Last updated on September 12th, 2018,

New fees for BitBoost’s marketplace: a brief explanation.

new-fees

We have determined a way to charge sellers even less, allowing more people to use our app! We’re so excited to be finalizing and testing our code this week. This means the new model will be a part of our soft release happening on Monday, 25 June!

The old way

Almost a year ago, we published our first blog post about how our fees would work once our marketplace app was live. We considered two things. First, for this project to be sustainable, it had to make some profit. Secondly, the fees had to make sense for users. We needed a simple, inexpensive, pricing model so people could use our app. We said “Every seller pays one dollar in BTT (BitBoost token) for every listing. This will be the only fee required to use our blockchain-based marketplace, and goes to support BitBoost…These minimal fees will be our financial fuel to do that.” At the time, one dollar per listing sounded like a pretty good deal!

Why the change?

For the last year, we’ve been listening to our community and considering potential user issues with fees. We came up with several things. For instance, what if someone posts 100 listings and none of them sell? That person just lost $100! Or, what if you’re from a developing country and $1 per listing is too much?

To fulfill our mission of making e-commerce easier for everyone, we had to make a change. Our new model makes our app more affordable and opens up a global marketplace to more people.

What has not changed?

    • Buyers pay nothing to BitBoost.
    • Sellers pay a listing fee to BitBoost.
    • The listing fee is paid in BBT, the internal currency of BitBoost Marketplace.

What is NEW?

    • Sellers can list as many items as they want without paying an upfront fee.
    • Sellers only pay listing fees once an item has been sold.
    • Sellers will be charged less than 1% of the cost of each item that they sell.

Seller/Buyer Listing Cycle

Let’s say that “Sarah” wants to sell items on BBM (BitBoost Marketplace), so she buys some BBT on an exchange. Since BBT are a cryptocurrency, the price will vary from day to day. In this example, we’ll say the cost is 0.20USD per token. Sarah spends $20 and receives 100 BBT which she puts into her BBM wallet.

Later that week, Sarah opens the BBM app and creates a listing to sell an item.

Scenario 1: A buyer wants to buy the item in Sarah’s listing.

The buyer clicks BUY and the app takes the purchase price (paid in ETH) from the buyer’s wallet and puts the ETH into a smart contract.

In a few days, when the buyer receives his purchase, he goes back into the BBM app and clicks the Finalize Purchase button. This results in two events. First, the app collects a listing fee from Sarah’s wallet. Second, the app releases the ETH in the smart contract to Sarah’s wallet.

Sale completed!

Scenario 2: If no one buys the item in Sarah’s listing.

The listing expires and Sarah doesn’t have to pay any BBT. However, the listing information is stored on Sarah’s expired listings page in BitBoost Marketplace so she can easily repost this listing if she wishes to do so. She’ll find a buyer next time!

Details of the New Pricing Model

Now, our listing fee is less than 1% of the cost of goods sold. If the cost of each item is $9.99 or less, the Seller will only pay 0.10 USD. If the cost of each item is $10 or more, the Seller will only pay 0.9% of the cost of each item sold. To show how it works, we offer this chart:

Listing fee

According to our old model, if a seller put an item up for sale for $10 on BBM, he’d have to pay $1 in BBT. That would be 10% of the sale, if it sold at all. If it didn’t sell, he would lose $1. Now, he only has to pay 0.09 USD, which is less than 1% of the sale, and he only pays when he makes a sale!

What if my listing contains more than one item?

No problem. Sellers now pay per item sold. Selling items for less than $10 each? You’ll pay 0.10 for each one sold. Items $10 and over? You’ll pay 0.9% for each item sold.

Let’s say that Sarah wants to sell 10 lamps at $50 each. For each lamp she sells, she’ll pay 0.45 USD. If she sells 10 lamps, she’ll pay $4.50 in BBT for the listing and collect $500. If she only sells 5 lamps, she’ll pay $2.25 in BBT, collect $250, and the remaining lamps will show up in her Expired items list so she can easily relist those later.

What else does BitBoost have planned?

We will always be considering how to improve our app, and that includes our pricing model. The BitBoost team believes that users should have options of how to pay for items on the marketplace, as well as listing fees. BitBoost is working on making it possible to buy BBT directly from the BBM wallet. Someday, maybe soon, we will offer more currencies, a stablecoin, or even fiat payments. If there is a reasonable way that BitBoost can innovate and improve our products, we will do it!

We listen to users’ needs! Have suggestions? Contact us at [email protected]