Service Fee With Fiverr Balance?

[ninjanic]

Hey, am I seeing this right?

I have money in my Fiverr balance from selling. When I go browse to buy something, I see an additional $2? I think it used to be $1 for credit cards, but I didn’t think there was any fee for using your Fiverr balance. What’s going on?

Thanks,
Nic

[insects44]

The processing fee is now $2.00, a 100% increase. This is unsustainable. Fiverr, PLEASE, give me a way to deposit funds into my account to avoid this fee on each and every gig I buy and tip I give. I’m willing to pay a $2 fee on a $20 deposit, and then buy four gigs for $5 each… but I’m not willing to pay $2 for each gig I order. It absolutely does not cost you $2 to process a $5 payment AND THEN you take a cut from the seller also! That’s just outrageous.

$2.00 fee for purchasing. It’s a Fiverr fee, not a Credit Card fee.

END

[shovon44]

The processing fee is now $2.00, a 100% increase. This is unsustainable. Fiverr, PLEASE, give me a way to deposit funds into my account to avoid this fee on each and every gig I buy and tip I give. I’m willing to pay a $2 fee on a $20 deposit, and then buy four gigs for $5 each… but I’m not willing to pay $2 for each gig I order. It absolutely does not cost you $2 to process a $5 payment AND THEN you take a cut from the seller also! That’s just outrageous.

$2.00 fee for purchasing. It’s a Fiverr fee, not a Credit Card fee.

END

agreed with insects44… 2$ service charge is really huge for 5$ gig

[hanshuber16]

You need to go with the mindset that it is a $7 gig and not that you are paying $2 extra 😜 (it might help calm your nerves) cuz there is really nothing that can be done about it.

[ninjanic]

But that’s ridiculous! For something that should be worth $5, seller only makes $4 anyway. With a $2 fee that only goes to Fiverr, they take $3 of $7 spent, which is >40%! I still think this is some mistake. Especially with Fiverr credit. I checked my purchase history and every last purchase costed $5 exactly. No extra fees. I think this needs to be fixed ASAP or new buyers will be scared off.

[jonbaas]

But that’s ridiculous! For something that should be worth $5, seller only makes $4 anyway. With a $2 fee that only goes to Fiverr, they take $3 of $7 spent, which is >40%! I still think this is some mistake. Especially with Fiverr credit. I checked my purchase history and every last purchase costed $5 exactly. No extra fees. I think this needs to be fixed ASAP or new buyers will be scared off.

But that’s ridiculous! For something that should be worth $5, seller only makes $4 anyway. With a $2 fee that only goes to Fiverr, they take $3 of $7 spent

This is completely incorrect. The fee does NOT come out of the seller’s earnings. If a buyer places a $5 order, the seller keeps $4, and Fiverr keeps $1. The $2 fee is a separate element that is added on to every order.

In short, for a $5 order, the sellers keeps $4, and Fiverr keeps $1 + the $2 fee.

[ninjanic]

But that’s ridiculous! For something that should be worth $5, seller only makes $4 anyway. With a $2 fee that only goes to Fiverr, they take $3 of $7 spent

This is completely incorrect. The fee does NOT come out of the seller’s earnings. If a buyer places a $5 order, the seller keeps $4, and Fiverr keeps $1. The $2 fee is a separate element that is added on to every order.

In short, for a $5 order, the sellers keeps $4, and Fiverr keeps $1 + the $2 fee.

In short, for a $5 order, the sellers keeps $4, and Fiverr keeps $1 + the $2 fee.

Look closely; this is what I said.

seller only makes $4 anyway […] they [Fiverr] take $3 of $7 spent

[jonbaas]

In short, for a $5 order, the sellers keeps $4, and Fiverr keeps $1 + the $2 fee.

Look closely; this is what I said.

seller only makes $4 anyway […] they [Fiverr] take $3 of $7 spent

Keep in mind that that $2 fee applies to any orders under $40. Above $40, the fee is only 5% of the total sale. Fiverr can charge whatever fees they want to on their own website. If those fees start driving customers away, they’ll change them. But I’d guess that the fees are not driving any significant level of legitimate customers away. $2 is not an unfair fee.

It would seem too, that Fiverr is encouraging buyers to place higher-value orders. A $2 fee on a $5 order does seem steep. But, then again, a $2 fee on a $35 order isn’t unreasonable. Fiverr wants to promote the idea that sellers offer higher-value services, and they clearly want to shed the cheap “everything is $5” reputation.

[ninjanic]

Keep in mind that that $2 fee applies to any orders under $40. Above $40, the fee is only 5% of the total sale. Fiverr can charge whatever fees they want to on their own website. If those fees start driving customers away, they’ll change them. But I’d guess that the fees are not driving any significant level of legitimate customers away. $2 is not an unfair fee.

It would seem too, that Fiverr is encouraging buyers to place higher-value orders. A $2 fee on a $5 order does seem steep. But, then again, a $2 fee on a $35 order isn’t unreasonable. Fiverr wants to promote the idea that sellers offer higher-value services, and they clearly want to shed the cheap “everything is $5” reputation.

Fiverr can charge whatever fees they want to on their own website.

Yep. You’re right. There’s no arguing with the big guys.

they clearly want to shed the cheap “everything is $5” reputation

I liked that, it was unique with Fiverr. There are plenty of other freelancing websites which don’t have the focus of quick, small gigs. But yeah like I said, with thousands (or millions) of buyers and sellers, a few of them who want change (or don’t) cannot make any difference.

[lloydsolutions]

Service fees are added at the time of purchase where a buyer can review and accept the total amount requested to pay. These fees cover administrative fees. As of May 2018, the current fees assessed to the total purchase amount are $2 on purchases up to $40 and 5% on purchases above $40. When purchasing from your shopping balance (resulting from any credits or refunds) you will not be charged a service fee. Funds returned to your balance from cancelled orders will not include service fees paid.

This is from the updated Terms of Service which you will find at the bottom of the Fiverr main page.

[jonbaas]

Fiverr can charge whatever fees they want to on their own website.

Yep. You’re right. There’s no arguing with the big guys.

they clearly want to shed the cheap “everything is $5” reputation

I liked that, it was unique with Fiverr. There are plenty of other freelancing websites which don’t have the focus of quick, small gigs. But yeah like I said, with thousands (or millions) of buyers and sellers, a few of them who want change (or don’t) cannot make any difference.

I liked that, it was unique with Fiverr.

It was indeed. But Fiverr is growing up. They aren’t the small $5 gig startup anymore. They are becoming a global freelance services marketplace, and they need to adapt to the market. The “everything is $5” model just doesn’t work when they are a major player in the freelance market. You can’t run a profitable business when you’re just earning revenue at the $5 level.