Online marketplace Bonanza is raising commission fees from 3.5% to 11%, and it’s imposing new fees on larger-volume shops (called booths). Currently, Bonanza charges a 25-cent transaction fee for sellers who don’t have an active membership subscription, plus a commission fee of 3.5% on the “Final Offer Value,” or FOV.
Beginning May 1st, Bonanza will charge a 25-cent transaction fee for non-members plus a commission fee of 11% on the Final Offer Value.
Bonanza explains on its website: “FOV is the amount that the buyer paid to you for the item sold, plus any portion of the shipping fee that exceeds $10,” and it provided the following example: “If your product sold for $15 and you charged $12 for shipping, your Final Value Fee (FVF) charge would be calculated based on an FOV of $17. $15 (cost of item) + $2 (portion of shipping fee that exceeded $10) = $17 FOV.”
In its letter to sellers announcing the changes, Bonanza also explained its new listing fee for higher-volume sellers. It will charge a listing fee of 3 cents per item/month on listings, with no charge for the first 50 active listings. “The maximum you can be charged is $20/month. If you hit the $20 listing fee cap in a given month, you’ll receive a $5 Bonanza Ads credit – our way of saying thanks for keeping your booth thriving!
Bonanza recommended that as sellers near 716 listings, they should consider exploring its Gold Membership plan for $25/month, which provides perks such as: Unlimited Listings; Google Analytics; and Waived Transaction Fees.
Bonanza also announced it is rolling out new ad technology: “Until now, advertising was managed at the marketplace level. But starting soon, we’re moving to a more advanced, booth-specific ad system. This change means more targeted traffic to your listings, giving your products better visibility with the right buyers.”
It also announced new buyer and seller protections in Thursday’s letter:
“We’re also rolling out a new protection program to help build trust with first-time buyers.
“At Bonanza, we want shopping to be a joy, not a risk. This program will give both sellers and buyers peace of mind, making it easier for customers to feel confident purchasing from your booth.
“If you use Bonanza Payments and Bonanza Shipping, your orders will automatically qualify for Seller Protection. That means less worry about chargebacks and more focus on making sales.”
Bonanza went on to say in its email, “Even with these updates, Bonanza remains one of the most affordable online marketplaces for sellers,” and it said, “We understand that changes to fees aren’t always easy- but these updates are designed to ensure every product is promoted effectively and that you get the best possible return on your sales. They also allow us to continue developing new features and tools based directly on your feedback, wishes, and requests.”
Last year, Bonanza instituted a $2 fee for transactions not using Bonanza to print shipping labels but rolled it back after proving unpopular.
Selling fees are posted on the Bonanza website.