Another Competitor Makes Some Big Changes

[my-cottage-books-and-antiques]

ebay competitor Mercari announced some big changes today. The best summary I've seen is here:

https://www.valueaddedresource.net/mercari-shifts-fees-buyers-returns-any-reason/

Will this impact ebay's strategy going forward, or will it have little or no effect? I don't know, but it will be interesting to see what the next ebay Seller Update contains....

[valueaddedresource]

What do you do when you've thrown your business into complete chaos? Sponsor an F1 team of course!

So this is where all those new fees are going. 🤦‍♀️ Guess they're taking the old Silicon Valley "move fast and break things" thing a bit too literally?

MoneyGram Haas F1 Team is pleased to announce a new regional partnership with Mercari, the online marketplace that connects millions of people across the U.S. to shop and sell new, unique, and preloved items. Mercari’s partnership with America’s Formula 1 team, kicks off this week at the Japanese Grand Prix.

Mercari’s online marketplace provides a community for casual sellers, deal seekers, and avid collectors to easily buy and sell items that are often hard to find anywhere else. From fan-favorite apparel and accessories to rare collectibles and trading cards, Mercari has something for every motorsport enthusiast to share in their fandom.  

Mercari’s sponsorship of the MoneyGram Haas F1 Team will continue throughout the racing season with the Mercari logo featured on car in Japan and at Haas’ three home races in Miami, Austin and Las Vegas. 

https://www.haasf1team.com/news/moneygram-haas-f1-team-and-mercari-us-join-forces-new-sponsorship

[my-cottage-books-and-antiques]

@valueaddedresource "ill-timed" is definitely the phrase that comes to mind.

[valueaddedresource]

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@my-cottage-books-and-antiques wrote:

@valueaddedresource "ill-timed" is definitely the phrase that comes to mind.

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@my-cottage-books-and-antiques absolutely! I know this had to be in the works for a while because those agreements take time but....not the best time for an announcement for sure. 😬

[my-cottage-books-and-antiques]

@valueaddedresource  My guess is management has decided to just continue as normal because they assume the negative response will eventually blow over. And they are probably right about that. I do see some Mercari sellers saying they are in wait and see mode, some are actually seeing good sales (esepcially if they lower their prices in recognition of the fee change, and so forth. If sellers discover that the buyers haven't all fled, even some who closed shop when this was announced will be back.

So, while Mercari might run some promotions or take some other steps to address this, I don't really see them reversing course. As I've been saying, it's a gamble, but it's a gamble that might ---I emphasize might---pay off after the dust has settled. 

[justagirl12]

With this policy why would anyone sell on there? Especially if the item is of any value. No way. 

[my-cottage-books-and-antiques]

@justagirl12  Which specific policy do you mean?

The 3 day return policy? 

On ebay I have a 30 day free return policy---that means return for any reason, including what is called "buyer remorse"  It hasn't been a problem.

If I wanted to give Mercari a try, a mere 3 day return policy---27 days shorter than my ebay policy---wouldn't hold me back.

[justagirl12]

I’m referring to items primarily over $500 and in a category that you wouldn’t be comfortable allowing returns for any reason for. I’m sure it’s great for garage sale stuff.

[my-cottage-books-and-antiques]

@justagirl12 Thanks for providing more info. My understanding most existing mercari sellers probably fall into the "yard sale" stuff category. Would you be comfortable selling $500 and over in the category you are referring to on ebay?

[justagirl12]

Yes, for sure because it goes through authenticity guarantee where they not only check for authenticity but they check that the item matches the description as well.

For items that don’t go through authenticity guarantee and were over a certain dollar amount no I wouldn’t be comfortable here …or anywhere where a buyer could return for any reason. I can only imagine the scam buyers going in droves to mercari right now. 

[my-cottage-books-and-antiques]

@justagirl12 

Well, so when you said "anyone" you meant "sellers selling expensive items that could be authenticated on ebay", rather than "anyone". In that case, I would agree with you. I'd probably stick with ebay for that kind of merchandise. 

For lower dollar items in categories with historically low return rates? Personally, I wouldn't worry about it. And remember buyers will now be paying fees to Mercari, which, I believe are nonrefundable on a return. So that might dampen some of the enthusiasm for returns (I'm not sure who is paying the return shipping).

But basically, I think the 3 day return policy will chase away the sellers who are convinced having a basic (and quite short) return policy is going to lure millions of fraudsters. Many sellers and businesses have liberal return policies and find they are workable, so I guess we'll just have to wait and see how this plays out.

[simplytommy]

No not just for clothing i have my vintage glassware store on there 

[*_forum_id_*]

Mercari selling fees were a flat 10% for sellers, who by the way, can deduct those fees off their taxes as a business expense.     Sellers at least knew what their fee was going to be and could haggle their prices with buyer with known values.

I personally have seen Mercari "Service Fee" for buyers range from 5% to 18%.

I received an offer of 8% off an item I had in my Favorites.   

The only amounts I saw in the Offer were item cost and shipping.  (Which is all you see on the item page as well, by the way.   The Service fee and Payment processing fees only show up when you go to checkout.)

I have no idea what the Service Fee would be if I accepted the offer.   

Same with payment processing fee which includes 2.9% of the unknown service fee so I would be accepting an offer with unknown final costs.   

I didn't want to Accept the offer and be surprised after the fact that the Service Fee amount was in the 10-18% range.    Any Service Fee over 10% garners more fees to Mercari than the original fee structure at the buyers expense, which is not tax deductible.   

Factoring in the Service Fee and payment processing fees into the amount I am willing to pay for an item, is a game changer.  

To boot, Mercari adds insult to injury with this statement for explaining their Service Fee.

The ? next to Service Fee reads:

    "Service Fee may vary. It help's [sic] us improve Mercari's features and your experience." 

Hard pass.