Selling on Whatnot is a fantastic way to connect with buyers through live auctions and marketplace listings. The platform has gained popularity among resellers, collectors, and entrepreneurs looking to turn their inventory into profit. However, it’s important to understand Whatnot’s fee structure to ensure you’re pricing your items correctly and maximizing your earnings. This guide breaks down commission rates, payment processing fees, and category-specific charges while sharing valuable tips on reducing costs and optimizing profits.
Standard Commission Fees on Whatnot
Whatnot applies a standard commission fee of 8% on the final sale price of most items. For example, if you sell an item for $100, Whatnot will deduct $8 as a commission fee, leaving you with $92 before any additional costs are applied. The commission fee supports Whatnot’s platform operations, including marketing, customer support, and buyer protection.
Category-Specific Commission Rates
While the standard commission fee is 8%, some categories have lower commission rates to benefit sellers dealing in specialized goods. For example, items listed under the “Coins & Money” category have a reduced commission fee of 4% instead of the standard 8%. For example, if you sell a collectible coin for $200, your commission fee will only be $8, compared to $16 for items in other categories.
Whatnot also applies a tiered fee structure for high-value items. If you sell an item over $1,500, you will only be charged the standard 8% commission on the first $1,500, while the remaining balance is fee-free. For example, if you sell an item for $2,000, you would pay an 8% commission on $1,500, which equals $120, but the remaining $500 is exempt from fees. These commission adjustments can make a significant difference for sellers dealing with rare, high-ticket items.
Payment Processing Fees on Whatnot
In addition to the commission fee, Whatnot charges a payment processing fee on all transactions, similar to payment services like PayPal and Stripe. The fee is 2.9% of the total transaction amount, including taxes and shipping, plus an additional $0.30 per transaction.
For example, if a buyer purchases an item for $50, with $5 shipping and $3.50 in taxes, the total transaction amount would be $58.50. The payment processing fee would be 2.9% of $58.50 plus $0.30, which comes out to $1.99. When combined with the 8% commission fee on the item price, total deductions from the sale would be $5.99, leaving the seller with $44.01 in earnings before considering shipping costs.
Comparing Whatnot Fees to Other Reselling Platforms
When compared to other online marketplaces, Whatnot’s fees are relatively competitive. eBay typically charges a commission fee between 10% and 15%, plus a 2.9% payment processing fee. Poshmark has a flat 20% commission fee, making it one of the more expensive platforms for sellers. Mercari applies a 10% commission fee plus a 2.9% payment processing fee, similar to Whatnot. Overall, Whatnot’s 8% commission and 2.9% processing fee make it an affordable option for resellers, especially in categories with reduced commissions.
How to Reduce Whatnot Seller Fees
While Whatnot’s fees are unavoidable, sellers can use several strategies to minimize their impact and increase profitability.
Take Advantage of Fee Promotions
Whatnot occasionally offers discounted commission rates or limited-time promotions to attract more sellers. Keeping an eye on Whatnot’s announcements and taking advantage of promotions when they are available can significantly reduce your selling costs.
Bundle Multiple Items Together
Since Whatnot charges a flat $0.30 per transaction in addition to its commission and payment processing fees, sellers can reduce costs by bundling multiple items into one sale. Offering bundle discounts or promotions like “Buy More, Save More ” encourages buyers to purchase multiple items in a single transaction, reducing the number of individual sales where the $0.30 fee cuts into your profits.
Price Items Strategically
Sellers should always factor in commission and processing fees when setting prices. To attract buyers while maintaining strong profit margins, consider using psychological pricing techniques, such as listing an item for $19.99 instead of $20.
Sell High-Quality Products
Since Whatnot’s processing fee is percentage-based, selling higher-priced items helps reduce the overall percentage of fees paid. For example, a $10 sale collects roughly the same $0.30 transaction fee as a $100 sale, making low-cost items less profitable. Selling higher-value items also allows sellers to take advantage of Whatnot’s tiered fee structure, especially for items above $1,500.
Common Mistakes Sellers Make on Whatnot
To maximize earnings, sellers should avoid these common mistakes on Whatnot:
Underpricing Items Without Accounting for Fees
Some sellers set low starting bids without factoring in commission and processing fees, leading to lower-than-expected profits. Therefore, it is important to always calculate potential fees before listing items at auction.
Not Using Combined Shipping Discounts
Whatnot allows buyers to combine multiple purchases for discounted shipping, but some sellers don’t actively promote this feature. Offering a flat rate or free shipping on bundled purchases can attract more buyers and increase overall order value.
Failing to Engage During Live Auctions
Since Whatnot is a live selling platform, seller engagement is crucial. Ignoring buyer questions, not showing products clearly, or lacking enthusiasm can lead to lower bids and reduced sales volume. Successful sellers actively interact with their audience, answer questions, and create a fun, competitive auction environment.
Start Selling on Whatnot
Whatnot’s fee structure is competitive compared to other platforms, and its unique live auction format allows sellers to generate higher engagement and better sales outcomes. While fees do eat into profits, sellers who strategically price their items, take advantage of free promotions and bundle multiple sales together can increase their earnings and minimize losses.
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