Another Competitor Makes Some Big Changes

[my-cottage-books-and-antiques]

ebay competitor Mercari announced some big changes today. The best summary I've seen is here:

https://www.valueaddedresource.net/mercari-shifts-fees-buyers-returns-any-reason/

Will this impact ebay's strategy going forward, or will it have little or no effect? I don't know, but it will be interesting to see what the next ebay Seller Update contains....

[redlinear]

That "service fee" is going to upset a lot of buyers or potential buyers.

Looks like my electric bill 🤣

[masterblasterplanet]

Mercari sent out an email yesterday to their members about the new changes. Oddly enough they made NO MENTION of charging buyers a fee in their email. Seems like Mercari doesn't even think this is a good idea or they'd be transparent and up front about it. Here's what their email said about the new changes:

What does this mean for sellers:

1. No more 10% selling fee. See ya.
2. List it all – little stuff, big stuff…all without a selling fee. Use your balance, or cash out for just a $2 flat fee.

3. Keep more of your $$!

And, we've made some cool changes for buyers, too:

1. Buy with confidence. Return for any reason.

2. Experience a more streamlined return process, with free return shipping.

3. Enjoy zero payment processing fees when using your balance.

[tobaccocardyahoo]

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@oldwestgold wrote:

Most industry auction houses charge a buyer's fee and none to very little to the seller. I bid on many other auction forums and always pay a buyer's premium. 

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None to very little is not the way I would define 15% to 35% seller commissions.

And experienced consignors know that the buyers premium usually reduces the size of the high bid.

Last time I consigned or an auction, I received a 15% rate because I have had a history of doing business with the auctioneer. It has been years since auctioneers in my area have charged so low a rate.

IMO Mercari has made a major marketing mistake, and will probably not last the year selling in the US.

[barbie*ville]

Just made an $18.00 offer there--Service fee $1.08 Processing fee $1.20. I think that's a lot for an $18.00 item.

Didn't make a purchase.

[nickelsanddimes2015]

I don't understand this business plan with Mercari. Yes it's great for sellers however the additional fees for the buyer isn't going to go over very well and I believe that Mercari will do an about face fast. I sell on there regularly and even though it's only been 1 day Iv'e had 1 sale since.

I also looked up a few items to see what the fees are for buyers and it's actually shocking. The smaller amounts aren't too bad however the larger one's are ridiculous.

A sells for $25 the buyer will pay $38.10

$40 = 52.34

$75 = 98.25

$125 = 153.44

$150 = 182.28

$250 = 308.60

The breakdown

$250.00 + shipping fee $7.99 +Service fee $22.50 +Process Fee $9.18 = Tax $ 18.93 = 308.60

[nickelsanddimes2015]

It's more than that with the new service fee and payment fee

[tobaccocardyahoo]

After thinking about this for a day, the only strategic goal might be getting cross listers to add Mercari, and hope that the increase in listings will lead to an increase in sales, and the establishment of the site as a place that more buyers will consider shopping.

After all, if it costs nothing to list and you avoid a fvf when you sell, why not try it. Does not work for me, but I suspect that I am not their target.

[redlinear]

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@nickelsanddimes2015 wrote:

I don't understand this business plan with Mercari. Yes it's great for sellers however the additional fees for the buyer isn't going to go over very well and I believe that Mercari will do an about face fast. I sell on there regularly and even though it's only been 1 day Iv'e had 1 sale since.

I also looked up a few items to see what the fees are for buyers and it's actually shocking. The smaller amounts aren't too bad however the larger one's are ridiculous.

A sells for $25 the buyer will pay $38.10

$40 = 52.34

$75 = 98.25

$125 = 153.44

$150 = 182.28

$250 = 308.60

The breakdown

$250.00 + shipping fee $7.99 +Service fee $22.50 +Process Fee $9.18 = Tax $ 18.93 = 308.60

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To me, it appears they are trying to "fill the venue".  (assume things will change once the venue fills up).
Think about it like a shopping mall.  If you have a mall, 1st and foremost, you MUST have vendors (sellers).  Only then can you have shoppers/buyers. 
Buyers may not like certain things about this mall (costs)....but that's irrelevant if you don't have vendors.
SO, 1st things 1st, Get the vendors in there.
Then, you worry about getting buyers.  
    As of right now, it appears Mercari is counting on the vendors to lower their prices and do other things to entice buyers to come, and to keep buyers there (as I personally think it should be).  
  BUT, the Sticker Shock during checkout for buyers likely not something that can be overcome. 
So, I figure things will change once the venue is full(er)

[toomuchstuffagain35]

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@oldwestgold wrote:

Most industry auction houses charge a buyer's fee and none to very little to the seller. I bid on many other auction forums and always pay a buyer's premium. 

I would also agree that the length of time allowed for a return must be shortened. 30 days is far too long. even 15 days is a long period for someone to make up their mind on returning an item or not. What I have been finding lately is that people will wait until the last day and then file a return. I believe people get an unexpected bill or forget that they had their credit card coming due then file a return stating "changed mind". On top of that, eBay always allows the buyer too much time to return the item. Buyers should have the same amount of time to return it as the seller had to ship it. 

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Agreed. They file on the last of 30 days allowed and THEN ebay gives them another 3 weeks to return it!

[blacktopautoparts]

I don't mind returns as its part of selling. The big issue that I have is when you have customers selecting NOT AS DESCRIBED, WRONG ITEM SENT, or MISSING PARTS OR PIECES and then go ahead in the comments of the return (or even eBay messaging) admit it is their fault. It not only affects our service metrics, but then on top of it you get his with shipping costs both ways that makes you feel even worse due to the service metrics. eBay knows that this is a huge issue on the site, but they haven't done anything to get this fixed or come up with a better solution, but low and behold, they can come up with ways to double and triple down on the promoted listings.

[toomuchstuffagain35]

One thing that WILL happen (for any buyers that stick around after seeing the additional fees) will be even MORE haggling and low balling offers (which Mercari is already known for).

[masterblasterplanet]

Good point. My opinion is it's a conflict of interest for eBay. It's all about them making more money. If you take part in the eBay Top Rated Plus seller program (10% discount on FVF fees) and your seller metrics fall below a certain number or percentage, then eBay doesn't have to give you that discount which is great for them.

[valueaddedresource]

And....just got an email coupon offer for 10% off at Mercari so clearly things are going very well with this new fee structure. 🤣

[toomuchstuffagain35]

I wonder if sellers are still being hit with the selling fees even though the buyer's have paid them already?

[valueaddedresource]

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@toomuchstuffagain35 wrote:

I wonder if sellers are still being hit with the selling fees even though the buyer's have paid them already?

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@toomuchstuffagain35  according to Reddit that would be a big yes! Some say they have been told by customer support that they will be refunded but...Mercari has declined to comment on reports of double charging as of this morning. 🤷‍