Trade Me is eliminating bank transfers as a payment option and removing success fees for casual sellers, responding to growing concerns about scams and competitive pressure from platforms like Facebook Marketplace. The changes, announced this week, will see the introduction of new buyer service fees and a wider rollout of the Ping payment system, offering buyer protection up to $5000.
Currently, Trade Me charges sellers a 7.9% success fee on final sale prices. Under the new structure, that fee will be removed for casual sellers. However, buyers purchasing items over $20 will face a service fee: 99 cents for purchases between $20.01 and $100, $1.99 for sales between $100.01 and $250, and $4.99 for items exceeding $250. Approximately 44% of trades on the platform are already under $20, meaning a significant portion of transactions will not incur a buyer fee.
The move to eliminate bank transfers comes after reporting by Stuff highlighted a surge in scams facilitated by the payment method. Trade Me spokesperson Lisa Stewart stated that 90% of scams the company was unable to resolve last year involved bank transfers, as these payments occur outside of Trade Me’s secure system, making intervention difficult. “Once a buyer sends money this way, those funds are often gone for good, and we have zero visibility over the transaction,” Stewart said. The company is instead promoting Ping, which carries a 2.19% transaction fee for the seller, and cash as secure alternatives.
Massey University marketing expert Bodo Lang suggested the changes are likely a response to the increasing popularity of Facebook Marketplace, which does not charge fees and offers no buyer protection. “Facebook Marketplace has certainly been snapping at their heels,” Lang said. He added that the fee structure shift could also improve pricing transparency for sellers. “It’s not always effortless for someone who’s selling something to understand exactly what the fee will be.” Lang also noted that younger generations may prefer the convenience and direct communication offered by social media platforms like Facebook Marketplace.
Trade Me acknowledged Facebook Marketplace as a major competitor. Stewart stated, “Like all businesses, we do preserve an eye on what they’re up to. But this is about listening to what our customers want and creating the best experience that we possibly can.” She emphasized that the changes are intended to position Trade Me for continued success, building on its 27-year history.
The buyer fees will be used to maintain the platform and support local customer service, according to Stewart. As an example, she cited a scenario where a seller listing a pram for $100 would currently pay around $8 in success fees. Under the new system, they would pay approximately $2 in Ping fees, whereas the buyer would incur a 99-cent service fee. “In total, our customers will be paying about $5 less in fees for a transaction of about $100,” Stewart said.
The changes do not affect sales of vehicles, property, or transactions conducted by professional sellers.
