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Why fiverr charge 20% to the sellers but less to buyer?


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Why fiverr charge 20% to the sellers but less to buyer?

As far as I understand yes Fiverr giving us platform to sell service that also giving buyers a platform to buy

service so both party should pay the same service fee.

 

Edited by hasan0001
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  • hasan0001 changed the title to Why fiverr charge 20% to the sellers but less to buyer?
17 minutes ago, hasan0001 said:

As far as I understand yes Fiverr giving us platform to sell service that also giving buyers a platform to buy

service so both party should pay the same service fee.

So, if you are going to the market to buy household items, would it be okay for you if one shopkeeper charges you an extra 20% in the name of rent (for his personal shop) just because you're using his services? Won't you move to another shop that doesn't charges you money?

Yes, Fiverr takes a small amount from buyers, but not for their pockets -- it’s for credit card charges and maintaining the payment gateways. How is it fair to charge buyers another 20%? 

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1 minute ago, rawque_gulia said:

So, if you are going to the market to buy household items, would it be okay for you if one shopkeeper charges you an extra 20% in the name of rent (for his personal shop) just because you're using his services? Won't you move to another shop that doesn't charges you money?

Yes, Fiverr takes a small amount from buyers, but not for their pockets -- it’s for credit card charges and maintaining the payment gateways. How is it fair to charge buyers another 20%? 

 

Technically, buyers already pay a surcharge of 20%.
Because most sellers account for the commission deductions when they price their services.

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I have been reflecting on my experience working with Fiverr over an extended period. I find the 20% fee quite reasonable.

Fiverr diligently identifies the most skilled workers for buyers, so it's fair for both parties to pay the same amount of fee to use their service. 

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26 minutes ago, hasan0001 said:

I have been reflecting on my experience working with Fiverr over an extended period. I find the 20% fee quite reasonable.

Fiverr diligently identifies the most skilled workers for buyers, so it's fair for both parties to pay the same amount of fee to use their service. 

On the contrary.....I think, a buyer should not be charged at all!!!!!

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45 minutes ago, hasan0001 said:

I have been reflecting on my experience working with Fiverr over an extended period. I find the 20% fee quite reasonable.

Fiverr diligently identifies the most skilled workers for buyers, so it's fair for both parties to pay the same amount of fee to use their service. 

 

You're right. Fiverr being a neutral middleman for all the transactions is a huge plus. It gives everyone peace of mind when hiring freelancers. That’s really the main draw of the platform (imo). It’s super easy to use and safe, so they don’t have to worry about getting scammed or harassed conducting their business online. Even though it might seem fair to charge them the same, it’s just not the best business move for both Fiverr and the sellers here.

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1 hour ago, creative_howl said:

Technically, buyers already pay a surcharge of 20%.
Because most sellers account for the commission deductions when they price their services.

Well, that's another story and differs from person to person. That cost is not standardized, so can not include that! 

Personally, I NEVER do that as I think it's against morals. Also, this is against the Terms of Service and comes under "misleading pricing" and can put the account at risk -- unless it's communicated with the buyers with full transparency that they are being charged 20% extra (than what's stated in the gig). Also, the question arises: why would buyers pay extra and accept your offer? So, maybe there are sellers who are putting hidden costs, but that's not fair, to be honest.

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2 hours ago, hasan0001 said:

Why fiverr charge 20% to the sellers but less to buyer?

As far as I understand yes Fiverr giving us platform to sell service that also giving buyers a platform to buy

service so both party should pay the same service fee.

 

You need to understand the business models (around the world) better. Platforms earn their commissions and run their business by charging commissions from the SELLERS always!!

Why should a buyer/customer pay extra?? 

If you buy something from Amazon - What if they charge you 20% extra for using their platform for purchase because they are charging the seller also 20%?? Would you be OK with that?? 

Edited by priyank_mod
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On 6/30/2024 at 12:15 PM, rawque_gulia said:

Well, that's another story and differs from person to person. That cost is not standardized, so can not include that! 

Personally, I NEVER do that as I think it's against morals. Also, this is against the Terms of Service and comes under "misleading pricing" and can put the account at risk -- unless it's communicated with the buyers with full transparency that they are being charged 20% extra (than what's stated in the gig). Also, the question arises: why would buyers pay extra and accept your offer? So, maybe there are sellers who are putting hidden costs, but that's not fair, to be honest.

Can you link to the source regarding "misleading pricing" in TOS that puts seller accounts at risk? I have looked all over the community and help pages, but couldn't find this. Maybe I'm missing something here?

This is what we have regarding pricing in terms of service: Source

image.png.1f0a91ace66737df454c7e5aa20d6aae.png

Hope you know that making claims regarding the platform without valid source material goes against forum rules: https://community.fiverr.com/forum_rules/ 

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1 hour ago, creative_howl said:

Hope you know that making claims regarding the platform without valid source material goes against forum rules: https://community.fiverr.com/forum_rules/

New in the town or wot?

image.png.a49f835c43c12108042ad38d02539a92.png

1 hour ago, creative_howl said:

Can you link to the source regarding "misleading pricing" in TOS that puts seller accounts at risk?

First, read the TOS yourself -- "Section 4.2 Gigs" -- "Gigs misleading to buyers or others".

And there is a world outside 'Fiverr Forums.' On many occasions, Fiverr has sent warnings to users when buyers reported their profiles for misleading pricing. Surf Reddit, Quora, and even Fiverr forums, and you will know.

If anything in your gig is misleading (be it pricing packages, description, title, FAQ, keywords, etc.), you're one step away from any random buyer reporting your profile and then getting a warning on your profile.

Even forget the TOS -- it's very basic common sense not to "mislead" buyers in any way. Not sure why it's hard for your brain from understanding this basic point.

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1 minute ago, rawque_gulia said:

New in the town or wot?

image.png.a49f835c43c12108042ad38d02539a92.png

First, read the TOS yourself -- "Section 4.2 Gigs" -- "Gigs misleading to buyers or others".

And there is a world outside 'Fiverr Forums.' On many occasions, Fiverr has sent warnings to users when buyers reported their profiles for misleading pricing. Surf Reddit, Quora, and even Fiverr forums, and you will know.

If anything in your gig is misleading (be it pricing packages, description, title, FAQ, keywords, etc.), you're one step away from any random buyer reporting your profile and then getting a warning on your profile.

Even forget the TOS -- it's very basic common sense not to "mislead" buyers in any way. Not sure why it's hard for your brain from understanding this basic point.

 

Quote

image.png.1e0c264699610ac03456ce0230370d57.png

 

Is this what you're talking about? How did you come to the conclusion that this has anything to do with gig pricing?

Also, how could pricing be misleading?

The guy on Reddit is a voice-over artist talking about a dispute he had with Fiverr regarding his packages where his clients had to pay extra for commercial rights to be able to use the material that they already paid for. This is at least understandable since anyone who buys a voice-over would intend to use it therefore it only makes sense for him to include that within the gig package itself.

Accounting for expenses when pricing your service is a basic business practice. Who'd want to spend all day working on something and earn less money than what the work is worth? It has nothing to do with morals. Thats why it's It's mentioned in terms of service as "Sellers determine their Gig pricing, AT THEIR SOLE DISCRETION". 

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Posted (edited)
6 minutes ago, creative_howl said:

Is this what you're talking about? How did you come to the conclusion that this has anything to do with gig pricing?

Anything that is misleading is against the TOS, full stop.

6 minutes ago, creative_howl said:

The guy on Reddit is a voice-over artist talking about a dispute he had with Fiverr regarding his packages where his clients had to pay extra for commercial rights to be able to use the material that they already paid for. This is at least understandable since anyone who buys a voice-over would intend to use it therefore it only makes sense for him to include that within the gig package itself.

Asking "extra" is totally fine, however, mentioning in gig tiers that you charge $10 for commercial rights and then sending a custom offer for $50 is misleading. I hope you understand the difference between "asking extra for extra work" and "asking extra for the same work with ill intensions."

6 minutes ago, creative_howl said:

"Sellers determine their Gig pricing, AT THEIR SOLE DISCRETION". 

Yes, sellers can price their gigs at their sole discretion, but charging extra than what they stated in their packages with greed and ill intention is misleading.

Edited by rawque_gulia
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4 minutes ago, rawque_gulia said:

Anything that is misleading is against the TOS, full stop.

Asking "extra" is totally fine, however, mentioning in gig tiers that you charge $10 for commercial rights and then sending a custom offer for $50 is misleading. I hope you understand the difference between "asking extra for extra work" and "asking extra for the same work with ill intensions."

Yes, sellers can price their gigs at their sole discretion, but charging extra than what they stated in their packages with greed and ill intention is misleading.

 

This is gonna end up where we start hyper-analyzing the definition of the word "misleading" till one gives up. I have other things to do, so let's just stop. You do you!

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12 minutes ago, creative_howl said:

This is gonna end up where we start hyper-analyzing the definition of the word "misleading" till one gives up. I have other things to do, so let's just stop. You do you!

I don't know why you're not able to understand such a basic thing, but anyway, I understand that everyone's way of processing things is different.

I just wrote a ticket to customer support regarding this and received clarification that it's indeed against the TOS.

Source: Customer Support

 

image.png.d9976879f7f9d69fc8127e263c8aea93.png

image.png.92e12beb4d7210c04de08c2e8ec6d806.png

 

"Any kind of misleading" -- So, i hope that you won't come back saying....hey, it's not including pricing lol.

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3 minutes ago, rawque_gulia said:

I don't know why you're not able to understand such a basic thing, but anyway, I understand that everyone's way of processing things is different.

I just wrote a ticket to customer support regarding this and received clarification that it's indeed against the TOS.

Source: Customer Support

 

image.png.d9976879f7f9d69fc8127e263c8aea93.png

image.png.92e12beb4d7210c04de08c2e8ec6d806.png

 

"Any kind of misleading" -- So, i hope that you won't come back saying....hey, it's not including pricing lol.

 

Huh? 

This is not even the discussion we were having here. The conversation about there's nothing wrong with accounting for the commission deductions when we price our gigs. Which is not against TOS.

You seriously gotta stop. Consider me "educated" now.

 

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Posted (edited)

I'm not sure I understand the discussion here. Of course buyers are paying the 20% fee, not sellers. Buyers put in 100% of the money. Sellers price according to what they want to make after the 20% deduction. So yes, if Fiverr charged 0% commission, sellers could drop their prices accordingly and keep making the exact same they're making now.

Just as an example, my desired hourly rate is $100. Therefore, I price my hours on Fiverr at $125, as that's what's needed to make $100. If a buyer just happens to find me walking down the street and wants to do business directly with me, and pay me in straight cash, it will be $100 instead - because that client cost me $0 to acquire.

On the other hand, if I get my clients through, say, facebook ads, and it costs me $30 for each $100 I make, I'll have to price my hour even higher than I do on Fiverr.

There's nothing misleading about this, it's how math works. The cheaper a client is for me to get, the less I can charge them. On Fiverr, clients cost me 20% of the order value to get. There are cheaper ways to get clients, and more expensive ways to get clients, and my final price will be adjusted accordingly - I need to make the same net amount at the end.

Edited by visualstudios
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