Trade Me is scrapping success fees for casual sellers. One marketing expert attributes it to the rising dominance of Facebook Marketplace.
Sellers have typically paid 7.9% of the final sale price for items sold online through Trade Me. However, a new fee structure starting next week will eliminate them, with site spokesperson Lisa Stewart noting that casual sellers will benefit.
Trade Me is introducing other changes simultaneously, removing bank transfers and offering Ping on every listing alongside cash and Afterpay—with sellers facing a 2.19% transaction fee. This includes buyer protection up to $5000 for problematic trades.
“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.”
Buyers will also face a new service fee based on the purchase price for items over $20.
“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,” Stewart said.
‘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.
Massey University marketing expert Bodo Lang said the change is likely a response to the growing use of Facebook Marketplace, which charges no fees despite offering no buyer protection.
“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.”
“[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 identified Facebook Marketplace as 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.”
Trade Me, now 27 years strong, is making these changes to thrive for the next 27, according to Stewart. She explained that the buyer fee would fund platform operations and sustain local support.