Marketplace Seller Fee Calculator

How to calculate marketplace fees?

Marketplace fees are comprised of referral fees, which are a percentage of the total sale price, and closing fees or transaction fees, which are fixed charges applied to every order.

Net Payout = Sale Price - (Referral Fee) - (Transaction Fee) - Shipping - COGS

Marketplace Fee Example

To illustrate, imagine you sell an item for $100 on a platform that charges a 15% referral fee and a small transaction fee.

Step-by-step calculation:

1. Calculate the $15.00 referral fee by multiplying the $100 sale price by 15%.
2. Add the $0.30 fixed processing or transaction fee to the costs.
3. Subtract your shipping expenses and the original cost of goods sold.
4. The final payout totals $84.70 before accounting for shipping and COGS.

Frequently Asked Questions

What is a referral fee?

A referral fee is the commission the marketplace takes for finding you a buyer. It is typically a percentage of the total sales price including shipping and gift-wrap charges.

Why do processing fees vary?

Processing fees can fluctuate based on the category of the item, the total transaction volume of the seller, or the specific payment method used by the consumer.

Are shipping labels included in these fees?

No, marketplace fees generally only cover the cost of the platform and payment processing. Shipping labels and logistics are separate costs that the seller must account for independently.