Silk Road forums
Discussion => Silk Road discussion => Topic started by: wraithe on March 17, 2013, 05:05 am
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I am posting this in hopes of getting some clarification. I ran some numbers and am confused at the fee structure. Not sure if I did something wrong, or is this is the way it is.
I got the fee breakdown from http://dkn255hz262ypmii.onion/index.php?topic=39346.0 and that stated
10% of the first $50
8.5% of $50 - 150
6% of $150 - 300
3% of $300 - 500
2% of $500 - 1000
1.5% for everything over $1000"
in order to avoid confusion I have edited this with the proper fee scale courtesy of the post from grahamgreene (http://dkn255hz262ypmii.onion/index.php?topic=100160.msg702790#msg702790)
So taking DPR's fee scale, here is how a sale is broken down:
In a $300 sale, for example:
$50 is charged at 10% of the first $50, so $5 fee.
$100 is charged at 8.5% of the next $50 - $100, so $8.50 fee.
$150 is charged at 6% of the final $150 - $300, so $9 fee.
Total: $300.
Total commission: $22.50
Total paid to vendor for item: $277.50
Total paid to vendor for item, if hedging order (@ 4% hedging fee): $266.40
In a $1016 sale, for example:
$50 is charged at 10% from the $0 - $50 point, so $5 fee.
$100 is charged at 8.5% from the $50 - $100 point, so $8.50 fee.
$150 is charged at 6% from the $150 - $300 point, so $9 fee.
$200 is charged at 3% from the $300 - $500 point, so $6 fee.
$500 is charged at 2% from the $500 - $1000 point, so $10 fee.
$16 is charged at 1.5% from the $1000 and up point, so $0.24 fee.
Total: $1016.
Total commission: $38.74
Total paid to vendor for item: $977.26
Total paid to vendor for item, if hedging order (@ 4% hedging fee): $938.17
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It's 10% of 0 to 50
+ 8.5% of 50 to 150
+ 6% of 150 to 300
and so on.
If the product costs $49, then it's 0.10 * $49 = $4.90
If it costs $52, then it's (0.10 * $50) + (0.085 * $2) = $5.17
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holy shit i didnt realize fees were that high. thank you for clearing that up
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Eh, it's not that different, especially on the large amounts where you pay the most.
On $100 you pay $9.25 instead of $8.50.
On $1000 you pay $38.50 instead of $20. (A difference of 1.85% of $1000)
On $5000 you pay $98.50 instead of $75. (A difference of 0.47%)
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Oh my, DPR must be rolling in it. I mean there's thousands and thousands and thousands of items posted for each region. I'd love to see DPR's bitcoin wallet. Hope he keeps it encrypted and offline, and backed up in multiple locations. Damn can you imagine your a random hacker and pull that wallet file from one of your newly zombied computers, my head would spin after seeing the balance. Still cashing out that volume of bitcoins while trying to remain anonymous would be a bitch. Though it'd be a challenge I'm up for if DPR wants to donate his wallet file to me. 8)
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Eh, it's not that different, especially on the large amounts where you pay the most.
On $100 you pay $9.25 instead of $8.50.
On $1000 you pay $38.50 instead of $20. (A difference of 1.85% of $1000)
On $5000 you pay $98.50 instead of $75. (A difference of 0.47%)
yea i was just initially shocked, after ive slept i see it isnt that much different , lower is always better tho LOL
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Would we not all benefit from a more streamlined fee scale? This seems very abrupt and silly.
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ok sorry guys i dont get how this works...
so if i became a vendor and i sell something at $100 the commission fee would be 10% + the 8.5% so a total of 18.5%?
OR would it just be price of sale $100 and the 8.5%?
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ok sorry guys i dont get how this works...
so if i became a vendor and i sell something at $100 the commission fee would be 10% + the 8.5% so a total of 18.5%?
OR would it just be price of sale $100 and the 8.5%?
Think of it as ten percent minus a small discount for bulk.
It would be ($50*0.10)+($50*0.085) = $5 + $4.25 = $9.25
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Welcome to the circus.
X)
nomad
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idk this whole commission scale thing is bringing my hopes down i would be paying almost 18 dollars off my cut of every item i would be selling because ive been looking to see what product moves fast that i have and the quantity of it. it just doesn't make any sense to me that the guys that are re selling out of country product make anything off of it..
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idk this whole commission scale thing is bringing my hopes down i would be paying almost 18 dollars off my cut of every item i would be selling because ive been looking to see what product moves fast that i have and the quantity of it. it just doesn't make any sense to me that the guys that are re selling out of country product make anything off of it..
Yes it was a huge issue when first introduced but DPR didnt change it overnight but over the course of several months slowly so it didnt seem to get many compliants but in the end he got his green eggs and ham. I feel the dawn rising, soon first breeze share blow.
X)
nomad
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hopefully these rates change would make it a lot nicer but it also keeps everyone from becoming a vendor also
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Sure, fees are high...but for a black market, they are petty cash. The smart vendors with proper planning will succeed while the small bugs scurrying about get stomped out by professionalism. Vendors can also take steps to limit the number of their transactions by vending in higher quantities (and thus higher prices, reducing the gross % taken by SR). Some would argue that this is even safer as you are not exposed to a whole slew of trial users. Much respect to DPR and his marketplace.
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Yeh, I agree it adds quite a bit to the purchase price and would like to see it lower, but how much commission does EBAY etc. charge? and they are legit businesses without the complications of running SR.
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im not argueing it, after some thought I feel lowering the under 50 fees slightly and raising the rest slightly would be better or having a scale that is easier to figure out lol. no this one isnt hard but could be easier.
overall its worth it for the safety
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thats how i feel now that i really worked out the numbers with what i would be selling on the road its little bit of a hit but its not going to hit me hard. and for not having to see anyone or know where you are at the time is even better for my safety. i will take the little loss for the better part.
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Not sure if this has been cleared up (don't have time to read through the thread at the minute) but if there's still any confusion please refer to the post in my signature for clarification of Vendor & SR Commission Fees.
- grahamgreene
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Not sure if this has been cleared up (don't have time to read through the thread at the minute) but if there's still any confusion please refer to the post in my signature for clarification of Vendor & SR Commission Fees.
- grahamgreene
thanks I have edited my post and linked and quoted your post so no one thinks my bad math was right lol
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Not sure if this has been cleared up (don't have time to read through the thread at the minute) but if there's still any confusion please refer to the post in my signature for clarification of Vendor & SR Commission Fees.
- grahamgreene
i read your thread loved it helped me out a lot and is actually helping me get ready for becoming a vendor. i have been planing it for the last month now. and i am finally coming up with the 500 for the bond soon. and its all on from there.. One thing i will have to learn is how to shop though with usps.
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@thekid ~ Becoming a vendor is nothing to shake a soggy stick at... the research and build up to clicking 'become a seller' can be nerve racking but in the end I hope that you will find the experience to be rewarding because you could soon be providing a service to so many that need it. Stay safe throughout and best of luck.
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Thats the thing i know the reward back to being a actually good vendor and doing your job is the best reward back and thats what i love about this i would take my rating very serious almost to much. but the thing that scares me is shipping and cashing out and now im learning about the pictures and having to take all the info off of them. im not even worried abut the 500 bind that i could even lose really