Bonanza is adding a new 25-cent transaction fee for all sales at the end of August. Sellers can continue to post items to Bonanza for free – the new transaction fee will be assessed on completed sales. Sellers who have a membership subscription are exempt from paying the fee.
In a blog post announcement on Tuesday, the company cited inflation as a factor in its decision, noting it had not raised its fees since 2016. eBay and Etsy have both raised fees as recently as this year, though Bonanza didn’t mention the marketplaces by name:
“As sellers are well aware, marketplaces have continually raised their fees over the years. Bonanza has not made any changes to our fee structure since 2016, despite increasing inflation. As we evaluate the changes to the current economic market, we realize we need to make an adjustment to our pricing policy in order to counter the rise in operational costs. To minimize the impact on our selling community, Bonanza has made the decision to add a flat-rate transaction fee of 25¢ on all completed sales as of the end of August 2022.”
Sarah Tranum, General Manager of Bonanza, told EcommerceBytes that as a small business itself, Bonanza understands the impact that fee adjustments can have on the small businesses that sell on its platform. “That is why we are mindful to make this adjustment with the least impact possible,” she said.
“Sellers can still list items on Bonanza and our advertising partners risk-free, since no fees are assessed until after a sale is made,” she said. “We chose a small, flat-rate transaction fee over adding an insertion fee or increasing the final value fee percentages, which would have had a bigger impact on our sellers’ profit margins.”
Tranum said many sellers had already adjusted their prices to accommodate the rising fees on other platforms.
“We continue to offer our sellers ways for generating commission-free sales,” she said, pointing to the Bonanza Rewards tokens program.
“One of the rewards options is a credit to pay final value fees,” Tranum said. “There are multiple ways to earn tokens; it can be as simple as signing in and claiming the daily tokens each day, so I urge our sellers to make use of this benefit!”
“Sellers are aware that other marketplaces have continually raised their fees over the years,” and Tranum said sellers have told Bonanza they would understand the need to make the same business considerations that they themselves were making.
You can find the post on the Bonanza blog – the few comments that had been left soon after the posting went live indicates sellers may be resigned to rising costs. “Just don’t ever get rid of rewards tokens,” wrote one seller.