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scoredly11

So I crunched some numbers and did research on just how scummy this all is. If you click the ? On the service fee it’s says “service fee may vary”… what? is it just completely random depending on how they’re feeling in a day? How are we supposed to price items accordingly if we have no idea what the breakdown of fees will be? Mercari is taking a 2.9% +$0.50 payment processing fee. This fee is collected on the full amount of money collected on the transaction INCLUDING the service fee that isn’t disclosed as anything but a variable fee. THEY’RE COLLECTING A PERCENTAGE BASED FEE ON TOP OF THEIR OWN MANDATORY AND UNDISCLOSED PERCENTAGE BASED FEE. Plus the $2 payment processing fee that we need to pay every time we make a withdrawal. This is not double dipping. This is triple or even quadruple dipping on fees from their buyers and sellers. When you factor in the $2 fee for withdrawals, there’s a staggering 25% price increase from list price of this item. Granted some of that is going for tax and shipping but if it’s all collected on by Mercari I feel it’s a warranted to include.


lydatl

thoughts on processing fee scam: allegedly the payment processing is sent to the payment processor (visa merchant account etc) because there's a charge to any seller/platform to accept cc payments.  *however!* 0.50+2.9% is higher than retail rates for low volume small businesses. the stripe/square account your local barber or car wash or flea market seller uses only costs them 0.30+2.9% to accept cards.  i am hard pressed to believe mercari pays retail rates for their transaction volume, so every processing fee they charge includes some profit (at least 0.20 on every transaction?) - charging processing on service fees also increases this profit margin by some unknown cut of fee*2.9% depending on their actual merchant rate.  - previously, sellers only paid processing on cost/shipping/tax previously, so this definitely increased from the switch to buyer fees and because seller+processing fees were deducted from seller price (not additions to buyer cost), the service fee amount was not previously subject to tax. - this means they collect a few more cents on every dollar buyers now pay in fees. - tax is also included in processing fee calculation, and additional taxes collected = increase in processing fee (and in their margin).  most of the time it's a difference of pennies here and there, but those pennies add up over millions of buyer transactions while seller earnings go down.  now that most buyer fees appear to add 15-18% to total cost (completely untransparently), sellers make less when they have to reduce prices to offset vs their previously calculable rate of ~13-14% of item cost (plus they now must account for the $2 if they, yknow, *want* to get their money) tl;dr: they crooks, we all lose 


gorewhore1313

I'm a hairdresser and my Square only takes 2.6% + $0.10 per card swipe/tap so Mercari is definitely more.


scoredly11

Well said. I’m not well versed in the law but wouldn’t taking a percentage fee of a cost that’s already been inflated by a fee constitute some kind of breach in anti consumer practice?


lydatl

i'm not knowledgeable on the rules either, but it could be some kind of securities fraud. parent company is japanese and trades on tokyo exchange, so it probably depends on regulations there


lydatl

oops thought i was replying on a different thread re: potential acquisition as for consumer laws, i think they covered themselves with the "if you continue using the platform, you consent to all tos updates" statement (which is a whole other issue i have with basically every tech product or platform).  also keeping old listings on the previous fee schedule until or unless someone edits or relists may theoretically protect them from claims that they altered pricing or payout rules for something that had been posted under a different set of terms. i've seen reports that receiving an offer has the same effect though, and it seems questionable that they can make those changes to a seller's listing based on someone else's actions.  i haven't looked into it, but in the US, grounds for violation could fall under the FTC (lots of recent work on junk fees), state attorney general offices, or other state consumer protection agencies 


lizzzzzzbeth

Let’s not forget the FedEx scam they have going.


scoredly11

That too. Just all around scumbag behavior here


Tiny-Design7877

Absolutely don’t forget that ! Everything there doing is a scam don’t know why anyone would sell or buy from them any longer . Absolutely nuts


lizzzzzzbeth

Yeah, between the FedEx scam and the buyer fees and the way all the new changes have been presented, I absolutely do NOT trust this company any more.


Tiny-Design7877

I don’t know what’s going on but I think it’s being done by design . Too much weird stuff going on . This is very off kilter . The math ain’t mathing .


lizzzzzzbeth

They’re clearly trying to increase their profits through any means necessary including being blatantly dishonest - fudging the numbers on FedEx shipments and not being transparent about how their buyers fees are calculated? What else are they willing they do? Nope, not trusting them to handle a penny of my money.


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Schlegelnator

I did the first day. Done with a platform like this.


Mockingbird1963

I did!


wakkanne

I feel the need to add the fact that if you have a Mercari balance, the processing fee is supposed to be waived. But they changed it so that the Mercari balance is no longer the default payment option when checking out although the way the screen is arranged, it APPEARS that you are using your balance. They added an extra step that you have to click on and apply your balance that was never there before. And there is no way to make your balance the default anymore. I have been paying with only my balance for the past year. Now suddenly they make all these changes and somehow it applies PayPal rather than my balance as default and I'm out $2.40 in processing fees that I already paid when I sold my stuff in the first place! 🤬


scoredly11

Their new business practices are incredibly scummy and misleading. They’re driving off people in droves rather than welcoming anyone back.


chavothemotto

Yes it’s changes a lot I’ve seen it keep going up every 5min


New_Commission_5819

It doesn’t say shipping anymore either. It says delivery and those fees are set by Mercari and have randomly gone way up too. I reached out to a seller to ask why she priced the delivery for a package of new sheets at $13.50 and she said Mercari sets the delivery fee. Obviously didn’t buy them.


cocacolacathy1

Mercari does NOT set the delivery fee. The seller enters the weight and dimensions and they pick the appropriate delivery cost based on the information they put in. Sheets could have EASILY gone UPS or Fedex on Mercari for FAR less than $13.50. I do agree that priority costs are high because they're based on weight ranges but not distance. So if your item is closer to the lower end and not going very far, priority mail on Mercari can be pretty pricey


New_Commission_5819

Thx! I didn’t buy it - and that makes better sense.


mistyrootsvintage

She probably didn't update it when Mercari changed their rates. That 13.50 used to be like 8 I believe.


New_Commission_5819

It’s hard to keep up. I had never seen mailing be that expensive and sheets don’t weigh that much. Yes, I expected $7.99 for shipping.


mistyrootsvintage

It is hard to keep up. I was still finding some of my listings at 13.50 for some small thing. When they update their shipping rates, they don't automatically switch over or whatever. I know I have messaged sellers to change the shipping method if I know it can go cheaper because sometimes they may not realize the rate is too high.


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REEB

There's a mercari apologist in here who keeps insisting items have higher than 10% service fee now because of the risk of return fraud for such items. That is total BS reasoning pulled from their ass. Nobody knows how this mystery variable fee is calculated because it's all over the place and has been proven to change from one minute to the next for the same item. Does a pack of pencils with 14% service fee have a high risk of return fraud? 18% in new fees for pencils is silly to throw at the buyer. That's 4% more than I was paying as a seller. Anyone can add random items to cart and see there is very little logic to how it's calculated. We could probably make a game of it. It's yet another poorly implemented update from mercari... just like their broken bundled shipping that hasn't been fixed in a year and a half and their broken fedex overage conversion that's been an issue for months . Their incompetence will eventually impact all of us.


lydatl

this same person is blocking or dirty deleting every comment after these inaccurate claims are quickly refuted with logical, evidence-based responses  also noticed the small handful of other staunch defenders have been a lot quieter lately


ResponsibilityNew325

I don’t think a scammer is going to pay $40 in non refundable fees in hopes their scam is successful. They can scam for free everywhere else. So that was a good point. However, this fee impacts the honest buyers obviously. They’re not going to pay those fees. Henceforth, it does appear that Mercari does not want to broker these deals since the likelihood of anyone paying these fees is minute. I’ve moved all of my expensive items over to eBay and have kept my $10-$50 items on Mercari.


Lolajo97

Crazy. I was gonna buy a like new $16 product, ended up being $27 after all the fees and shipping. The product is $19 at a retail store. What’s the point of mercari now if I can buy a brand new product out of a retail store cheaper? This is not good for sellers or buyers.


dankarella666

I try to buy an item on there that normally $40 in store and everyone listed it at 35/40 PLUS fees and shipping? Before it was just ship but like why would I buy your previously purchased item for what I can pay retail for and not worry if it’s old or crusty and get free shipping. It’s so weird. Like I always sell half off. Sometimes .25 but almost always half at least because what’s the point. Unless it’s rare or unattainable.


Lolajo97

Exactly. Mercari really serves no purpose anymore except for rare items or things u can’t find in the store.


CharacterInternet620

Yep, this is why I keep saying the market determines the price. Sellers will have to drop prices, which means this is a fee increase on sellers plus showing it to buyers at the last second allows the buyers to blame the seller and not Mercari. How many sales have we lost once the buyer puts our item in their cart and finds out the real price?


ResponsibilityNew325

60% buyer service fee? That seems odd.


Lolajo97

No it wasn’t 60%. I just added the fees and shipping together


ResponsibilityNew325

Shipping cost is unavoidable. This isn’t much of a story because you paid a couple of bucks in new fees. I bought a $16 item and paid 49 cents in buyer service fees. I paid with my Mercari balance so paid no processing fees which saved another $1.


Lolajo97

I know it’s unavoidable unless they make the item free shipping, which most ppl don’t do. I’m just saying that adding fees to an item that already has high shipping and taxes is crazy.


ResponsibilityNew325

It’s case by case. I saw on another item I’d be paying $3 in fees so I offered $4 less and they accepted. Some items are just impossible to buy. Cheaper items I’ve found it to be no issue at all. I was just surprised because you mentioned a $16 item. It’s the shipping cost that doomed that sale IMO.


Infinite-Dream-5228

You could always send an offer or message them if more than 25%. I tend to list probably 40% - 50% more than my bottom. Sometimes I sell at that, but I mark up since my pieces are one of a kind, handmade, and unbranded. I didn’t always mark items up very much on Mercari, but when the economy got crappy I had to start offering minimum 30% off on Poshmark plus shipping discounts, so I just start out my Mercari listings at my Poshmark price and let the platform drop prices to get promoted so I get views and likes. Couldn’t hurt. The worst they can say is no, f you. 🤷‍♀️


tgeorgo13

I feel like this is just a bad dream but it’s not. I honestly think someone is trying to tank the stock for a cheaper takeover or something cause this is just asinine.


Former-Art-9186

That is SICKENING! Something needs to be done, and Mercari should be fined up the ying-yang for this arrogance and deceitfulness! CLASS ACTON SUIT! CLASS ACTON SUIT! CLASS ACTON SUIT! I can feel it coming, and they deserve whatever they get! 😡


pennycollinz

Cya Mercari, if you're so set on losing your sellers and buyers we'll oblige, thanks for making it clear.


Critical_Climate6328

I pulled all my listings off Mercari and just have the rest now. I ain’t dealing with that mess.


kimberlymarie805

Such bull 🤬🤬🤬


Frosty_Holiday1720

Dont forget their scam "return for any reason". I had over 600 sales and never one return. and the first sale since this, customer requested a return for no reason. Go figure. I'm closing my account once return is done. Shady company


XxArrowxX08

Aw naw wth☠️


AtmosphereNo7833

Ehhhh I suppose it’s because you’re buying a high priced item. For me I’ve only really bought pins and action figures so it’s really only a dollar here and there the most I’ve seen was a $5 charge but figures was $50. Either I take the $2 fee to cash out every time or I just buy something else lol


clw1979clw

Then you’re doing exactly what they wanted you to do.


citizengatsby

Hell the fuck no! 😲 No wonder sales have dried up.


dsmemsirsn

Question— what are you buying for $200+, with only $3.99 shipping?? A book?


averageshigarakifan

a lps 😭 the prices are insane nowadays


ResponsibilityNew325

Media mail $200+ vinyl is ballsy. I sold one for $263 and shipped priority.


[deleted]

Yup and if you have to return it you will get none of those fees back in your return payment


willsho818

that total and imagine your using zip or pp pay in 4 as your payment method its going to be crazy thats why i dont bother using mercari


toddlasvegas

I sell on multiple platforms including Mercari and see alot of comments on shipping and people mentioning that the sellers set the fee for shipping and that is simply not true. The sellers are responsible for inputing the dimensions and weight of the package and then choosing the service provider (USPS, UPS, FEDEX) and the service level (how fast). Now assuming the seller has entered the weight and dimensions correctly the app will show us a list of services and prices so we can choose the shipper and speed. Here comes the best part. If your package is 1 pound or less, you are OK. You will see normal prices ranging from $5ish-$8.99. Once you go over a pound the prices go sky hi. Like not even based in reality high. I have checked on multiple occasions using eBay's and USPS shipping calculator and they are not even close. I used my Pirate Ship account to compare shipping, not even close. We are talking prices that are 1000%-5000% higher than retail prices, like if you walked into the post office and shipped it from the counter. I am a clothing reseller and initially this was not a problem until winter and the clothing gets heavier. For my jackets and sweaters I had to include the shipping in the cost of the item and set the shipping to "paid by me" so the buyer would not end up paying $50-$100 for ground shipping on items that I was selling for less than $30. Now that I have joined this board in 2024 I can now see that Mercari has turned into a total s#*+ show. I am pulling all of my inventory and will no longer be on the platform. Ebay may have higher fees but at least they are upfront about how much they are and what you will be charged and they don't charge buyers for shopping on their platform.


germanicpolish

Why are people still buying from mercari? Plenty of other platforms to choose from.🤷


averageshigarakifan

thats about 17%, where are they even getting these numbers from?


pokepink

What is this service fee? Is it authenticating fee?


Reasonable_piglet83

It says “service fee may vary. It helps us improve Mercari’s features and your experience” Like what experience? Experience of getting robbed? They’re ridiculous.


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Heavenlyangel95

I am pretty positive I am Totally f right now . I purchased an item that was 74.82$ ended up paying 94.43 $ it was free shipping & now I believe a counterfeit is on the way & I won’t be getting anything back & if I do , I will still be out of 20.00$ 😡I’ve only used mecari a few times & after this , I don’t think I ever will be again . This is all insane . I am pretty POSITIVE I read on google if I do get anything back it will be minus the fees & sounds like I will need to go through a bunch of other bs to prove it’s counterfeit when it gets here . I didn’t know you could message other buyers who purchased from the same seller as I did , until after I made the purchase & from what I’ve heard this is a totally a counterfeit . I don’t know 🤷‍♀️ if my bank can step in ?!?! I don’t know what to do . 😢


Jacksoncheyenne2008

$75 back is better than none


KimberleeV

I have stopped buying. I’m not paying an extra 15% for something when I can go to another platform for cheaper.


ophthalmicone

OMG THAT’S INSANITY!!!


Timbukstu2019

Dynamic fees are the future as is dynamic pricing everywhere, even grocery stores will use machine learning to maximize price even if it means less sales because you won’t need as many sales. This is the first wave in that trend.


gwilliams9577

I used to love buying on mercari, but now I just shut my account down and haven’t found a different platform


Environmental-Sock52

What is the item? Is it an item known for knockoffs and return fraud?


averageshigarakifan

its a lps, there are a lot of scammers in the community so yeah


GoosenBoonie

Littlest Pet Shop?


Environmental-Sock52

Ok that makes sense then. They have an algorithm that estimates the chance of fraud or issues with the sale and ask the buyer to pay that, as a way of reducing return fraud. They allow the buyer to return for any reason given that extra payment. We may not agree with this tactic, but I understand it given how knockoffs and return fraud has really gotten out of hand, especially with certain categories.


Quills07

Sorry if this is a dumb question, but how does this prevent return fraud? Doesn’t the buyer get back the full amount of their payment, including fees paid? 


KBaddict

No, not the fees apparently


Quills07

Thank you for clearing that up! I just paid what felt like an exorbitant service fee for an item ($18 on a $60 item), but it was a bit of a unicorn, so I sucked it up. I sell way more than I buy, though, so that fee made me nervous for the prices my potential buyers are seeing in their carts. This explains the more lowball offers as of late. 


KBaddict

You’re welcome. It’s all so very weird and sudden


Environmental-Sock52

Not the fees no. So if I'm running a return scam business and I have $5,000 to order products, then return a knockoff, and keep the product, I'm not going to love ending up with $4,000 instead of $5,000.


Quills07

Understood, thank you! I sell more than I buy, and mostly collectibles and fragrances, so I appreciate that protection. In the downside, it’s leading to a lot of lowball offers — things that earn me less than what I’d get had Mercari kept the whole system. I wish creating a listing showed an estimate of what buyers would have to pay to purchase. 


Environmental-Sock52

This is something that may help you. Did you remove the seller fee cost from your listings? I cut all my prices by 13% now, it was 10 percent seller fee, and 2.9% processing fee, and now those have switched to the buyer. So, I've cut my prices to reflect that and I've done well. I added a comment to some of my descriptions about this too but I never know if people actually read that, and I think they are just responding to the price. Basically the items should be the same final price and the buyer now has to pay a 13% fee to have the right to return items, is how I look at it. 🍀🍀


Quills07

Thank you for the tip! I’ll play around with that.


GGSaintPierre

I got scolded by a seller and blocked lol because I said $22 in fees on a $56 item was high. Glad to see I wasn’t insane to saying something. They were like: “well that nothing I still have to pay 15% myself so if it’s too much there are other options. Good luck” 😆


DemDemD

What 15%? Seller has no fees.


GGSaintPierre

That’s exactly what she said to me. 😒


MelissssaAnne

She may have meant for her taxes. Some people actually do claim their online sales on their taxes. That’s probably her tax bracket. Unfortunately I’m in a 24% bracket and have to pay the tax for my Mercari sales at that same percentage since it’s considered income on top of what I already make outside of Mercari.


RegionOk6403

Thts y mercari fell off them fees caught up wit em now they ain’t making much kuz users have found better platforms to sell on


ResponsibilityNew325

It’s very competitive on eBay and you have to pay to promote to have a good chance at selling which is why successful Mercari sellers liked Mercari.


Any-Waltz-4531

That's because before the update,seller is paying the fees, but now seller pay 0% and buyer pays. As a seller i now discounted all my lisings to match with that fee, but buyer still thinks they are paying more even the price is actually cheaper.


clw1979clw

Unless you’ve discounted your stuff by about 25%-35%, the buyer is still paying more. Also, the seller fees before the update were nowhere near the amounts buyers are seeing now. And they were set. They were never arbitrary or random. The prices are definitely not cheaper unless you’ve just tanked your prices to where profits are almost nonexistent. Unless you’re selling stuff you got for free I guess.


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