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Ricardo continues to change the wage model. It should now be based on success. That is, anyone who puts high-demand items on the auction platform will pay more commissions in the future. Items that are not very common are charged a lower sales commission.
This fee adjustment is effective from May 2, the Internet auction platform last increased its fees in September.
Success commission by product type
Until now, the success commission for transactions at Ricardo has been ten percent of the sale price obtained, and the maximum value that Ricardo has stripped has been capped at 290 francs. When asked by Blick, Ricardo spokesperson Mojca Fuks explains, “As part of the new fee structure, the commission for success will be differentiated by product type and will be between eight percent and twelve percent.” The minimum wage is 10 cents and Ricardo continues to earn a maximum of 290 francs. Members have already been notified.
In other words, there is not a general increase in wages, but a differentiation in commissions.
Some product brokerage will be cheaper
According to Fuks, for about half of product types—measured in terms of sales in 2022—the commission for success remains at ten percent, and is even cheaper at eight or nine percent. The other half has a “moderate increase” of eleven or twelve percent. But an increase from ten to twelve percent corresponds to a 20 percent premium.
Ricardo buys eight percent of products from the literature and pet supplies areas. Nine percent is required for smartphones, including accessories. So these areas are cheaper than before.
The commission in the area of tools, including accessories, artwork and watches, remains at ten percent.
Sales are getting more expensive in computers and gaming (currently an eleven percent commission) and furniture/home/garden, fashion and entertainment. Model trains, musical instruments, records, cameras, skis, bicycles and toys fall under the “entertainment” category.
Sales quota decides
The last time fees were raised, Ricardo argued with new functions and services. The investments made for this had to be met with higher fees.
In this case, it’s about investments. According to Fuks, Ricardo’s revised fee structure is based, among other things, on the sales rate of products, i.e. the probability of successfully selling a product on Ricardo.ch. Fuks explains that Ricardo has invested specifically in expanding the range of selected product types. This includes product, advertising and marketing measures.
Example: At Ricardo, the sales rate of fashion products is 30 percent higher than that of books. For this reason, only eight percent commission is charged for books, while twelve percent commission is charged for clothing. Fees are increased for promoted product types and lowered for less successfully sold product types.
According to Fuks, “in addition to security, investments will continue to be made in improving performance and continuous optimization of the platform”. For example, all offers are now provided with attributes (color, size, dimensions, brand, etc.). These are particularly relevant to product types such as fashion.
user review
Although not a general survey, there are criticisms from consumers. Twitter user Ronald McGill, for example, complained that Ricardo’s camera commission had increased by more than ten percent in four years.
The criticism has so far not harmed Ricardo. That was the case with the pay rise last fall or summer 2018. But the annual number of buyers has increased by 20 percent in the last four years, according to Fuks.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
