Sigh...Reverb increasing selling fees

[gr81dorn]

I literally saw a store a couple weeks ago with a big notice on their ad that said "go to our website and buy this without tax". To be fair, they were using Reverb's webstore e-comm/CMS, whichs is hugely popular and I assume they still get either the same or a lesser commission on each sale through that e-comm/CMS, but the fact that it's a direct sale to the store and they (at least for now) aren't on the hook for collecting tax, can be the difference between a sale and no sale, particularly on higher priced items.

[ericcsong]

a few people chatting about it here: https://www.acousticguitarforum.com/...d.php?t=586683

[mercy]

This is whats wrong with america, business waning more bottom line each year even though they are making a profit. In the old days they killed a person or persons for what they wanted now there is no murder but they do take advantage of people. I surely hope that Itsy decides to lower the fees once they experience the loss of sellers.

[Beakybird]

In the middle of the pandemic, this might put some mom and pop stores out of business.

[imus586]

I don't think many of us here were clamoring for more global advertising/market exposure for our instruments. All it offers to us is more expense for sellers and buyers (who are already smarting from the addition of the collection online sales tax).

Strange timing, and I think Reverb will take a little time to recover from some of the lost business caused by this move. That being said, Reverb is a very useful platform and will likely continue to grow in the future as people adjust to the new normal.

Don't forget eBay only charges 3.5% in their guitars and basses category (not vintage) so there's always that...

[gr81dorn]

Originally Posted by imus586

Don't forget eBay only charges 3.5% in their guitars and basses category (not vintage) so there's always that...

For now...pretty sure that is the rate they reduced it to when Reverb emerged and they were forced to compete at that rate.

As with a lot of competitive businesses...market leader sets a standard, the rest go "oh, the commission rate is 5% now, good...us too!"

[Rev Roy]

Originally Posted by Matts67

Just got an e-mail from Reverb stating that they are increasing their selling fees:

"Beginning on August 4, 2020, we are increasing our selling fee for the first time ever⁠— from 3.5 % to 5%."

So that equates to 7.7% total with their transaction processing fee, or 7.5% if you have a preferred account.

eBay is revamping their entire payment processing platform this year to get away from PayPal, so it will be interesting to see how this pans out for Reverb. I would think they'd like to keep fees low since they are now required to collect sales tax for most states. So now the buyers are getting shafted from one end, and the sellers from the other.

Yep, that was my first thought, too. It’s a one-two punch that makes Reverb far less friendly for buyers and sellers. Kind of a GAS killer for me...which may be the only good thing coming out of this mess.

[DavidE]

Originally Posted by gr81dorn

You forgot to mention this nugget "(the increase) will enable us to significantly grow our marketplace so that we can help you reach even more buyers all over the world"

Can I keep it at 3.5% cuz I wouldn't ever sell anything outside of the continental USA?

I am not surprised, but they will almost certainly alienate more retail stores...I've already seen many letting folks know to "call us for a better price", etc. They have less leverage on Reverb, but the exposure is second to none.

As for the average joes like most of us, we'll inevitable raise our prices a little to cover it more? or just sell for less?

Seriously. I won't ship outside of the US.

[mcduffnw]

Originally Posted by Matts67

Just got an e-mail from Reverb stating that they are increasing their selling fees:

"Beginning on August 4, 2020, we are increasing our selling fee for the first time ever⁠— from 3.5 % to 5%."

So that equates to 7.7% total with their transaction processing fee, or 7.5% if you have a preferred account.

eBay is revamping their entire payment processing platform this year to get away from PayPal, so it will be interesting to see how this pans out for Reverb. I would think they'd like to keep fees low since they are now required to collect sales tax for most states. So now the buyers are getting shafted from one end, and the sellers from the other.

FYI...and my two cents...

Paypal was severed from Ebay by Wall Street investors, including Carl Icahn for financial reasons...duh...sigh...money, the root of all evil.

Ebay fought that as long as they were able, but it was a losing battle from the get/go.

So having lost that very significant revenue stream, Ebay has come up with their "Managed Payments" system, as their replacement for Paypal, and is severing their service contract with Paypal as of Jan. 2021.

Us Ebay sellers ain't super happy about it...but...whatcha gonna do. Where else would we, do we, have the global reach...and by global, I really mean the ability to reach buyers instantly, on a daily basis, across the US to market our wares?

Surely you Reverb and Ebay guitar flippers...if you old enough, and been in the "game" long enough...remember the good old days of flipping where you had to place ad's in your local newspapers, and Nickel Ad's, and Craigslist...what a wonder that was when it came on the scene!!!...y'all 'member that right boyz...how amazing and handy that was...and/or you had to go to the "Used and Vintage Guitar Show Sale-n-Swap-athons. Remember the joy of all the tire kickers at those events, and the dealers who would tell you to go get a price from another dealer...when you wanted to sell a piece...and they ALL said that to you, as round and round you went all day.

What about consignment sales at dealers, where they want...heaven forbid...15%, 20%, 30 PERCENT to sell your guitar for you. Remember all the fussing about THOSE fees??? I mean gee...they only had to do all the work for you, take the pictures, do the soundclips or videos...if any...do the marketing in their store and on their website and other media platforms like Youtube and Instagram, handle the sale...think of the hand holding, and emails and phone calls and guys playing your guitar for an hour or two...yeppers...all that customer service fun and excitement...and the packing and shipping if needed...and BE ALL AROUND RESPONSIBLE for YOUR guitar...I'm talking "LEGAL liability" here kids...ponder that...yessiree...ALL of that, and they have the nerve to ask you for 20%!!!...THE NERVE!!!

So now you have these platforms...Ebay and Reverb most notably...where you have to do a bunch of the work...but they give you a global sales reach...either all of the US/North America...or even the whole "global" world, 24 hours a day...remember...it's always "five O' Clock somewhere"...to sell your goodies.

And so now your fussing about in increase of more or less 3% on Reverb...and likely probably Ebay soon?

Really boys...really? Where ya gonna go and reach all the folks you can, right now, 24 hours a day on Reverb and Ebay, and get the services and protections...not perfect by any means...believe me I know from 20 years on the 'bay...that you get for your soon to be 7.7%?

Oh how I WISH all the "fee for service" businesses I use...Doctors, Lawyers, Dentists, Plumbers, Electricians, Mechanics...etc...just charged me 7.7% for their help. When is the last time a retail or fee for service provider you used gave you...in effect...40% off MAP of their customary service/product costs...just for asking? Not counting guitar dealers...of course.

Sure I wish the folks I mentioned above cost me less than what they do...but they don't, and I can't do the stuff they can, so their expertise has value for me.

And Ebay and Reverbs "Reach"...that service that they really provide...certainly has value over the good ol' days of flipping on our own.

Probably, really, even 7.7% value {;-)


duff
Be A Player...Not A Polisher

[Blueser100]

Originally Posted by Matts67

Just got an e-mail from Reverb stating that they are increasing their selling fees:

"Beginning on August 4, 2020, we are increasing our selling fee for the first time ever⁠— from 3.5 % to 5%."

So that equates to 7.7% total with their transaction processing fee, or 7.5% if you have a preferred account.

eBay is revamping their entire payment processing platform this year to get away from PayPal, so it will be interesting to see how this pans out for Reverb. I would think they'd like to keep fees low since they are now required to collect sales tax for most states. So now the buyers are getting shafted from one end, and the sellers from the other.

Looks like I closed my Reverb account just in time, after the shipping cost ripoff I endured.

[Matts67]

duff,

You make a great point in that Reverb and eBay both provide an unprecedented platform of advertising and reaching global markets. However, as others stated, I don't care to ship instruments to other countries, so the "global" aspect is a moot point for me, and most others. Still, you can reach a massive audience with little to no effort. I'll give them that.

Sure, they provide a platform and some level of personal customer service which is rarely needed, relatively speaking. But given how little manpower they need to run that site relative to how much money they're bringing in, the fee increase does not seem warranted. And in a time where businesses and people in general are struggling financially, mere months after the sales tax rulings were implemented, it does not seem like the time to increase your selling fees to further alienate small businesses.

The bottom line, regardless of our opinions, is that this is going to decrease sales - anyone can agree on that. Sellers will have to increase prices to stay afloat, and those increased prices coupled with state sales tax and shipping charges are going to deter a lot of buyers. A few months ago Reverb was a great place to find deals, but they're moving away from that, and in short order. And it all boils down to greed, nothing more.

[JGinNJ]

Interesting. A few months ago, a boutique shop I've bought & sold with announced he was increasing his consignment cut because he had to compete against Reverb, and this was before they increased their rates. I decided just to sell to them outright, rather than wait for a consignment sale for not much more money.

This shop is in a high rent town, and it seems like a lot of the guitars sit for a long time, so I don't even know how they hold on. Their prices are on the high side and they tend to overstate the condition, but I like going there because I can try guitars there I'd never find anywhere else except perhaps NYC.

The outfall from this trend is, there will be fewer choices to buy from, not more, and prices will go up to pay the middleman.

[Pickcity]

I've never bought or sold anything on Reverb. It is fun to look around at stuff on there, and I have warmed up to online purchases in recent years, but I try to keep my business in my local area. There are tons of music stores around Atlanta so that helps, and I realize many do not have that convenience, but they also don't have to deal with living near Atlanta.. LOL...

When purchasing online, I have always dealt straight with the store itself, and have never used Reverb as the source to find them.

There is still plenty to be said, and to appreciate about doing business the old fashioned way. It will always be my preferred method.

[upsidedown]

Could see the subject line, “Growing Together” and something about adjusting seller’s fees. So before opening it I assumed Reverb was doing a good -- or even self-interested - - thing; lowering its fee rate during this time of economic uncertainty.

Not so. Translation; we’re trying to grow our business and need more revenue to do so.

[archerscreek]

Not happy about it, but frankly the $23 I’d lose out on for a $1500 sale ($1500 x 1.5% = $22.50) is more than covered by the savings in shipping by using Reverb. I’m definitely putting an electric up for sale in the next day or so, though, and hope it sells before the deadline. Haha