunding buyers, than Fiverr needs to make sure that there is a OPTIONAL BUTTON FOR ‘CONTACTING THE SELLERS’ FOR EACH GIG BEFORE A BUYER CAN PURCHASE.



Even though I have it posted in gig instructions to contact me before ordering, every day I get buyers ordering my gig without contacting me first and I have to cancel because they did not follow gig instructions or they ask for something I can’t do.



Come on Fiverr, come clean and let us know what’s going on!!!