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Thread: Volusion Transaction Fees

  1. #1

    Volusion Transaction Fees

    Just ran into this and wondering if there has been announcement about Volusion's new price structure.

    Attachment 980

    It has a 2% transaction fee on top of the monthly price, which is similar to the old Yahoo Stores price structure.

    It's explain in the page that there are no more bandwidth fees and how they feel about those.

    Do you charge bandwidth fees?
    No. Our goal is your success! We believe transaction fees are a more transparent and predictable usage metric. You work hard to drive traffic to your business. If that traffic does not always convert to sales, then you shouldn’t be charged extra.
    So, wondering how are the existing V clients being affected by this ?
    Jimmy Rodriguez
    3dcart.com

  2. #2

  3. #3
    Quote Originally Posted by Jimmy View Post
    It has a 2% transaction fee on top of the monthly price, which is similar to the old Yahoo Stores price structure.

    So, wondering how are the existing V clients being affected by this ?
    If Volusion hits us with 2%, then that is the last straw. We are gone. We are in a very tight margin industry, and many of our orders barely yield 2%. I'm not giving that to Volusion. I need to find out more about this quickly because if we are going to have to switch platforms before Christmas, we have to start right now.

    I truly hope that I am missing something and they aren't really doing this or the implications aren't as bad as they seem. Wow!

  4. #4

  5. #5
    So much for what is on their current pricing page:

    Do you charge transaction fees?
    No. We don't believe in transaction fees. You worked hard for your profits – you should get to keep them.

    For all of its faults, we have not had any plans to leave Volusion. However, if they are going to start charging us a 2% transaction fee, we will leave without hesitation. Our bandwidth overage charges are already ridiculous and a 2% transaction fee would be hundreds of dollars per month even more than what we are paying for that. Not going to happen.

  6. #6
    Has anyone actually asked Volusion for the details?

    I am not happy that on the heels of this post, I received a marketing email from 3dcart. Feels too pushy.
    Last edited by MelanieF; 07-19-2017 at 12:25 PM.

  7. #7
    I, too, received the email from 3DCart about this from Walter Quinn "Director of eCommerce Success"

    I'm sure you saw the recent announcement from Volusion regarding their plan changes to include transaction fees up to 2%
    So I replied asking for a link to this announcement and got no response.

    I asked Volusion directly about this and the response I got was:

    Hi Matson, this is untrue. Volusion charges no fees for transactions (that is solely up to your payment processor) and has no intention of doing so.
    So I replied again to Walter's email letting them know what Volusion said and asking for clarification. The result was an email from a sales rep with a link to THIS thread.

    As of right now, I do not believe Volusion is planning any transaction fees and 3DCart jumped on a rumor. If anyone learns anything different, please share.

  8. #8
    Quote Originally Posted by MelanieF View Post
    I am not happy that on the heels of this post, I received a marketing email from 3dcart. Feels too pushy.
    Sorry about that, we did send out an announcement for the upcoming release of Version 8, there shouldn't be any marketing offer on it. If you can share your email with me via private message, I'll be glad to check and remove you from any mailing lists.
    Jimmy Rodriguez
    3dcart.com

  9. #9
    Quote Originally Posted by MelanieF View Post
    Has anyone actually asked Volusion for the details?

    I am not happy that on the heels of this post, I received a marketing email from 3dcart. Feels too pushy.
    I sent a message to Volusion this morning to find out if this is for new accounts only or if it will apply to existing customers and, if the latter, when the change would be made for my store. We have a semi-dedicated Enterprise plan with an annual contract, so I am hoping that we have at least until our existing contract expires (May 2018) before they can try to stick us with transaction fees.

    I also received a marketing email from 3dcart jumping all over the transaction fees - which struck me as quite akin to ambulance chasing lawyers

  10. #10
    This was the response from Volusion: "Hello there. This is something that we are putting in place for our new V2 platform. That platform will not have bandwidth allotment, instead we are moving towards transaction charges. All existing customers that are not on a V2 store will not pay transaction charges."

  11. #11
    Looks like we won't be going to V2.

  12. #12
    The moderator didn't approve my comment from yesterday with copies of responses I received from Volusion (which turned out to be wrong thanks to @Katherine's post)

    However, just received the new email today clarifying the pricing structure and V2. Sounds like the 3Dcart email and this thread (amongst others) got them scrambling over at Volusion.

  13. #13
    Volusion is trying so hard to kill their business - why?

    Bandwidth is dirt cheap. And they are moving V2 over to Amazon hosting.

    The only question is when will we be forced to move over to V2. Once it gets enough critical mass, Volusion will not want to pay the extra cost of a legacy software that is hard to maintain.

  14. #14
    Quote Originally Posted by ritchey View Post
    Volusion is trying so hard to kill their business - why?

    Bandwidth is dirt cheap. And they are moving V2 over to Amazon hosting.

    The only question is when will we be forced to move over to V2. Once it gets enough critical mass, Volusion will not want to pay the extra cost of a legacy software that is hard to maintain.
    I would need to see a side-by-side analysis comparing this new pricing structure with what we are currently paying. Initially, it sounds like it would cost us more to switch to V2 than our current fixed pricing arrangement.

    As I understand it, if we do $15,000 in sales per month, or a little less than $4,000 a week, then I assume our costs per month would be $300. Currently, we are paying $275 plus tax for a semi-dedicated plan with no additional bandwidth charges.

    If our revenue goes up to $1,000 per day, then monthly sales would be $31,000. Two percent of that climbs to $620 just to cover Volusion's fees. Not sure how they can justify this plan versus their current plan, much less against their principal competitors. We haven't even seen what V2 can offer, but I'm already not very keen on it since it digs deeper in our wallet.

    Marc

  15. #15

    V Response

    Quote Originally Posted by Lightning2000 View Post
    I would need to see a side-by-side analysis comparing this new pricing structure with what we are currently paying. Initially, it sounds like it would cost us more to switch to V2 than our current fixed pricing arrangement.

    As I understand it, if we do $15,000 in sales per month, or a little less than $4,000 a week, then I assume our costs per month would be $300. Currently, we are paying $275 plus tax for a semi-dedicated plan with no additional bandwidth charges.

    If our revenue goes up to $1,000 per day, then monthly sales would be $31,000. Two percent of that climbs to $620 just to cover Volusion's fees. Not sure how they can justify this plan versus their current plan, much less against their principal competitors. We haven't even seen what V2 can offer, but I'm already not very keen on it since it digs deeper in our wallet.

    Marc
    FWIW, I received this email from Volusion this afternoon from its founder:

    Dear Marc,

    It's been a great year for Volusion. We've rebranded and refocused, become incredibly open with Q+A and are truly focused on customers thanks to our Culture Code. Still, there's always something we can do better.

    With the announcement of Volusion 2, we've been getting some great questions, mostly around timing, migration and cost. I'd like to take a moment to address those topics directly:
    Timing

    We aren't quite ready to release a migration schedule/timeline for existing customers. If you're already a Volusion customer on the rich classic product, we won't ever force you to move to V2 if you don't want to switch.

    Switching over will be on your time, and on our dime. What do we mean by that? First, we'll begin reaching out in 2018 based on fitness. For example: the first group of customers might have less than $50k annual sales, or we might use industry or feature-usage to drive the grouping and phasing. Second, we will move as much of your store as we possibly can. Which brings us to the next topic...
    Migration

    Should you decide that V2 is a better solution for your business, we'll do all the heavy lifting for you. This means we'll help move your entire history (customers, orders, payments, etc.).

    We may also suggest a new theme that's as close as possible to your existing one, or we might recommend a newer look to boost your sales on mobile. You will be part of these decisions every step of the way! If something can't be migrated using software, we'll dive deep to see if there's a way to move it using good ol' fashioned people power. (Given that it doesn't take a gazillion hours. That's a bit too long!) You'll then have a chance to test all aspects of your V2 store before going live.
    Cost

    There are a few parts to this, but please know that our goal isn't to charge existing loyal customers any more than they pay today. First: will your monthly plan cost more? Absolutely not. In fact, Volusion hasn't raised monthly subscription rates for existing customers, ever.

    Second: will you have to pay more for stuff like bandwidth? Nope! We're doing away with bandwidth if you move to V2, but we may choose to create a grandfather clause. For example, if you've been a Volusion customer for at least one year, we'll give you the option to switch to a transaction-based model or to carry over your existing bandwidth-based structure.

    Wait, didn't you say you were doing away with bandwidth charges? Yes, and we won't be monitoring it for billing purposes in V2 either. So what we'll most likely do is take an average of your monthly fees for a period of time (to be determined, but likely 12, 24, 36 or 48 months) and use the average.

    We call this a fixed-bandwidth model, and we're already piloting it with a few merchants. If you're interested to see what it looks like — or want to take Volusion 2 for a test run sooner — please fill out this form and we'll follow up with details.

    Thank you for being a Volusion customer. We are looking forward to being part of each and every customer's success story for years to come!

    Please feel free to reply to this message to let us know what you think.

    — Kevin Sproles, Founder & CEO

    So, I signed up for the sandbox and will see what it offers as compared with the present platform. My guess is that they may roll it out by later summer, just to get a user reaction. Qetail, who designed our responsive template and is currently revising our buttons, is aware of the new platform and will help us address any issues that might come up.

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