Fiverr Community Forum

Thoughts on Processing fee and no decrease in commission

I have never really minded the 20% commission fee as we do enough business to make up for it. However this new “processing fee” has me very upset. I was informed by a buyer today about it and the first thing that came to mind was that Fiverr is getting very greedy. 20% of my sales is a lot…considering we are nothing on par with someone like Kymmypops who’s commission being taken is 4x as much then ours as far as scale…but now Fiverr feels the need to be greedy and take more more from buyers yet NOT decrease the commission fee from 20% to 15% at least??? I would love to hear thoughts on this because this is very unsettling. I’m sure if a few choice sellers decided to bring their services elsewhere Fiverr may rethink the 20% commission.

Provoiceworks, I saw your response in the “other” thread. (I wrote ALOT over there…)



I can’t blame Fiverr for wanting to maximize it’s own profits, like any business naturally would.



I do see them, though, possibly slowly walking up additional fees/charges above and beyond the commission, over time.



Comments from other posters (in that other thread) reflect that, even at a .50 cent processing fee, it is still a HUGE bagain for buyers…in comparison to other platforms, they say, which can charge up to 20x more.



Following that logic, in that context, anywhere from $1 to $5 or more would still be acceptable as a fee.



Knowing that, I don’t think it would a long shot to see fees increase, over time.



I guess its the nature of business.



…on a side note, I do think the .50 cent processing fee may or may not have a big impact depending on the NATURE of the gig. It is more absorbable and understandable, to those who are buying service-type gigs that may not have any shipping charge.



For those who need to have a shipping charge–like my gigs–I have a gut feeling that seeing a 2nd fee, after the shipping charge, is being a formidable death blow to people’s willingness to go through the entire purchasing process. For those more tangible items, I do think that the impacts will/have been higher.



Thoughts?

I agree with it being nature of the business and I also agree that it is logical to expect more/increased fees in the future. There are other “replica” sites that operate just like fiverr but I have noticed one or two of those sites DECREASE the commission amount as the seller “levels up”. I feel the same type of process should happen here. From a seller perspective and a buyer perspective I am not happy. I agree with you too on the shipping charge. It may not seem like a lot of money but as a buyer when I keep seeing fees popping up for this and that it is a big turn off. Regardless of the bargain pricing I am getting. I don’t think this will benefit Fiverr for too long before they start to see the negative end of the decision.

Decreasing the commission, with increased levels, does make logical sense as it would seem to reward those who have documented, proven, history of success in selling. The only thing I see, however, is that that arrangement would seem to be a bit at odds with Fiverr’s own internal/manual selection of Top Rated Sellers. It seems Fiverr would have to knowingly lessen their commission earned, on a certain seller, whenever they select them as a top rated seller.



It seems that that could cause them to not select so many TRS, or, possibly, even revert some of them back to lower ranks (I don’t know…is that even possible?..once you achieve a certain rank, do you remain that rank forever?)



It makes sense to incentivize everyone that way…but, there doesn’t seem to be much outcry for something like that, at least right now.



There also doesn’t seem to be much outcry over the processing fee.



Sure, I see some people who don’t like it…but, I also see a few people proclaim the HUGE value that is still being had, in comparison to other platforms.



I would like to see what those same people say if the processing fee (or other fees) slowly gets walked up to $1 or more.