Should fiverr take 20% from a Seller's tip?


#1

I have heard many experienced sellers say bad things about fiverr like how the 20% fiverr fee is high but I don’t agree with them.I think 20% is a reasonable fee after all this is their platform and fiverr has a very dedicated team who make sure that funds get securely transferred and all other things that makes me and other experienced sellers feel secure.

But I noticed that fiverr takes 20% fee from a tip that a buyer leaves to a seller and I think fiverr ahouldn’t charge a fee over a tip because of many reasons.
I would like to hear what other sellers/buyers or people representing fiverr think about it


#2

I don’t like it either. Tip = give (someone) a sum of money as a reward for a service. For me it’s unreasonable to collect more fees out of seller’s tips, it’s basically stealing off people’s reward for doing great jobs. But nonetheless, it’s Fiver’s decision to still take a sum of our tips…so we can’t help but to abide the rules :zipper_mouth_face:


#3

Yes exactly,a tip should only concern a buyer and a seller.Fiverr shouldn’t grab any share from our hard earned tips.That is exactly what I (as a seller) think.
But,yes we can atleast raise our voices for what we feel is the right thing.


#4

Yeah, I too believe that commissions on tips shouldn’t be collected by Fiverr, as the nature of word ‘tip’ pretty much explains why.


#5

Just thinking of this myself yesterday. It’s truly not a good practice.


#6

EVERY marketplace HAVE OWN RULES,SO DON’T WORRY ABOUT THAT. IT IS FIVERR OWN RULES AND REGULATION. FIVERR IS BEST.


#7

This has been discussed a lot. If they don’t collect 20% from the tip, people will try to circumvent it by encouraging buyers to place smaller orders and pay them mostly via tips. It’ll get messy real quick.


#8

@somaginer1996
oh yes that is bad for business,I mean for fiverr.

But I still hold my ground because I feel that this is just not right for obvious reasons.
Maybe fiverr can figure out this unusual business that you mentioned.After all, how hard would it be to spot a person who is receiving more tips then direct earnings from orders.Every order on fiverr has a unique number so that will definitely help speed things up, if we assume that fiverr develops a system to monitor orders on a daily basis.
I don’t know,I am just floating an idea in hopes that someone from fiverr team will read it and tweak things up,for the better of us all.


#9

Yes, on principal it is gross and awful for them to take 20% on a tip. However they do it to prevent abuse of the system. They are likely worried that sellers will convince their buyers to pay for the bulk of their services through tips so they don’t have to pay a fee and Fiverr would lose out on revenue.

That being said, I’ve always thought that 20% is an extremely high commission regardless. After all, they take a processing fee on each order to offset costs of doing payments, but they are certainly still making money off it. I think 15% is more than sufficient for a commission off sellers’ work, and sellers wouldn’t feel so stiffed. Either that or they scale it like Upwork does. (After you earn a certain amount it would be less commission to fiverr)

And as a side note, Amazon doesn’t charge processing fees for payments, nor does any other major retailer… so what makes buying gigs on Fiverr so special? Really can’t figure that out.


#10

Fiverr charges commission on tips to make sure there is no abuse of the system. Abuse could prevent Fiverr from utilizing funds to make the site better. See:

http://forum.fiverr.com/t/why-does-fiverr-charge-20-commission-on-tips