Home design marketplace Houzz has gotten creative with seller fees. The site notified sellers it will begin charging them "non-compliance" fees beginning next month.
A seller on Houzz forwarded the notification and asked, "Have you heard of a venue doing this before?"
According to the chart provided to sellers, Houzz will begin charging sellers non-compliance fees such as $25/order for any orders cancelled due to failure to ship, and $15/order for an order that was cancelled due to "out of stock." The new fees go into effect beginning April 3rd.
The seller also had other concerns, stating they felt Houzz offered no seller protections "and always seem to take the side of a buyer." It can take up to two months for the marketplace to approve a listing, the seller said, and "their coding is unable to weed out fraud addresses at check-out not matching zip codes etc."
In our last post, we noted some of the ways eBay has gotten creative with fees in its User Agreement. How do you feel about these types of fees?
Update 3/30/18: The Houzz seller forwarded us the company update:
Non-Compliance Fees Update
Based on your feedback and enhancements to our process, we are updating our non-compliance standards. As a result, the new fees will NOT go into effect on April 3rd, as we previously communicated. We will reach out with an update on the process and the new timing in the coming weeks.
The fees will continue to populate on the Charges page of your dashboard with an asterisk. This way, you can see which orders would have incurred a fee and continue to make improvements to your fulfillment process to prevent future charges. If you see any fees that are inaccurate, please notify Seller Support.
We appreciate your feedback! Our goal is to minimize issues during the fulfillment process to ensure Houzz provides the best-in-class shopping experience.