Reverb.com Fee Adjustment

Discussion in 'Bad Dog Cafe' started by rsclosson, Jul 14, 2020.

  1. rsclosson

    rsclosson Tele-Afflicted

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    Just got an email that reverb.com is raising their fees to 5 percent. Looks like they are going the way FeeBay has gone. Pitiful!
     
  2. Mike Eskimo

    Mike Eskimo Telefied Ad Free Member

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    EBay is still 3.5% for instruments, amps, etc.

    And if they’re smart , they’ll stay there...
     
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  3. FenderGuy53

    FenderGuy53 Poster Extraordinaire

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    I just received an email from Reverb.com. Changes are coming!

    "Beginning on August 4, 2020, we are increasing our selling fee for the first time ever⁠— from 3.5 % to 5%."

    Read the entire text here:

    [​IMG]
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    To Our Community,

    I’m writing to share upcoming changes that will enable us to significantly grow our marketplace so that we can help you reach even more buyers all over the world. Beginning on August 4, 2020, we are increasing our selling fee for the first time ever⁠— from 3.5 % to 5%.

    When Reverb launched in 2013, the idea was simple—an online marketplace built specifically for the musical instrument community by a team of musicians. Our team thought about everything that we, as music makers, wanted in a site for selling gear and put it into Reverb: A live support team staffed with musicians, tailored tools to make things like price negotiation easier, a personalizable feed and useful content to help buyers find exactly what they want, and more.

    Today, Reverb is the largest online marketplace dedicated to buying and selling musical instruments. In the past year alone, our community has achieved tremendous growth. More consumers are buying instruments than ever before, and players of all levels increasingly are buying gear online. As more buyers move online, we’ve heard you loud and clear: You want more support and more tools to help you get your gear in front of Reverb’s expanding audience of high-quality buyers and grow your sales.

    We take the role that we play in supporting your business very seriously. Over the past seven years, our team has worked tirelessly to improve our marketplace to support your business and to find new ways to help you grow your sales. Now is the time to deepen our commitment to these efforts. We are modifying our selling fee to help us invest more to sustain our community’s continued growth. This year alone, we plan to increase our investment from 2019 by:
    • Investing over 30% more in marketing initiatives—including SEO, online video advertising, and other digital advertising—to get your inventory in front of more buyers from around the world.
    • Expanding by more than 25% the capacity of our global customer support team focused on assisting you and your buyers as we grow.
    • Increasing by more than 40% the capacity of our product team focused on creating and enhancing seller tools and services to increase the visibility of your shop and inventory.
    Our team comes to work each day to ensure the success of our sellers—our marketplace simply doesn’t exist without the independent shops, makers, artists, experts, and individuals that form our vibrant seller community. These changes will enable us to bring more buyers to Reverb on your behalf, support the long-term health of your online business, and continue growing together.

    Sincerely,

    David Mandelbrot
    CEO, Reverb
     
  4. WalthamMoosical

    WalthamMoosical Tele-Meister Ad Free Member

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    "We're doing this for you!"
     
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  5. charlieBravo

    charlieBravo TDPRI Member

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    They're going the YT route and just focus on the "content farms" rather than the individual seller. 5% is a lot. I'll be doing my business elsewhere.
     
  6. raito

    raito Poster Extraordinaire

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    Translation:

    We're now the big dog and can do as we please.
     
  7. willie

    willie TDPRI Member

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    Shooting themselves in the foot...on several levels. Adding 5% to the fees with increasing shipping costs will make selling on their site much less attractive, and make it even harder to compete with discounted prices and free shipping on new gear from online sellers. Farewell and adieu...
     
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  8. 100LL

    100LL TDPRI Member Ad Free Member

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    5% for the seller. And the buyer has to pay sales tax. No thanks, I'll buy right here and a few other forums, and CL I suppose.
     
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  9. VonRang

    VonRang TDPRI Member

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    Well all I can say is bu%#$h!*!

    Reverb will not grow anything with me raising your cut of my sales.

    If anything you will lose participation and membership, especially when people like me go to the forums of Facebook, Twitter, Mylespaul.com, TDPRI and a myriad of others to rant and advocate for alternatives to Reverb.

    We went to Reverb as a real alternative to eBaY and now you are becoming the same as eBaY.

    Now you raise fees all in the name of doing US all a favor!

    Well, I'll say it again, bu%#$h!*!

    Just another reason to go to Facebook Marketplace and Craigslist.org

    Salvatore Grado II
    Bowling Green Kentucky
     
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  10. tfarny

    tfarny Friend of Leo's

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    So, because they have been so succesful, they need to raise prices and spend the money on marketing! One more reason to always buy local and in-person when possible.
     
  11. pirate19

    pirate19 TDPRI Member

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    Yea, 5% (plus 2.5% payment processing) really cuts into the profit margin and makes it less likely sellers will work with you on a deal. Local/forum sales are the way to go

    Sent from my SM-G970U using Tapatalk
     
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  12. ReverendRevolver

    ReverendRevolver Tele-Afflicted

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    I anticipate lots of price hikes and emails about paying via PayPal off 'Verb.

    Well, that was good while it lasted.

    Is it Etsy that owns them now? I guess they didn't want to keep it running that badly. 2.5% of 500 transactions is better than 5% of 60 transactions, generally speaking. ....
     
  13. theprofessor

    theprofessor Poster Extraordinaire

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    Boo. Most everything that is good eventually becomes un-good. Some things faster than others. Un-good.

    Remember when Hulu almost broke the Internet by actually offering 100% free television for a while? What a coup! ... for a few months.
     
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  14. FenderGuy53

    FenderGuy53 Poster Extraordinaire

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    Facebook? Perhaps. Craigslist? Ehhh. Not with alleged buyers saying they'll send a driver with a check! Very shake-y!
     
  15. superbadj

    superbadj Poster Extraordinaire

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    Oh good grief. They're raising their fee from 3.5% to 5%, an increase of 1.5%. So that's a $15 total increase in fees on a $1000 guitar. Big deal. Have you ever stopped a deal because of a $15 differencing in pricing/offer/whatever? I highly doubt it. Unless we're talking about a $60 guitar, that $15 difference is negligible.

    Reverb.com has turned into a great marketplace for sales, far better IMHO than Ebay, and obviously a much, much, much larger pool of potential buyers than your local craigslist.

    Your local mom and pop shop would charge much more than 5% for a consignment sale, which is pretty much exactly what this is. They provide the shop, you provide the gear.

    And Craigslist is great...IF you can find a buyer that'll pay your price. In my experience, and I've sold more than a few guitars locally, on Reverb, and on Ebay over the years, the prices I've gotten were best on Reverb because there were so many more buyers who wanted what I had to sell.

    I get it, nobody likes increases in fees, but they're not doubling their fee or charging anything close to what Ebay charged (it was like 8% wasn't it?? I can't remember).
     
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  16. Lucius Paisley

    Lucius Paisley Tele-Meister

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    Oh, good. So nothing will change then.
     
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  17. mjstamos

    mjstamos Tele-Holic

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    This is really bad timing on Reverb's part. Right when basically every musician on earth is out of work they raise their fees.
     
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  18. teletail

    teletail Tele-Afflicted

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    That's the end of selling on Reverb for me. By the time you factor in Reverb Fees, Paypal fees, and shipping, it's not enough more than selling to my local music store to make it worth the hassle. At my local store, I walk in, sell it, get a check, no muss, no fuss, no chargebacks, no seller regret, just me and my money.
     
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  19. archtop_fjk

    archtop_fjk Tele-Holic

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    I have bought and sold a lot of gear on Reverb. The 5% seller's fee and their new, confusing methods for payment will likely make me close my shop there. I've recently been buying more stuff on eBay anyway, so no real loss. I'll just learn to sell on eBay as well so as to consolidate my online musical gear commerce.

    It's too bad. Reverb started out as a great idea, but has since gone downhill.

    On the plus side, it will make me more likely to purchase music gear from my local brick and mortar music store. Perhaps we'll see a resurgence in local retail versus the capricious online mega-vendors...
     
    Last edited: Jul 14, 2020
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  20. MojoTrwall

    MojoTrwall Tele-Meister

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    Thanks to the magnificient Reverb we have people here saying lOoK de Prise on Reverb.

    Withtout understanding that something like this type of second hand market is purely local.

    And Given Price are not selling Price.

    Glad to do diy stuff it avoid dumb youtube Gear speculator.
     
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