Yet another commission increase.

bluerock · Mar 31, 2015

Yet another increase in minimum sale commission to £45 after just increasing it to £35 a few months ago.

"The minimum commission fee for category 1 listings will be updated to 60 EUR/USD (45 GBP) compared to the previous amount of 50 EUR/USD (35 GBP)"

So £45 to sell a £99 domain. Bye Bye Sedo

Admin · Mar 31, 2015

You beat me to it, I've just received the emails too:

In cases where our clients are obliged to pay VAT for any sale or purchase, this amount will now be added on top of the commission fee whereas previously it was included in the commission fee (if applicable). This new addition will only affect sales/purchases of our clients who are based in the EU (and trading as a private person, without a VAT number).

The minimum commission fee for category 1 listings will be updated to 60 EUR/USD (45 GBP) compared to the previous amount of 50 EUR/USD (35 GBP).

The new minimum bid/price will be 90 EUR/USD (75 GBP) for category 1 listings, compared to the previous amount of 60 EUR/USD (45 GBP). This means that you will only receive bids of 90 EUR or higher on your domains from now on.

The minimum commission fee for category 2 listings will be updated to 230 EUR/USD (170 GBP) compared to the previous amount of 200 EUR/USD (140 GBP).

Click to expand...

New price list online

On April 9, 2015, we will be changing the minimum fee and minimum bid amounts for the first time. For customers liable for payment of VAT, there will also be changes in how the sales commission is handled for tax purposes. The new prices take effect on April 9, 2015. They are already accessible at www.sedo.com/preview-pricelist.

So they will now charge you VAT on top as well (unless you can reclaim it as a registered business)

Admin

bluerock · Mar 31, 2015

admin said:
So they will now charge you VAT on top as well (unless you can reclaim it as a registered business)

Admin

They dont say whether HMRC receives the vat or whether its benefits Germany.
After just raising the min to £35 they again increase it to £45. Completely unjustified.

foz · Mar 31, 2015

Do people still list with them?

Work your own leads on DNS (commission free).

grantw · Mar 31, 2015

Where is this text coming from, I'm not seeing it in the email or the page it links to?

"In cases where our clients are obliged to pay VAT for any sale or purchase, this amount will now be added on top of the commission fee whereas previously it was included in the commission fee (if applicable). This new addition will only affect sales/purchases of our clients who are based in the EU (and trading as a private person, without a VAT number)."

Cheers

bluerock · Mar 31, 2015

grantw said:
Where is this text coming from, I'm not seeing it in the email or the page it links to?

"In cases where our clients are obliged to pay VAT for any sale or purchase, this amount will now be added on top of the commission fee whereas previously it was included in the commission fee (if applicable). This new addition will only affect sales/purchases of our clients who are based in the EU (and trading as a private person, without a VAT number)."

Cheers

Its in an email titled "Changes to Sedo's VAT and minimum commision fees". Not sure if you have it.

bensd · Mar 31, 2015

I got an email stating:

"On April 9, 2015, we will be changing the minimum fee and minimum bid amounts for the first time."

Retired_member41 · Mar 31, 2015

Isn't it the vat moss thing. So Germany will get the vat no doubt.

Just wait for a bid then change the nameservers to your own parking page.

grantw · Mar 31, 2015

bluerock said:
Its in an email titled "Changes to Sedo's VAT and minimum commision fees". Not sure if you have it.

Cheers, I've got a different email.

Was hoping to see something about them no longer robbing VAT registered sellers by taking a % of the VAT amount and expecting the seller to reimburse the tax man! No such luck!

Grant

martin-s · Mar 31, 2015

The killer for not using Sedo is their integration with the likes of GoDaddy.

Most people don't know to go to Sedo, but they do know how to search for domains at the big registrars.

What we need is another firm to compete on that access.

foz · Apr 1, 2015

martin-s said:
The killer for not using Sedo is their integration with the likes of GoDaddy.

Most people don't know to go to Sedo, but they do know how to search for domains at the big registrars.

What we need is another firm to compete on that access.

Afternic has that deal with GoDaddy.

bluerock · Apr 4, 2015

Ive just asked Sedo the following questions. When/if I receive an answer I'll post it here.

"Can you please explain what would happen to the following 2 sales:
Domain sold at Buy Now for £500 with seller not vat registered.
Domain sold at Buy Now for £500 with seller vat registered.

Also regarding the vat Sedo collect is this paid to HMRC or the German equivalent."

CatchDrop · Apr 11, 2015

bluerock said:
Ive just asked Sedo the following questions. When/if I receive an answer I'll post it here.

"Can you please explain what would happen to the following 2 sales:
Domain sold at Buy Now for £500 with seller not vat registered.
Domain sold at Buy Now for £500 with seller vat registered.

Also regarding the vat Sedo collect is this paid to HMRC or the German equivalent."

Interested to know Sedo's response to this

bluerock · Apr 13, 2015

mattyr45 said:
Interested to know Sedo's response to this

Heres what Ive been told:
"I know that it can be frustrating when anything regarding commission increases lands in your inbox, but hopefully I can assuage you by clarifying that this isn’t an increase in the commission rates per se, but an increase in the minimum amount of commission we must charge for processing transactions. There will be many transactions which will not be at all affected by this.

The reason we’ve had to make this change is that the current price structure was not economically viable for us. In other words, the amount it costs us to process these transactions was not being covered by our minimum commission fee. As with any business, we need to remain competitive, especially when we are always trying to invest more in our product in order to create a better selling platform for our customers and ever more exposure for their domains.

With regards to the VAT changes, it is simply that we are now charging commission with VAT on top, and at the rate charged in the country where the customer is located.

That is to say, a domain sold at 1000 GBP and which is subject to 15% commission would receive a commission invoice for 150 GBP plus 30 GBP VAT, 180 GBP in total, in the case that the customer is in the UK where VAT is charged at 20%.

As for your two examples, both would be charged the same rate, assuming the sellers are located in the same country, it’s just that the seller who is VAT registered can claim this back (as far as I understand VAT registration)."

bluerock · Apr 13, 2015

"Also regarding the vat Sedo collect is this paid to HMRC or the German equivalent."

This question was not answered.

martin-s · Apr 13, 2015

Hands up if you hate Sedo.

They bombard us with $99 auctions, but with commissions so high, it's barely worth selling a domain for less than about £250-300.

Lucky Luke · Apr 13, 2015

Acorn & DomainLore are great for trade sales, but where else can you go to put up a 'domain for sale' sign to the general public?

bluerock · Apr 13, 2015

http://domainnamesales.com/home

https://www.parkingcrew.com

UncleBob · Apr 13, 2015

bluerock said:
"Also regarding the vat Sedo collect is this paid to HMRC or the German equivalent."

This question was not answered.

in fairness they can't, or sort of have - if I have understood this VAT MOSS thing right, VAT is now at point of purchase, not point of sale.

so, if a buyer purchases in Germany, VAT goes there, UK, VAT goes there.

I am guessing Sedo have registered in all countries they trade in for this to be the case, rather than going the 'all in one' option that was on offer.