Why does fiverr take a commission on shipping? That’s ridiculous? They don’t ship anything, I understand paying them 20 percent from profit for hosting the gigs and providing a marketplace, but I’m losing money on shipping! It costs me 8 dollars to ship anything so then fiverr takes some and I’ve ended up making a loss.
Fiverr does not take any money for shipping from the seller. The cost is transferred directly to the buyer. If you charge $4 shipping, the buyer is charged $5 shipping so Fiverr still technically gets 20%. Your shipping cost is really 80% of what the buyer is charged.
I’m guessing that you have not actually had this happen yet.
Let me explain. If it wasn’t treated the same, some sellers would try to cheat the system by encouraging people to buy a gig they want from another gig they “don’t”.
And, of course, if you have a merchant account and someone charges a purchase with you, they pay the same merchant fees for shipping prices. So this is regular and ordinary. It is only Fiverr’s percentage that may seem high.