Understanding Marketplace Commission & Fees
Last updated February 18, 2025
When selling on our marketplace, it's important to understand how commission fees and other charges work. These fees help maintain platform operations, marketing, and customer service, ensuring a seamless experience for both sellers and buyers.
Types of Fees for Sellers
1️⃣ Commission Fee
- A percentage charged on each successful sale.
- Varies based on product category, price, and seller performance.
2️⃣ Payment Processing Fee
- Covers transaction handling by payment providers.
- Typically a fixed percentage + a small fee per order.
3️⃣ Shipping & Logistics Fee (If using marketplace fulfillment)
- Calculated based on package weight, dimensions, and delivery location.
- Express shipping may have additional costs.
4️⃣ Advertising & Promotion Fees (Optional)
- If you opt for sponsored listings or promotions, fees apply based on ad spend or cost-per-click (CPC).
5️⃣ Penalty Fees (Avoidable with good seller performance)
- Late shipment fees, order cancellations, and policy violations may result in penalties.
Commission Fee Breakdown
| Category | Commission Rate |
| Electronics | 5-8% |
| Clothing & Fashion | 10-15% |
| Home & Kitchen | 8-12% |
| Beauty & Health | 12-18% |
| Handmade Items | 5-10% |
Note: Rates may change based on seasonal promotions or seller programs.
How to Reduce Fees?
✅ Offer Competitive Prices – Higher sales volume can lower your overall cost per sale.
✅ Use Fulfillment Services Wisely – Compare costs between self-shipping and marketplace shipping.
✅ Avoid Order Cancellations – Maintain accurate stock to prevent penalty fees.
✅ Join Seller Programs – Some programs offer lower commission fees for high-performing sellers.
FAQs
- How is the commission fee deducted?
- The fee is automatically subtracted from the sale amount before the payout.
- Are there any hidden fees?
- No, all charges are listed in the seller dashboard before confirming a sale.
- Can I negotiate my commission rate?
- High-volume sellers may qualify for lower rates through exclusive seller programs.
- What happens if a customer requests a refund?
- The commission fee is refunded if the order is canceled before shipping.
- Where can I see a breakdown of my earnings and fees?
- Your seller dashboard provides detailed reports on earnings, deductions, and payouts.