Amazon charges fees based on the category of the product it is in. It ranges from 8% 15%.
Same with eBay. If you sell a car, a percentage doesn’t make sense. They charge a flat rate fee for those items.
Does SAFEX plan to implement a category tiered structure for the commission as well? Is the 5% just a placeholder?
There’s no monetary incentive to use SAFEX for selling items such as cars. 5% of $15,000 is $750. That’s $750 fee on SAFEX compared to eBay’s flat rate of $125.
I agree with this and you are correct; however, we can also assume a 5% average across the range of all products.
For instance I do recall in our research that Alibaba is charging 8% on average across all categories.
However; if someone wants to offer say a “localbitcoins” type transaction trading Safex (Cash) for national currency then a 5% fee would be far too high. Yet for such a transaction would be special conditions and therefore would also differentiate the fee from 5% to say… 0.2% or even 1% (like localbitcoins charges)
SAFEX is an emerging marketplace. Our rates MUST compete with other marketplaces (Amazon), or no one will “try” it. As the new kid on the block, I suggest we make our fees as low as possible to get the marketplace going.
Every merchant wants to pay as little as possible to sell their product or service. And every consumer appreciates lower prices and more variety.