Fiverr Forum

Processing Fee Increase


#1

I guess I missed the announcement about the processing fee increase from $0.50 to $1.00. This pretty much means that transactions are $6 per gig now, unless the buyer uses money that’s already in their Fiverr account.


#2

I don’t know for sure if anything official was released, but staff did post a reply.


#3

Only the update to Fiverr’s Terms of Service. There was no official announcement as far as I know.


#4

Not to be “that guy,” but I wonder if this has something to do with the recent slump in sales. Maybe no one else is noticing this, but over the past two weeks, I’ve seen a steep decline in my sales that’s kinda starting to worry me.


#5

I posted the below on a different chain before I read yours. I don’t think Fiverr should charge us buyers a $1.00 fee every time we give our sellers a tip for good work.

Well, here is the ranting I posted:

I just came back to Fiverr after being away. I noticed that every time I tip my sellers for doing an exceptional job - I have to also tip Fiverr (20% fee or $1.00).

I don’t understand this, why does Fiverr get a tip because my seller’s did a great job in editing, proofing, book cover design, etc.?

I like to hire a bunch of new sellers - give them all the same thing to see what sort of great end product I get. You’d be amazed at how many new sellers do top of the line, exceptional work!! I save them as my favorite and tip them (& apparently, Fiverr) for excellent work.

I’m getting back into swing of things and looking at hiring at least 20 up to 30 or more a month. If I were tip each of them that’s minimum additional $20.00/$30.00. For me, every penny counts and I had not budget $240.00 - $360.00 for fees to Fiverr for the next 12 months.

For my sellers, YES!! They do great work for a measly $4.00 & I want to tip them.

Just ranting!!


#6

The standard line here is that not having a fee for tips would lead to a loophole in which sellers and buyers would circumvent the usual fee system and therefore cheat Fiverr of its commission.

Which is pretty fair, really. There’s also the processing payment thing by which you get charged $1 or whatever whenever you add new funds. You could argue that being allowed to deposit, say $500 (or whatever) a month into your buyer account and get one fee to cover that then spend at your discretion would be a neat secondary option, but…

…$$$$$$$$$$$$$$$$$!


#7

How do I deposit money into my buyer account? I am intrigued?! Please keep in mind, I am not a seller, only a buyer.


#8

The whole fee on tip thing on Fiverr is still puzzling to me. I mean when I tip the delivery driver of any pizza/other places, they don’t charge me a 20% fee. I can’t think of a restaurant anywhere that charges me, again, a fee of $1.00 to the owner if I want to tip the waiter/waitress.

I’m curious, what would some of you do if the restaurant owner told you, “Sir (or Ma’am), I can not allow you to tip the wait staff unless you give me a $1.00. That is mandatory, if you do NOT give me the $1.00 fee, you can’t give them a tip.” — (Yeah, sounds ridiculous, but if you think about it, that’s what is being done here.)


#9

You can’t. If you sell you can use your earned money to buy gigs though (I think–I’ve never purchased anything here).


#10

I’ve noticed that. The only buyers I get now are repeat buyers.


#11

What’s worse is Fiverr takes 20% of that tip from the seller. So if you tip a seller $5 then they are getting $4.


#12

I’ve definitely seen a huge slump. I get maybe 1 or two inquiries a week now, and only repeat customers and BR.
What’s irksome is that the most common gigs (I assume) are $5 gigs and they are the heaviest hit.

Also, Fiverr gets a fee from both buyer and seller – sellers give up 20% while buyers pay 10% or something on processing fees. I know this is a business, but hitting both sides is a little too heavy handed, I think.


#13

That’s right. Only money you’ve made as a seller can be deposited into your account for purchases.


#14

Same. Or I have to work really, really hard to get new buyers to place even a $5 order.


#15

I have had an increase in TARGETED sales on a lot of my gigs, but my writing gig has been pretty dead in the water for a while now. Part of the issue may be that some of the black-hat shady SEO marketers are getting into the content writing niche’. Take a look around. Anyone with over 50+ orders in queue on a daily basis is either heavily marketing themselves or isn’t getting orders through any ethical means. One in fact has 80+ orders in queue right now(and in the feedback, there is a lot of reviews saying they basically rip content off online and re-word it.) so it always makes me wonder.


#16

It’s because people would abuse it otherwise to avoid paying transaction fees. Wouldn’t blame Fiverr on that, but rather the people that would exploit it.


#17

Still way more reasonable than advertising myself. Cost’s me nothing to get clients on Fiverr and I have had both small and large ones. If I would have paid for advertising I would have spent potentially hundreds or even thousands of dollars to market and that ad spending may have been lost in the void.

It would have been nice though to perhaps actually mention it somewhere a bit more public.


#18

Depends on how you do it. On my own i spend way less than 20% on advertising, website fees, fraud prevention etc.
The key is to aim for big jobs so that you only need to advertise 1 to 2 times per year between gigs.


#19

What type of services do you usually offer?


#20

Why don’t buyers get a refund of the processing fee when the seller is the one who cancels? I ordered a gig yesterday and when I came back today, found there was a message that customer service had cancelled the gig and my fiverr account had been refunded. But the processing fee wasn’t refunded. I did nothing wrong, why should I be charged a processing fee due to an irresponsible seller’s decision?