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Seller Paradise


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Hey, I am new here on fiverr but that doesn’t mean I am new in the job
outsourcing business.
I was surprised when sellers where charging me 20% as fiverr charges
on top of the cost for their gig.
Why Should collection of the 20% fiverr commision be the duty of the seller
should that be Fiverr’s responsibility and should be done during check out
or when placing the order ?
Why do buyers have to shoulder a whooping 20% while sellers shoulder Zilch, nada ?
Excuse me, maybe I am mistaken but this together with other aspects have left me
with the impression that Fiverr is a paradise for sellers rather than buyers.
Strange that buyers are at the receiving end.
Well, this is just the observation of a newbie buyer.

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I’m not even sure what you mean, exactly. Did a seller actually state that they charged 20% extra to make up for the commission or something?

You said you are surprised that sellers were charging you 20% as Fiverr charges. So, ordinarily, if you buy one $5 gig, Fiverr adds an extra $1 for a processing fee. The seller doesn’t get that. The seller doesn’t get the $5 you spend either. Fiverr gets 20% of that for commission. The seller ends up with $4 out a $5 gig and Fiverr gets $2. (The seller also has to pay for withdrawal of their funds to PayPay or elsewhere, so they actually get $3.xx.

How are sellers charging you an extra 20%? I am serious - I’d like to know if this is happening and how.

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Well , I didn’t order because the gig was about $600USD and 20% amounted to
$120USD and I had to decline due to the astronomical charge.
Maybe for gigs that cost less than $50USD , 20% does not seem to much but
for higher amounts one gets the feeling of paying a luxury tax.

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Well, the smart way to do this–which your seller obviously hasn’t done–is to build value into their pricing and not mention the fact that the extra $400 is covering their “loss”. Just don’t deal with sellers like this. I would never be this crass. It’s bad for business. My prices are fair, I pay my 20% happily, and you pay yours. This kind of negotiation style is just saying “you pay 40% of everything because we’re not making any money here”.

They may well see you as an easy mark. Just ignore and/or report them and move on to someone else. I do know some sellers on the forum–well, one–who pulls this strategy and I told him he was being silly, but he at least had a more effective argument than “we signed up for a service that gives us leads and now we’re crying about the costs of those leads”.

Just forget these sellers. Don’t even respond.

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This is all very stupid. Let’s say you are a corner shop selling Hershey bars. For every bar you buy from the wholesaler, you have to pay VAT. The customer then has to pay VAT when they buy it from you. And hell, before that, the manufacturer had to pay VAT on all the separate ingredients. In this case, what a scam. Why should you the poor customer have to pay the VAT on something which has already been paid at least twice already?

Your seller basically shouldn’t have told you about the 20% commission. Not to hide the fact, but simply because some people have a penchant for immediately feeling ripped off and like the whole world is out to get them when such words are mentioned.

As for Fiverr being all about sellers, try being one. It’s not all about polishing Lamborghinis, I assure you.

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So what I can see from this is the seller isn’t asking for 20% on top explicitly as you seem to be saying.

They’re telling you the gig price is $2000, then, admittedly, they’re confusing matters by letting you know Fiverr will take 20% of that. Presumably to make you realise how little they are actually earning.

This is no different than me telling you I will do your gig for $2000 full-stop. If they’d said that presumably you wouldn’t even be here?

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I think this is a Mélange of misunderstandings.

  1. A seller can charge whatever they like and the buyer can decide to pay that or not
  2. A seller’s perfectly entitled to charge a rate that gives them an end payment that they’re happy with, compensating for Fiverr’s fees. So if they want to end up with $5, they charge $6.25.

That said, I don’t see why a seller would want to list the 20% fee when in negotiation with a client. It’s obviously intended to confuse the buyer and send them away. I mean if they really wanted to do this they could go list all their deductibles like tax, and ACC (fellow kiwis will know what I mean). “Oh look at poor me. I’m going to spend an hour on your project that you paid $6 for but I won’t even get enough to pay for the coffee I drink while I work on your order”.

…wait, I think I just talked myself into a corner. I like coffee.

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I agree with that it´s confusing. But it´s quite simple too.
I offer a gig for 5$. The buyer pays 6$ to fiverr, I get 4$ from fiverr.
Maybe I´m lucky and can do the job in half an hour. Maybe I need 1 hour, maybe even 2, including conversations with the buyer on how they want things done, as they didn´t write it in the field of my gig requirements, including maybe conversations with the buyer, and CS, because the buyer can´t get their order active, as they didn´t attach their file or something but told me they did, 2 hours aren´t even unrealistic, all in all. For a 5$ (4$ in reality)-gig. That´s 2$/hour. And don´t forget some of us do declare their income to the friendly local tax guy/gal.

That said, I don´t add the % fiverr takes from me to my gig price. I´d rather do less words/take a higher price rightout, with no ‘hidden fees’.

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