Sedo buyer fee transparency

[carob]

I wonder if sellers here realise that Sedo charges buyers an extra 3% Express Fee to pay by Paypal or credit card? You only find out when you go to pay, which is a bit of a shock. (Otherwise buyer has to pay by wire transfer, covering the cost of that themselves, and for sales over 5k all payments must be by wire.)

Would that unexpected 3% surcharge give buyers a bad impression of Sedo and even make some back out? Looks like it, judging by Sedo's many bad reviews on Trustpilot https://uk.trustpilot.com/review/www.sedo.com where a Sedo rep replied to a complaint about this by saying on 27 Feb 2019:

We will definitely improve the transparency in regards to the express payment fee thanks to your feedback. Actually the Information is not hidden in our T&C it is mentioned on the price list but i have to agree it can be easily overseen.

So is that 3% surcharge on top of agreed sale price really stated in their ToS and prices? NO. You can verify that yourself:

It's not here in the ToS: https://sedo.com/us/about-us/policies/terms-of-use/

And the mention of Express Fee in the Price List ONLY refers to, so only applies to, Sedo's standalone escrow service (External Transfer), NOT to markeplace sales. So customers have no way of knowing this surcharge will happen when they go to pay for the domain they just clicked to buy. This is the only mention of Express Payment:
https://sedo.com/us/what-we-offer/price-list/

Transfer Services for external domains sales
Even when agreements are made outside of our platform, Sedo's secure Transfer Services are available regardless of which role you are playing.
Sellers receive their money without any hassle whatsoever and we provide assurance to buyers that they will acquire unlimited control of the new domain after payment has been received.
The applicant is charged a fee of 3% of the gross selling price (note the minimum fee). Upon request, we will also assist you in dividing the fee between the buyer and seller. Additional fees may exist through your registrar or bank. There is an additional 3% express processing fee added for payments over $500 made using Alipay and PayPal and Credit Card.

 

[wizard]

I wonder if sellers here realise that Sedo charges buyers an extra 3% Express Fee to pay by Paypal or credit card? You only find out when you go to pay, which is a bit of a shock. (Otherwise buyer has to pay by wire transfer, covering the cost of that themselves, and for sales over 5k all payments must be by wire.)

Would that unexpected 3% surcharge give buyers a bad impression of Sedo and even make some back out? Looks like it, judging by Sedo's many bad reviews on Trustpilot https://uk.trustpilot.com/review/www.sedo.com where a Sedo rep replied to a complaint about this by saying on 27 Feb 2019:



So is that 3% surcharge on top of agreed sale price really stated in their ToS and prices? NO. You can verify that yourself:

It's not here in the ToS: https://sedo.com/us/about-us/policies/terms-of-use/

And the mention of Express Fee in the Price List ONLY refers to, so only applies to, Sedo's standalone escrow service (External Transfer), NOT to markeplace sales. So customers have no way of knowing this surcharge will happen when they go to pay for the domain they just clicked to buy. This is the only mention of Express Payment:
https://sedo.com/us/what-we-offer/price-list/

Simple don't sell your names on sedo...

 

[carob]

 

[Jurgen Wolf]

My buyers are paying those 3% without questions... never had issues regarding this matter.
Even recent $5K sale via Sedo escrow was paid by Card from the USA.

 

[Jurgen Wolf]

The same was with Payoneer Escrow... also extra 3% (per CC payments) and it was deducted from Seller.

 

[carob]

My buyers are paying those 3% without questions... never had issues regarding this matter.

Glad you are getting the sales but that does not mean people are happy, or would buy again on Sedo or recommend them.

This could even explain some abandoned sales on Sedo because effectively it is a hidden fee - you cannot see it until after you hit the buy button and go to pay, so you do have legitimate grounds to not pay and cancel the transaction. Some people object so strongly to hidden fees that they will abandon a transaction or not use a service and will use another instead - for example Undeveloped say there are no hidden fees and they will take cards up to 50k.

 

[Jurgen Wolf]

When negotiating with my buyers I inform that will be +3% if CC/PayPal method over $500.
Or wire is available for 0%.
But they almost always pay via CC/PayPal.

Regarding Undeveloped escrow...
I already had 3 failed sales there in 2019... or just 1 of 4 sales has finished successfully.
When transaction was started - 3 buyers disappeared.

 

[Jurgen Wolf]

And Undeveloped escrow fee is 5% comparing to Sedo 3%.
It already includes the loss regarding their Payment processor, that's why no additional fee.

 

[Jurgen Wolf]

Overall, Sedo has Feedback button...
If you think that matter can be improved - hit it and submit...

 

[Jurgen Wolf]

It's not here in the ToS: https://sedo.com/us/about-us/policies/terms-of-use/

It is there.
Section 5, where pricelist is mentioned.
And then all fees are stated in their pricelist including extra 3% per CC/PayPal payments over $500.

 

[Jurgen Wolf]

The same was with Payoneer Escrow... also extra 3% (per CC payments) and it was deducted from Seller.

And with escrow.com as well.

 

[carob]

It is there.
Section 5, where pricelist is mentioned.
And then all fees are stated in their pricelist including extra 3% per CC/PayPal payments over $500.

Did you read the thread and Sedo Pricelist, see screenshot above, that applies only to people using Sedo's escrow service, not marketplace transactions. Sedo themselves admitted on Trustpilot that they were not being clear about what they charge.

 

[Jurgen Wolf]

I had many marketplace 4F CC sales as well.
This payment processing fee is not a problem for serious endusers... and it is applicable or included in the main fee everywhere.

 

[carob]

I had many marketplace 4F CC sales as well.
This payment processing fee is not a problem for serious endusers... and it is applicable or included in the main fee everywhere.

Included in is the key phrase - you cannot see the 3% addional fee until after you click the buy button, so it is not included at Sedo as you would expect most places, it is an additional fee. It really would not be difficult for them to tell you this before you click the buy button.

 

[Jurgen Wolf]

https://www.escrow.com/fee-calculator
Stated as additional fee.

Payoneer Escrow (when it was alive) also charged it as additional.

 

[carob]

https://www.escrow.com/fee-calculator
Stated as additional fee.

Again, that refers only to the Escrow service, not the marketplace sales.

 

[Jurgen Wolf]

I don't see any reasons to use various marketplaces at all, regardless of how they process their sales.
A few years already I'm just parking my domains and negotiating with buyers directly, without any intermediaries.

 

[Jurgen Wolf]

Did you read the thread and Sedo Pricelist, see screenshot above, that applies only to people using Sedo's escrow service, not marketplace transactions.

It is applicable for marketplace as well.

https://sedo.com/us/what-we-offer/price-list/
Handling Fee
There is a 3% handling fee added for any domain purchase over $500 when using Alipay, PayPal and Credit Card.

 

[carob]

Sedo themselves admitted on Trustpilot that they were not being clear about what they charge.

It is applicable for marketplace as well.

https://sedo.com/us/what-we-offer/price-list/
Handling Fee
There is a 3% handling fee added for any domain purchase over $500 when using Alipay, PayPal and Credit Card.

Looks like they read this thread and improved their info. Let's see if that fee is now displayed in the checkout process as it should be.

When I started this thread Sedo's Trustpilot rating was down close to 1. Now it is up past 4 and climbing.