Hi everyone,
I wanted to let you know about a small change that is now in effect on WPBay.
From now on, the minimum price for products listed on the marketplace is US$5.
This wasn’t a decision I made lightly, so I wanted to explain the reasoning behind it.
Many people don’t realize that every purchase has fixed payment processing costs attached to it, which are fully paid by WPBay. When someone buys a product, payment providers like Stripe or PayPal charge a processing fee before the marketplace receives anything. On very low-priced products, those fees are actually be higher than WPBay’s commission.
For example, if a product costs only a couple of dollars, the payment processing fees alone can consume most, or sometimes even more than, the marketplace commission. That means WPBay would actually lose money on those sales, even before accounting for servers, customer support, refunds, accounting, taxes and everything else required to run the platform.
As most of you know, WPBay already has one of the lowest commission structures in the industry. Elite sellers pay only 12%, and I’d like to keep those commissions as low as possible for everyone. Introducing a small minimum product price is one of the ways I can do that while keeping the marketplace sustainable.
I don’t expect this change to affect many sellers. Most WordPress plugins, themes, services and scripts are already priced well above US$5. This mainly prevents products from being listed at prices where the transaction simply doesn’t make economic sense.
As always, I’d love to hear your thoughts or feedback. If you have any questions, feel free to reply below.
Thanks everyone for being part of WPBay!
Szabi