Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu Nov 17 2016 21:13:59

Tradesy Gives Sellers 2-Week Notice of Fee Hike

By: Ina Steiner

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It's a bad week for some niche online sellers. First eBay revealed it's set to hike fees on its Half.com marketplace (books, DVDs,...), giving sellers only 4 weeks to prepare for some very significant increases - right at the busy holiday shopping season. 

Later in the day, fashion sellers received the news that Tradesy is raising its commission fees as well. Unlike eBay, it gave some explanation of why it was making the move. But it only gave sellers 2 weeks notice.

If you're not familiar with Tradesy, it is a self-described "buy-and-sell marketplace for fashion, built by and for women. Millions of stylish members use Tradesy to sell straight from their closets, and to save up to 90% on pre-owned bags, shoes, clothing, and more, from top designers."

The commission fees are going from 9% to 14.9%, a 66% increase.

Tradesy explained, 

Starting on December 1, 2016, Tradesy's commission rate will be adjusted to 14.9%. For sellers who choose to withdraw funds from their account, our low 2.9% safe transfer fee will not increase.

This change will support the development of new and exciting benefits to help you sell faster than ever, like:

- Tradesy-funded advertising to promote your listings across the Internet
- Improved search and filters to let more buyers find your closet
- Upgrades to make listing even faster on iOS and Android apps
- Closet and listing analytics with tips to maximize your sales

The higher Tradesy fees take effect on December 1, 2016. Thanks to the tipsters for today's scoops.




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Readers Comments

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

This user has validated their user name. by: iheartjacksparrow

Thu Nov 17 21:29:12 2016

Are we experiencing a Blood Moon? (American Horror Story fans will understand.) First, Half.com raises their fees by 10%, and then Tradesy raises their fees by whopping 66%? I have a feeling a lot of sellers from both sites will be looking for new venues to sell on.  

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by: aim04744 This user has validated their user name.

Thu Nov 17 21:48:41 2016

That 14.9% does not include the 2.9% money transfer fee.

I sell on Tradesy and have loved it, but I am not sure it worth that much in commission.

It is comparing itself to Poshmark, The Realreal and consignment shops. Problem is that Poshmark's fees include shipping costs the seller doesnt have to pay. Tradesy is not in the same league as Therealreal and cant not even be compared to consignment shops because it is a completely different kind of business.

Time will tell but so far I am hearing sellers will stop listing there.

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

This user has validated their user name. by: Ina

Thu Nov 17 22:10:27 2016

Thanks for the added context!

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

by: Chicago48 This user has validated their user name.

Thu Nov 17 22:22:20 2016

I have a feeling a lot of sellers from both sites will be looking for new venues to sell on.  
^^
Where can sellers go?  I get most of my sales from Ebay, then Tradesy, and then AMZ.
I get the feeling this is like a virus -- it's spreading.

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This user has validated their user name. by: iheartjacksparrow

Thu Nov 17 23:23:48 2016

@Chicago48 - I keep recommending eCrater to everyone who asks for another place to sell.  

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

This user has validated their user name. by: tanzi

Fri Nov 18 01:58:58 2016

I sell on Tradesy also. It used to be very good, then they changed the platform even before this latest change, only they never told anyone. This time however, i will leave. After the first change, sales just dropped and never returned to what they were before....and, yes the 2.9% transfer fee on top of the 14.9% I doubt many sellers will stay there......@Jacksparrow, i have had items up on eCrater for the past few years, and I have only had 2 sales.  

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

by: Chicago48 This user has validated their user name.

Fri Nov 18 06:11:19 2016

I keep recommending eCrater to everyone who asks for another place to sell.  

^^
The worst selling platform in the world, besides Bonanza.

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

This user has validated their user name. by: Rexford

Fri Nov 18 06:44:52 2016

Chicago48, I don't know what you are selling on eCrater but that is simply not true.  eCrater is awesome. No listing fees and very low commission fees. Best of all they let me run my business and there is zero interference.

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

by: epuise This user has validated their user name.

Fri Nov 18 09:38:25 2016

Let the gouging begin... HAPPY HOLIDAYS !

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

This user has validated their user name. by: iheartjacksparrow

Fri Nov 18 10:50:57 2016

@Chicago48 - I'm quite amazed by your statement that eCrater is the worst selling platform. I'd be interested to hear what you sell, and what you've experienced to make you feel that way. I continue to make sales there (mailed eight items yesterday, two are going out today) and I don't have anyone telling me how to run my business.

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

by: Terry in Texas This user has validated their user name.

Fri Nov 18 16:52:02 2016

I have some listings on Tradesy but haven't sold much the past year. Those fees are too high--unless i raise my selling prices. Not worth it. I've moved both clothing and collectibles over to ToucanDeal.com. good site so far. no sales but no listing fees and the templates are easy to update/edit. Decent import from ebay listings. Great seller support. it's a much easier site to navigate/list on than Vangoe. And i seem to get a lot of views. more than ebay anyway.

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

by: DingDong This user has validated their user name.

Fri Nov 18 19:41:21 2016

Wow, what is going on with all these fee increases. Once it gets to 10%, I am done. What I sell on eBay, I base it on 15% fees for ebay/paypal. And that 10% on ebay is too much for no visibility and the hoops they like you to jump.

I love eCrater. I have 2 shops there and they are gaining ground.
I also love Tictail. This place is gaining ground, too. They started a marketplace that you pay 10% fees and the views are not that bad. If I bring in the buyers, it is FREE.

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

This user has validated their user name. by: Bob

Fri Nov 18 22:20:48 2016

Bonanza only exist because they encourage their Sellers to buy from other Sellers, and they apparently do.
There are virtually NO new buyers going there.  Bonanza should roll over and die.

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

by: Tiffee Jasso This user has validated their user name.

Sat Nov 19 06:58:53 2016

I like Bonanza. I can post my items and never have to edit them or relist them again. If I have a problem they are right there to help me. Are my sales great? No, but they are improving. I also buy my books and beads there.  

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

by: BargainzBabylon This user has validated their user name.

Sat Nov 19 23:49:30 2016

It should be remembered that Tradesy handles returns, not we sellers. I think that's worth something. I also tend to sell stuff there at least 5% higher than the other site - to me the increase is handle-able IF they continue to process returns.  

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

by: Barbbie This user has validated their user name.

Mon Nov 21 09:36:41 2016

If you want to sell on Bonanza, just do not sign on for the Turbo ads or the higher memberships. This is a scam, your sales will die completely. You will get NO exposure at all and the previous immediate email support will not even bother to answer your emails about it, at all, crickets.

I signed up for the 50.00 membership, I was selling about 2 or 3 items per day, my sales tapered off during the next month until I was not even getting enough sales to cover the monthly fee. I looked at the turbo ads, which were supposed to be running at least 7 days a month, there were none, apparently not even regular sales, I was doing literally 1 or 2 sales a month. I contacted them, no answer, several times, no answer. Posted on a board that there was a problem (which I am now strangely unable to post on any board there); I was told on the board by one of the ''owners'', sorry, they would look into it and fix it. Never happened. After about 7 months, I dropped it back down to regular, sales picked up to about 30 a month now.  If you sign up just do the regular, do not pay for extra features, you will not get it. I was paying them in fees about 300 a month, they knowingly threw it away to take 50.00 from me for nothing, not a good business plan and no one cared.

On the other hand, they have a good sync with ebay and they usually answer refund requests or other issues right away politely.
 

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by: IntegrityMatters This user has validated their user name.

Mon Nov 21 12:56:07 2016

I really appreciate the coverage of the Tradesy commission hike. I have been a Tradesy seller since 2013 and this commission increase announcement could not have come at a worse time.

Please allow me to explain . . .

There's even more bad news for for online sellers, Ina et al: Please check into what is going on at Etsy, where I have had a shop since early 2015 and have been very successful, until now. Since late October, if you check the Etsy Forums, you will see that hundreds of well established shops are seeing losses of 80-90 percent, and not just sales, but views and ''favourites,'' too. No word from Etsy, on this, of course. Turns out that a company that uses the word ''transparency'' in the first line of their mission statement is anything but.

As a seller on Threadflip for a few years, I watched as that company made these same types of poor decisions when it came to their bread and butter sellers, and look what happened to Threadflip? It is now defunct -- Threadflop. I tried to discuss repeated poor decisions with management there, but all fell on deaf ears.

I have been closely analyzing e-commerce sites that sell fashion since 2012, and I have to say that, though we think of NYC, Milan and Paris, when it comes to fashion, we have to keep in mind   that the basis of these companies is strictly Silicon Valley and tech. And from what I have had to live through via all of these companies' whims that are never announced to their sellers, and that can make you lose hundreds to thousands in sales with the flip of a switch, tech companies definitely lack compassion and are clueless when it comes to understanding how one's actions can negatively (or positively) affect thousands. Very heartless. One might say sociopathic, even, which is the subject of many popular books on the topic of who is running most corporations in the US.

Anyway, I just wanted to be sure that you are aware of what is happening at Etsy. Please add them to the list.

I am so depressed about all of this that I am barely functioning. And that they all did this at the beginning of the holidays, which is the time for the highest sales volume for most of us, is plain cruel. I would not be surprised if some suicides result from all of this. Many on the Etsy Forums are talking about how they no longer have their day jobs and now have nothing, nada, no income. Suicide statistics are already higher around the holidays. This is certainly not helping.

Peace!

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

by: kerm53 This user has validated their user name.

Fri Nov 25 21:27:08 2016

I was also shocked at the 66% commission hike. I have not read it anywhere on the web, on Tradesy site nor did i receive any announcement from them via text nor email BUT they are also taking commission on shipping. So I sold something tonight for $150.00 including shipping they took the 9% out of the $150.00. I had charged 12.00 to ship and 138.00 for the item. Up until today (for me anyway)they had always taken their commission on the 138.00. So cost me $12.00 to ship and I don't even get the full amount. It's costing me another approximately $1.20 (out of my pocket) to ship and in 4 more days that goes up. If I stay I will have to raise prices. Has anyone else seen this happen to them? Very unhappy. :^(

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

by: triciasquilts&boutique This user has validated their user name.
Web Site

Fri May 5 16:10:06 2017

Hey what 2 week notice??  I rec'd it last night late and trying to figure out what to do.  My employees are listing now.  Most of my items are under $15-20, so I'm losing money at the point.  If I stay on Tradesy, I might have to pass some of it on to the customer.  And I hate that because I'm giving them quality items for a low price.  I don't mind a hike in fees, but 66% is outrageous.  I'm going to check out some other resale places, but my problem is that I have all of my clothing in an actual retail secondhand store, so I can't send it off to be sold.

Perminate Link for Tradesy Gives Sellers 2-Week Notice of Fee Hike   Tradesy Gives Sellers 2-Week Notice of Fee Hike

by: 41kare This user has validated their user name.
Web Site

Thu Oct 5 15:03:24 2017

I closed my Tradesy account several weeks ahead of the newest change.

I was unable to automatically close online;I had to wait for a Tradesy rep to email me.

They can do a lot of things; however holding my money for up to 21 days was the final straw for me. If I successfully complete a transaction,you have no right to withhold my payment for up to 21 days.

Using my float? pay me:-)

Close your accounts f you are happy with Tradesy-its like a magazine subscription. Do you want to be further manipulated  by Tradesy because they use you to increase their numbers
They made money off of me. I owe them nothing



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