Mercari is eliminating selling fees immediately, even as the costs of selling on other marketplaces continue to rise, but there are some caveats for sellers. The marketplace is introducing buyer fees, and it's instituting a very buyer-friendly returns policy, explaining in an announcement going out today:
"In addition to zero selling fees, Mercari is simplifying the buying experience with an all-new returns policy. As part of this policy shift, buyers will be charged a service fee allowing for hassle-free returns. For the first time ever, Mercari shoppers can now initiate a return within three days for any reason with the assurance of a refund, less applicable fees."
Mercari said the removal of selling fees will enable sellers to price their items more competitively and take home more of their earnings, while the introduction of its new returns policy for buyers enables them to shop with confidence.
Previously, sellers paid a 10% commission plus a 2.9% plus 50 cents payment-processing fees. To be clear,
under the new no-selling fees policy, sellers won't have to pay the commission. Sellers won't have to pay the payment-processing fees either - buyers will. There are no changes to shipping options and policies.
Mercari US CEO John Lagerling said in Wednesday's announcement, "We expect this new business model to give us an even greater lead in offering the best inventory to shoppers across the country, particularly in the most exciting categories that Mercari users have come to recognize us for."
One reader said hypothetical buying fees on eBay would send people to Amazon "even more often than they're doing already."
Another reader said buyer fees might work on high value collectibles where they're already accustomed to buyer premiums at auctions, but would be a dealbreaker for buyers of low-priced collectibles.
The big difference between the hypothetical scenario we posed in Sunday's blog post and Mercari's announcement today is that buyers are getting something in return for paying fees - a no-risk chance to back out of a sale within 3 days - something sellers might not be too keen on.
The new service fee for buyers is not optional and will be applied to all sales at checkout.
- 0% Selling Fees: The selling fee for new listings will be 0%. That's right - what used to be a 10% selling fee is now 0% - zero selling fees!
- Listings created before 8:30 AM ET March 27, 2024 will be subject to a selling fee of 10% of the item price when a sale is completed, unless the listing has been updated on or after March 27, 2024.
- Buy with Confidence: Buyers will now be able to return items for any reason.
- Service Fee: When you make a purchase, a service fee will be charged. The amount of the fee will be displayed as part of the final price of your item(s) on the checkout page.
- Payment Processing and Withdrawal Fee: For listings created after 8:30 AM ET on March 27, 2024, Mercari will charge buyers a payment processing fee at the time of purchase. That includes a payment processing fee of $.50, plus 2.9% of the transaction price (includes item price, shipping, service fee, and sales tax).
- For listings created before March 27, 2024, a payment processing fee of 2.9% plus $.50 per sale is charged to the seller based on the completed sale, plus shipping price of the item - unless the listing is updated after March 27, 2024.
- Zero payment processing fees for buyers when using your balance.
- Direct Deposit: As always, you can request to cash out your balance to your checking account with direct deposit. Starting on this date, there is a $2 flat fee per cash-out.
Let us know what you think of the new marketplace model and who else is likely to adopt it.
The AuctionBytes Blog has been giving a voice to online merchants since its launch in 2005. Named one of the world's top 30 blogs in 2008 by "Blogging Heroes." Weigh in with your thoughts on the joys and pitfalls of selling online.
Mercari Eliminates Selling Fees as It Adds Buyer Fees