As a seller on online marketplaces, maximizing profits is a constant pursuit. Every percentage point in fees can significantly impact your bottom line. This is where Mercari comes into play, a platform that has shaken up the reselling world with its recent change to its fee structure. This blog post will break down all the essential details of Mercari fees for sellers in 2024, guiding you on how to make the most of this platform and discussing its implications for the online marketplace landscape.
In This Post:
What Is Mercari?
Mercari is a rapidly growing online marketplace on a mission to create a space where anyone can buy and sell with ease. Despite being a Japanese company, it boasts over 20 million active users in the United States, illustrating its remarkable expansion. Mercari is particularly popular for its user-friendly interface and the diverse array of categories for sellers, making it an attractive platform for both seasoned resellers and newcomers. Many compare it to a “baby eBay” due to its simplified listing process, making it even more beginner-friendly.
The Big Change: No More Seller Fees
The biggest news for Mercari sellers is the recent elimination of all seller fees, a game-changer for the online marketplace landscape. Effective March 27, 2024, all newly listed items on Mercari are exempt from the 10% seller fee previously charged. Even for listings created before this date, a simple update will make them eligible for the new 0% fee structure. This significant cost-saving measure instantly gives Mercari a competitive edge over platforms like eBay, which still impose seller fees.
Fees That Still Exist
While the news of zero seller fees is undoubtedly exciting, it’s crucial to be aware of the fees that still exist on Mercari. Understanding these charges will help you accurately calculate your profits and price your items accordingly.
Service Fee for Buyers
To offset the loss of revenue from seller fees, Mercari introduced a new service fee for buyers. This fee, displayed at checkout, varies depending on the item and other factors, and it might not be refundable upon return, making it a crucial point for both buyers and sellers to acknowledge.
Payment Processing Fees
For listings created before March 27, 2024, Mercari still charges sellers a payment processing fee of 2.9% + $0.50. This applies to the final sale price, including shipping, and is only deducted for completed transactions.
For listings created after March 27, 2024, this payment processing fee is shifted to the buyer. It is calculated as 2.9% + $0.50 of the total transaction price, which includes the item price, shipping costs, service fees, and sales tax. Unlike the fee for older listings, this one might not be refundable in case of returns or cancellations.
Balance Withdrawal Fees
Mercari offers two options for sellers to withdraw their earnings:
- Direct Deposit: Takes 2-5 business days to reach your bank account. No fees for balances exceeding $10. A $2 fee applies for balances under $10.
- Instant Pay: Offers immediate payment. However, it comes with a flat $3 fee.
While Instant Pay offers immediate gratification, Direct Deposit is often the more cost-effective option, especially if you can wait a few days and your balance is over $10.
Shipping Fees
Mercari provides prepaid shipping labels at discounted rates for packages weighing up to 50 lbs and with a maximum length of 34”. This can save you money compared to retail carrier pricing. Special discounted rates are available for Media Mail and First-Class Envelopes (specifically for trading cards). However, exceeding the weight/size limits or using incorrect packaging will result in overage fees that the seller is responsible for.
Local Delivery Fees
For sellers who prefer local sales, Mercari offers two options:
- Standard Local Delivery: Costs $15.99 for items smaller than a microwave (22″H x 30″W x 25″D) and under 50 lbs.
- Furniture Delivery: Available in select cities for $199, this option covers up to three furniture items that fit in a pickup truck bed (72″L x 48″W) with a combined weight not exceeding 300 lbs.
Mercari partners with Uber and Dolly for these services, and the final delivery fee is shown to the buyer during checkout.
Cancellation Fees
If a seller frequently cancels orders, Mercari might charge a cancellation fee of 5% of the item price, capped at $25, to cover transaction, operational, and shipping costs. However, sellers are issued warnings before any fees are charged, allowing them to rectify the situation.
Other Fees
In addition to the above, Mercari charges the following fees:
- Legal Fees: $25/hour for processing subpoenas from law enforcement.
- Mercari Authenticate: $5 for listing items exceeding a certain value and $10 for a Certificate of Authenticity, both through a third-party service.
- Warranties: Offered by a third party, with separate fees not controlled by Mercari.
Analyzing Mercari’s Strategy
Eliminating seller fees is a bold move by Mercari, and it has undoubtedly sent ripples through the online marketplace landscape. This strategy appears to be a play to attract more sellers, potentially luring them away from platforms like eBay with their higher fee structures.
By siding with sellers and offering a more cost-effective platform, Mercari aims to gain market share and strengthen its position as a leading online marketplace. However, the shift of payment processing fees to buyers could potentially impact buyer satisfaction and purchasing decisions. It’ll be interesting to observe how this calculated risk unfolds in the coming months.
Changes to Return Policy
In conjunction with the fee change, Mercari also revised its return policy. The return window has been shortened to three days, but buyers can now return items for any reason. This change aims to streamline the return process while providing buyers with greater flexibility. However, this could potentially lead to an increase in returns for sellers.
Is Mercari the Right Choice for You?
Choosing the right online marketplace ultimately depends on your specific needs and business model. Factors to consider include the platform’s user base, fee structure, desired profit margins, the type of items you sell, and your overall business goals.
With its user-friendly interface and recent elimination of seller fees, Mercari is a strong contender for beginners and casual sellers. However, for high-volume sellers or those dealing in specific niches, platforms like eBay or Poshmark might be more suitable. Consider your individual needs and weigh the pros and cons of each platform before making a decision.
FAQs
How do I get paid on Mercari?
Once the buyer rates the transaction or after three days from the delivery date, your earnings become available in your Mercari balance. You can then choose to redeem them via Direct Deposit (2-5 business days) or Instant Pay (immediate).
What happens if my direct deposit fails?
If your direct deposit fails, Mercari charges a $2 fee. Ensure your banking information is accurate to avoid this.
Can I avoid shipping fees on Mercari?
You can offer free shipping by incorporating the shipping cost into your listing price. Alternatively, use Mercari’s prepaid labels for discounted rates and ensure your items are weighed and packaged accurately to avoid overage fees.
Do I have to promote my listings?
Promoting your listings on Mercari is optional, but it can be beneficial, especially in saturated categories. You can use “Promote” for a 5% price reduction and increased visibility or “Offer to Likers” for a 10% reduction to attract more buyers.
How much does Mercari take?
For sellers, Mercari no longer charges seller fees for newly listed items (as of March 27, 2024). However, a 2.9% + $0.50 payment processing fee is still charged for completed transactions on listings created before March 27, 2024.
For buyers, Mercari charges a service fee at checkout, and a 2.9% + $0.50 payment processing fee on listings created after March 27, 2024. These fees are added to the total transaction price, which includes the item price, shipping, service fees, and sales tax.
What are the best categories to sell on Mercari?
Mercari is known for its diverse range of categories, so the best categories to sell in will depend on your inventory and target audience. Popular categories include clothing, shoes, accessories, electronics, home goods, and collectibles.
Conclusion
Mercari has boldly stepped into the spotlight by eliminating seller fees and offering a more attractive platform for resellers. This significant change, coupled with its user-friendly interface and diverse range of categories, makes Mercari a strong contender in the online marketplace arena.
By carefully considering your individual needs and understanding the intricacies of Mercari’s fees, you can leverage this platform to maximize your profits and build a successful reselling business. Now is the time to explore what Mercari has to offer and join the growing community of sellers. Share your thoughts and experiences in the comments below, and let’s discuss the future of online reselling together!