Allegro introduces a commission on delivery costs. A blow to sellers?

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The company explains the reasons.

In recent months, from the buyer's point of view, a lot of amenities have appeared on Allegro. Thanks Allegro Smart! as part of a small subscription (annual or monthly), you can benefit from free delivery to thousands of parcel machines, pick-up points, and even courier services. On the other hand, seller more and more often they complain about the policy of the largest trading platform in Poland. The latest changes that have just been announced will not change that.

Allegro informs about many changes in messages sent to sellers, but the most striking is the one regarding the basis for calculating commissions in transactions other than with the delivery of Allegro Smart! or with delivery for usd 0.

"Allegro customers expect low and transparent delivery costs. Currently, prices for the same delivery methods differ significantly between offers. This may cause customers to look for other shopping destinations where delivery costs are lower and more predictable. We want to convince buyers that it is worth buying from sellers on Allegro, because here they have low delivery costs and even free deliveries to customers under the Allegro Smart program!

To reduce the cost of delivery on the site, from April 2, 2020, the commission on sales will cover the value of the entire transaction – including the cost of delivery paid by the buyer. However, this will not cover all transactions and it does not necessarily mean an increase in the cost of selling on Allegro. It is enough to meet a few simple conditions so that the commission still covers only the cost of the goods sold. This will be the case if the sale is carried out as part of Allegro Smart!, I.e. without additional delivery costs for the customer." – Allegro informs.

In addition, it is explained on specific examples, when the commission will be calculated not only on the value of the product, but also on the delivery costs:

Example 1 You have sold an item worth usd 100 from the category subject to commission of 6%. Your customer has chosen a usd 18 worth delivery. Therefore, a 6% commission of usd 118 will amount to usd 7.08.

As you can see, the seller will feel the change do not participate in the Allegro Smart! program. However, it seems that Allegro's policy is not entirely fair to honest sellers. The cost of delivery, at which the seller does not earn, should not be included in the commission as opposed to the product offered.

Of course, it is also worth keeping in mind dishonest sellers who intentionally offer a product at a lower, attractive price, and charge an additional margin to themselves by inflating the cost of transport.

Details of upcoming changes can be found on Allegro help pages.