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EcommerceBytes-NewsFlash, Number 2570 - June 22, 2011 - ISSN 1539-5065    1 of 5

Bonanza Announces New Flat-Rate Commission Fees

By Ina Steiner
June 22, 2011

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Bonanza is changing its fee structure, charging a flat 3.5% commission with a minimum fee of 50 cents on each item sold. The fee drops to 1.5% for any amount in excess of $500. Sellers will continue to be able to list items at no charge.

Currently sellers pay a set dollar amount in commission depending on the selling price, ranging from 50 cents for items with a selling price of less than $10, all the way up to $10 for items with a selling price of $1,000 or more. (All prices are based on the "Final Offer Value," which includes any shipping that exceeds $10. In other words, if shipping is less than $10, then it doesn't factor into fees.)

Examples of Bonanza's New Fees Compared to Current Fees

Selling Price
(and any shipping amount over $10)

Current Fee New Fee


50 cents 50 cents


$1 50 cents


$1 88 cents


$1 $1.72


$3 $1.75


$3 $2.63


$3 $3.47


$5 $3.50


$5 $17.50

Here's what Bonanza told users in a blog post announcing the new fees "How does 3.5% compare to our current tiered flat fees? Well, it depends on the price of your item and where it "sits" in the price tier. For some items it will be slightly less and for others more, but on the whole, we chose 3.5% largely because it matched up very closely to what our existing fees averaged out to."

Bonanza said it was making the change to simplify its cost structure and to be lock in fees through at least the end of 2012.

The new fees will take effect on July 1st for new merchants and September 1st for existing merchants.

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

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