Mercari’s New Fee Structure: What It Means for You
Neek Zanfack
Mercari is rolling out a new fee structure starting January 6, 2025, that affects both buyers and sellers. The changes aim to balance the platform's benefits with its costs, addressing feedback about the current system. In this post, we'll break down the updates, provide real-world examples to show their impact, and share tips to adapt your business strategy as a reseller.
What's Changing?
For Sellers:
- Flat 10% Selling Fee: Applies to the item price and buyer-paid shipping.
- Free Direct Deposits: ACH deposits are free unless rejected, in which case a $2 fee applies. Sellers can make one free withdrawal per day.
For Buyers:
- 3.6% Buyer Protection Fee: Applies to the item price and buyer-paid shipping.
- No Payment Processing Fee: Simplifying the checkout process.
- Buyer Protection Features: Covers cancellations, refunds, eligible returns, and provides 24/7 support.
Real-World Examples of the New Fee Structure
Let's analyze how the new fee structure impacts sellers at different price points:
Example 1: A $20 Item with Buyer-Paid Shipping
- Item Sold For: $20
- Shipping Fee Charged to Buyer: $5
- Total Order Amount: $20 (sale price) + $5 (shipping) = $25
Fee Calculation:
- Old Structure: Previously, sellers didn't pay fees on shipping, only item price. Exact previous fee details were not publicly disclosed by Mercari.
- New Structure:
- Selling Fee: 10% of $25 = $2.50
- Earnings: $20 - $2.50 = $17.50
Example 2: A $50 Item with Free Shipping (Seller Covers Shipping)
- Item Sold For: $50
- Seller Shipping Cost: $7
- Total Order Amount: $50 (sale price)
Fee Calculation:
- New Structure:
- Selling Fee: 10% of $50 = $5
- Earnings: $50 - $5 (fee) - $7 (shipping) = $38
Impact on Buyers and What It Means for Sellers
Under the new fee structure, buyers will now pay a 3.6% Buyer Protection fee on the total order, including item price and shipping. While this fee simplifies buyer costs by eliminating the separate payment processing fee, it slightly increases the total amount buyers pay.
What this means for sellers:
- Buyers May Be Price-Sensitive: With the additional fee, buyers might be more cautious about spending, especially on higher-priced or less essential items.
- Adjust Pricing to Stay Competitive: To encourage sales, sellers might consider pricing items slightly lower to offset the increased cost to buyers. This could help maintain strong sales volume despite the buyer fee.
Example Impact on Buyers:
| Item Price | Shipping | Old Buyer Costs (Item + Shipping + Payment Fee 2.9%) | New Buyer Costs (Item + Shipping + Buyer Fee 3.6%) | Difference |
|---|---|---|---|---|
| $20 | $5 | $25 + $0.73 = $25.73 | $25 + $0.90 = $25.90 | +$0.17 |
| $50 | $10 | $60 + $1.74 = $61.74 | $60 + $2.16 = $62.16 | +$0.42 |
How Sellers Can Adapt to the New Structure
- Incorporate Shipping Costs into Pricing: Consider offering "free shipping" by building shipping costs into your item price. This can attract more buyers without significantly impacting your total earnings.
- Focus on Higher-Priced Items: With a flat percentage fee, higher-priced items offer better margins. Prioritize and highlight premium products in your listings to maximize profitability.
- Encourage Bundles: Increase the average order value by offering bundle discounts. Consolidated orders help distribute shipping costs and make the 10% fee more manageable.
- Price Strategically: Adjust prices to maintain competitiveness while accounting for the selling fee. Regularly review similar listings on Mercari to stay aligned with market trends.
- Communicate Value to Buyers: Highlight the benefits of Mercari Buyer Protection in your listings, such as trusted transactions and 24/7 support. This helps justify the buyer fee and can encourage sales.
The new fee structure will apply to new and updated listings starting on January 6, 2025. It may take up to one week to reflect automatically across all existing listings. Mercari will launch a bulk price edit tool this month to help sellers adjust their pricing. For more information, see FAQs here.
Reeva Makes Fee Management Easier
Mercari’s new fee structure may slightly reduce seller earnings, but with the right pricing strategies and focus on higher-value sales, you can continue to succeed.
Navigating new fee structures can be a challenge, but with Reeva, you don’t have to worry. Our platform calculates all fees for you so you can keep your listings competitive across marketplaces like Mercari and others. We take care of the complexities so you can focus on growing your reselling business.
Ready to simplify reselling? Get started with Reeva today.
