Dec 10, 2008 Posted by BoxCycle on Dec 10, 2008 in Site Updates | 0 comments

Improved Commission Structure for Box Sellers

As variety of interested box sellers expanded we’ve seen cases that don’t fit well with our initial commission structure.  We would like BoxCycle to be a marketplace of choice for all used and new box sellers from small retailers and movers to recyclers and box manufacturers to used box resellers.  To remove unnecessary road blocks we’ve made the following adjustments to our commission structure:

• Cap list price based commission at $1.00 per box
• Cap list price based commission at $100 per order
• 5% commission on amounts beyond the caps
• Reduction in list prices for higher cost boxes

We have some commission examples in the Seller FAQ to help you understand the new structure.

Per Box Cap

A flat percentage based commission is simple and works well for the limited variety of boxes we focused on at launch.  However, it makes it difficult to create competitively priced listings for more expensive boxes, especially when boxes are nearly new.  This cap makes it easy and profitable to sell large shipping boxes, gaylord boxes, and specialty boxes on BoxCycle.

Per Order Cap

A typical order for moving boxes is between 15 and 100 boxes.  There is no typical order for shipping boxes, but they are generally purchased in much higher quantities.  A pure percentage based commission is quite inefficient for such large orders since it does not accurately represent our costs and makes it difficult for sellers to offer competitive prices while receiving sufficient returns.  This cap addresses the problem and makes our marketplace a great choice for large sellers like box manufacturers and resellers of used shipping boxes.

5% Commission Beyond Base

We already charge the reduced 5% commission for price premiums and custom pricing discussed in previous posts.  We’ve expanded this charge to any amount not covered by the larger base commission.  The 5% fee helps cover our variable costs without impeding seller’s profit requirements.  Please refer to the Box Seller FAQ for examples.

Reduction in List Prices

We have reduced list prices for many of the higher priced box types.  Seller profits will either remain the same or go up with the new list prices due to the $1.00 commission cap.  Sellers are welcome to set higher prices when they deem appropriate using either price premiums or custom prices.