This all might take 2 weeks or it might take a month.
Come back soon, we miss you already!
I will give you the same example I gave DPR: I think that buyers who are buying over $1000 of product should have a fee of 3%. He pointed out to me that the current fee was 3.8% and that did I believe the less than one percent difference really mattered. But it was not the answer to the question I was asking. I was talking about a person buying $1000 of say $3.00 items, a quite common occurrence, and he was talking about a person buying one $1000 item. Something that I don't think happens very often. The person buying $1000 of $3.00 items is currently paying, I THINK, closer to 8% in fees, but I haven't been able to find a commission schedule to check this out and confirm it, one of the many things I plan to do while we reorganize.
Just to be clear, the same commission is charged if you buy 1,000 $1 items or one $1000 item.
As an innovator and for his amazing responsiveness to the needs of the community I have nothing but respect and admiration for DPR. We vendors know that the improvements have come fast and furious ever since Day One and that sometimes they even were instituted within 24 hours of being first mentioned. THAT'S great vendor support and that's worth paying for. But I don't think that using Ebay as your comparative is proper because Ebay rapes it's customers on fees and when you add in the cost of using PayPal on top of it it's plain highway robbery. Amazon, on the other hand, charges no fees, has the lowest prices in the universe, and gives free shipping on all orders over $25. I think that if you're really here to serve the buyer community then you've got to look at the Amazon model and ask "how close can I get to that and still make a reasonable profit for myself". Ok, that's MY opinion and that's what I'm going to leave you all with.
Amazon charges the most commission of anyone! a flat 15% for most item categories (some more some less). But too much emphasis being put on fees I think. You mentioned that you couldn't keep up with the growing demand. If anything that means your prices are too low!
Vendors, you should price your items such that you don't sell out, always have a minimum stock available, and don't get burnt-out or overwhelmed. This has several effects:
1) There is always product available at SOME price, which is better than NO product at any price. If your inventory is shrinking, expand your operation, or increase your prices, but don't keep them low until one day you run out and your customers are left high and dry.
2) You make more money and can expand your operation (hire help, find new suppliers, stock up on more/different inventory). You'll also be more motivated and less stressed.
3) You send a signal to other suppliers: "there is money to be made here" and we get more vendors entering the market, leading to sustainably lower prices, more variety and higher quality.
A free market is always a win for everyone involved (if fraud is present, we can't call that transaction free). My point is that so long as you aren't doing anything shady, maximizing your profit is the best thing you can do for yourself, your customers, your suppliers, and your partners.
A final note: hopefully Pharmville will hurry back, but no matter what they are leaving some big shoes to fill. I hope to see some strapping new vendors take advantage of the hole in the market as soon as possible by providing an honest and professional service. Unfortunately we can also expect fraudsters to pretend to fill this hole and scam desperate Silk Road customers looking for an alternative. So, we'll be keeping a close watch on this and nipping any scam operations in the bud, but remember to be weary of new vendors offering deals that are too good to be true or asking for direct payment or early finalizing. Help us and the rest of the community out by reporting anything suspicious.
Thanks