Bonanza Drops Controversial Shipping Fee In Hopes Of Spurring Holiday Sales
Bonanza marketplace is reversing course on controversial $2 shipping fee introduced last year as peak season shipping rates increase and shoppers look for holiday deals.
The move was announced along with other holiday updates in a company blog post.
We know how important it is to reduce costs and maximize sales. That's why we’re excited to announce several new initiatives designed to make Bonanza the most seller-friendly platform this holiday season:
- Eliminating the $2 Shipping Assessment Fee
We understand that every dollar counts. To help lower your expenses and streamline your operations, we are removing the $2 shipping assessment fee starting in November. This last assessment you will receive is November 1st so this means more savings for you and a simpler, more cost-effective process.- Vercado Expert Edition—For Only $50 Per Month
For those using or considering Vercado, we’re offering an incredible upgrade opportunity. Purchase the Vercado Standard Edition ($50/month), and we will automatically upgrade you to the Vercado Expert Edition—at no extra cost. That’s a $120/month value for just $50/month, giving you access to advanced tools to grow your business, including CRM and marketing features.- Tripling Our Marketing Efforts
To drive more buyers to your products, we’re tripling our marketing investment. You’ll benefit from increased traffic and visibility, helping you reach new customers across the web. This is part of our commitment to make Bonanza your go-to platform for reaching eager holiday shoppers.- Matching Your Spend on Bonanza Ads Dollar for Dollar
From now until October 15th, we’re offering an unmatched promotion—whatever you spend on Bonanza Ads, we’ll match it dollar for dollar. This is your chance to double your advertising power and boost your product visibility during the critical holiday season.
The $2 fee assessed on orders where the seller chooses to purchase a shipping label outside of Bonanza was introduced in November 2023 and received significant seller pushback.
Sellers were initially told that they would be exempt from paying the additional fee if they used "approved API partners like PirateShip, Shipstation, ShippingEasy,and more" but Bonanza reneged on that promise and hit sellers with unexpected fees - then launched into full censorship mode, removing and blocking any negative comments on the company's blog and forums.
Sellers who stuck around, but still wanted to use third party sources to purchase labels, likely baked that $2 fee into their pricing somewhere - and now that the holidays are here, with carriers instituting peak season surcharges, something's gotta give if Bonanza wants to stay price competitive with other marketplaces.
Unfortunately, the blog post doesn't specifically say if this is only a temporary reprieve for the holidays or a permanent change. Many sellers lost trust in the platform after the previous shipping and censorship shenanigans, so they may understandably be skeptical about this announcement.
That lost trust is also likely to make cost per click advertising a hard sell, not to mention the non-refundable deposit & possibly questionable FTC compliance that sellers should be on the lookout for as well.
Will Bonanza dropping the $2 shipping assessment fee convince you to list more items on the site or drop your prices for the holidays? Let us know in the comments below!