Chrono24 fees: how much and why?

Introduction

Selling on Chrono24 is not free. But which commission and selling fees are charged and why? In this blog we will go in-depth about the selling fee you will be charged with when selling on Chrono24. Whether you are a private seller or a dealer. You will be charged with at least a selling fee. How much and why for each? We got you covered. In the end, we will even tell you a new alternative marketplace where you will pay less fees when selling a watch.

Why are seller fees charged?

Thousands of buyers search daily on Chrono24 to find their next watch. Being a "marketing channel" is basically the reason why fees are charged. At least, that is what Chrono24 thinks it is worth. And around 78.000 sellers agree to at this moment of writing.

This platform is huge. We have described a background story in Chrono24 review blog. As such it is a great platform for marketing your watches to a broad audience. When you have a luxury watch for sale, you have a good chance people will notice your offer on Chrono24. But the fees are high. In our opinion a bit too high. But before we go there, what is it they are actually doing? 

What you do get as a seller:

Allright, so we will be paying something. But what do you get as a seller?

• Mainly marketing and traffic. Since there are about 400.000 potential buyers daily on the platform
• An escrow checkout. Providing protection to the buyer and seller (i.e. the watch is sent and the money is appropriately received)
• A customer service that can help you and is available in multiple languages
• Support when there is something wrong with the watch upon receipt

What you do not get as a seller:

Just to let you know, there are some things you will not get:

• No shipment support. You have to arrange shipping yourself. Which can be trick, especially doing intercontinental shipments
• No insurance support. Which might be difficult to arrange (and expensive too). FedEx and DHL only insure packages up to €5.000 and have a lot of terms and conditions to issue a claim. So please read these conditions properly!
• Customs arrangements and exporting a watch. Do you know what to look for and which institutions to involve? 
• You have to take care of communication with potential buyers. That should be fun right? Enjoy it...
• What if the buyer claims the watch is fake, incorrect or damaged upon receipt? We know from experience packages can easily be damaged
• Private sellers are encouraged by Chrono24 to meet in person with the buyer to perform the sale. We would however strongly advise against that for safety reasons. Unfortunately it is more difficult for private sellers to sell on Chrono24. 

Now you are set about right. You know why you will be charged fees. Now look at the fees secondly. And let's see if they sound reasonable.

Read our other blog about our experience and selling a watch on Chrono24 as well.

Chrono24 dealer fees

The Chrono24 dealer fees are a monthly subscription (from €69 to €1.999 per month) and a commission is charged to you for each watch sold (between 2%-8%). These subscription fees and commission have ranges. These ranges will be further broken down below.

Monthly subscription fees

The monthly subscription fees range from €69 to €1.999 per month. The exact amount is driven by your subscription type and the number of watches you want to list on the platform. You can choose between the subscription types Light, Pro and Premium. Number of watches listed start from up to 25 watches to up to 1.000 watches. If you want to list more than 1.000 watches, you have to opt in for the Pro subscription type and have to contact the sales department to agree on the price.

The following table presents the subscription prices per month:

 

Chrono24 dealer fees: monthly subscriptions

When you want to become a dealer on Chrono24, you have to pass several tests. Mainly handing in documents about your company and proof you are actually a real person. Becoming a "trusted dealer" takes a bit more. We will touch on this later as well.

Dealer fees commission charges 

The dealer fees for commission charges vary between 2%-8% per watch and are dependent on the type of subscription and the type of watch. Chrono24 has developed an algorithm that can estimate the margin a seller makes on a specific watch based on the brand, model, condition and other characteristics. As far as we know, slow moving stock with higher prices are charged higher commissions. But hot models from Rolex or Patek Philippe that are well priced are less heavily charged.

Someone who wanted to become a professional dealer on Chrono24 informed us the first couple of watches are still charged with 6.5% commission, just like private sellers.

Professional dealer fees for commissions at February 2021

 

Chrono24 dealer fees: commission fees

We have been informed about commercial dealers who use Chrono24 as a marketing tool. They showcase their watches available for sale. But try to realize the deal outside of Chrono24. In essence both the seller and the buyer can get a better price. Avoiding the fees of Chrono24 (let's say 6.0%) can mean more proceeds to the seller, a lower cost price for the buyer, or a little bit for both. 

Sales tax fees for professional dealers

Sales tax and VAT may be charged by local governments. Most of the countries in the EU, USA and Asia have a "margin agreement". This means the margins a commercial dealer makes, will be charged with a VAT. So for example when a watch is sold for €10.000 (sales price) with a purchase price of €9.000 there is a margin of €1.000. This means with a VAT of 25%, the tax authority will charge €250. Making the net proceeds €750.

Transactions are also charged with a 7.5% surcharge in the US. We are not sure why the US Tax authority "punishes" Chrono24, but it is obviously not beneficial. Chrono24 stated officially that it had to increase the seller fees. The surcharge however seems to be applied to domestic buyers as well. When you buy with Relleb on Chrono24, these fees may not be applicable since it is initially bought by a Dutch company.  

Chrono24 private seller fees

Commission fees for private sellers

Private sellers are always charged with a commission of 6.5% for each watch sold on Chrono24. In case you sell a watch as a private seller for €10.000, you will receive €9.350. Paying €650 in Chrono24 private seller fees. There is no room for negotiation and making a profit when buying and selling as a private seller or a collector, is difficult. At least when you want to actively buy and sell watches.

Chrono24 private seller fees versus Relleb and eBay

The watch marketplace on Relleb.com facilitates private sellers with no seller commission, full integrated pickup, delivery and insurance service and a safe escrow checkout. In addition we service buyers with an authentication service. This provides protection to the seller. Because when a watch is authenticated, sellers basically sell the watch to Relleb. Also aftersales and service is taken care of by Relleb. Making sure sellers get the best price, while shipment, insurance and contact with the buyer is taken care of. Easy selling and no hassle!

Shipment and insurance fees

On Chrono24 you will shipment and insurance have to be arranged by the seller. International shipments are sometimes not eligible for insurances and some carriers do not insure watches with a value above €5.000 (or $5.000). You can use the sales price as an indicator for the insurance value. So please be careful. Read the small letters. This applies to FedEx, DHP, USPS, UPS as well! We know for example DHL and FedEx do not insure above €5.000 outside of the US.

In addition insurers request to make pictures of the packaging, labels etc. to be eligible to make a claim when something goes wrong. Make sure to do this before you ship a watch to the buyer! Otherwise you may lose your watch and money.

For shipments we always recommend to arrange signature priority shipment. As carriers are generally more careful. Unfortunately we still have bad experiences. For example boxes and watches damaged, late deliveries, packages dropped on hallways. You name it. Insure and pack well!

Customs and import duty fees

Some countries, like Switzerland, penalize sellers and buyers when a watch is not registered for importing. And in some countries, the seller has to arrange this and for other countries the buyer. The penalty in Switzerland amounts to a staggering €1.500! So make sure to do your homework on import duties and customs requirements. Generally a buyer pays for the import duties. But sellers can be held accountable as well, especially when a package gets stuck at customs.

In addition, animal skins may sometimes be forbidden to export or import. So crocodile or snake leather straps or other animal skin may be held up at customs. Which can result in a delay and even a watch being confiscated. So make sure to check this beforehand. Which is why we tend to recommend only "normal" calf leather straps. No other straps.

Private sellers on the Relleb Watch Marketplace can make use of our pickup and insurance service. We will create a customs invoice, commercial invoice and arrange pickup and insurance of the watch. Visit our page how to sell your watch on Relleb to learn more.

Sales tax fees for private sellers

Private sellers are not charged with tax fees by Chrono24. However, national tax authorities have guidelines on when selling becomes "commercial". Which means you should pay taxes. We advise sellers to research when they are obligated to pay for tax on their sales.

FAQ on Chrono24 fees

What percentage does Chrono24 take?

Professional dealers are charged with 2%-8% and Private sellers with 6.5% seller fees as a commission. VAT surcharges may be applied for domestic USA sales (7.5%) and when importing a watch (national VAT%).

Do you have to pay tax on Chrono24?

Tax surcharges of 7.5% on US domestic sales may be applied. National tax authorities have guidelines on when selling becomes "commercial". Which means you should pay taxes. We advise sellers to research when they are obligated to pay for tax on their sales. Local VAT tax charges may also be applied when importing a watch. There are no other direct tax charges from Chrono24.

Is there a Chrono24 trusted checkout fee?

There is no trusted checkout fee applied when buying a watch on Chrono24. But sellers commissions and import duties will be applied on top of the price of a watch and are not visible directly.

How to become a trusted dealer on Chrono24?

Becoming a trusted dealer means that you first have to register yourself as a commercial dealer, sign the Trusted Dealer guidelines and go for 6 months without customer complaints. This also means you have to sign up for a monthly fee and accept the percentages that will be applied by the platform on your sales. 

Are there any transaction fees?

The transaction fees for paying with credit card, visa, Mastercard are covered with the commission that is charged to private sellers and professional dealers. If a customer checks out with Amex, Chrono24 will charge the buyer with an additional 2%.

Are there any buyer fees?

Buyers are charged with an additional 2% fee when checking out with Amex. Buyers may also be charged with import duties and VAT when buying from foreign countries. In the USA, buyers are charged with a Tax surcharge of 7.5% as well on domestic sales.

What is the best place to sell watches?

The best alternative platform to Chrono24 and eBay for selling watches is Relleb.com. It allows private sellers to ask a fair market value. Checkout with an Escrow account. While paying no seller commission and using the pick-up and insurance service. Customs declarations will be arranged by Relleb.

Relleb earns a fee on the authentication costs that is charged on the buyer. As each watch is authenticated by hand by an experienced watchmaker.

So the benefits and terms of selling on Relleb:

• No seller commission
• Checkout with Escrow service
• Shipment service
• Insurance service
• Customs declarations service
• Direct payout to sellers
• Aftersales and contact with the buyer by Relleb
• List watches for free

Visit the Relleb Watch Marketplace or read more about selling on Relleb.