Buyers will also pay a new service fee based on the purchase price, if items are more than $20. This will be 99c for goods sold for $20.01 to $100, $1.99 for sales between $100.01 and $250 and $4.99 for items over $4.99. Stewart said 44% of trades were under $20.
It was a response to customer feedback and what was happening in the market, Stewart said.
“We are hearing two things really clearly. The first is customers really value the safety and protection we provide, but fees are becoming more of a barrier to selling. And so with these changes, we’re looking to respond to both of those things.
“While most fraudulent activities on Trade Me are resolved quickly, 90% of the scams that we couldn’t help our members with last year involved bank transfers. These payments happen outside our system, making it much more difficult for us to step in and help when things go wrong. Once a buyer sends money this way, those funds are often gone for good, and we have zero visibility over the transaction. That’s not a risk we want for our community.
“We’re committed to making every trade safer, which is why we’re moving away from bank transfers in favour of our secure payment systems.”
Massey University marketing expert Bodo Lang said it was likely to be in response from growth in the use of Facebook Marketplace, which offers no protection for buyers but charges no fees.
“Facebook Marketplace has certainly been snapping at their heels … I think it could also be seen as a move to make pricing more transparent because it’s not always easy for someone who’s selling something to understand exactly what the fee will be.”
He said a younger generation might feel more comfortable buying and selling on social media and would be less inclined to think of Trade Me.
“[With Facebook] it’s easier to actually get hold of people and close the deal, whereas for Trade Me you have to wait until the auction is over and there’s a bit more of a rigid process to follow, whereas Facebook Marketplace is very organic and sort of consumer-to-consumer that just happens to be facilitated by a platform … convenience is such a big driver of behaviour.”
Stewart said Facebook Marketplace was one of Trade Me’s biggest competitors.
“Like all businesses, we do keep an eye on what they’re up to. But ultimately, this is about listening to what our customers want and creating the best experience that we possibly can.”
She said Trade Me had been in operation for 27 years and this would help set it up for the next 27.
The buyer fee would go towards keeping the platform operating and allow it to keep offering local support.
Stewart said she was selling a pram and hoping to get $100. At the moment she would pay about $8 in success fees. Under the new rules she would pay no success fee but about $2 in Ping fees. The buyer would pay a 99c service fee.
“In total, our customers will be paying about $5 less in fees for a transaction of about $100.”
There is no change for vehicle sales, property or professional sellers.
– RNZ
