As the marketplace admin, you can set a commission fee on all paid transactions conducted within your marketplace. This can be done done in Console → Monetization → Commission. If you want to process payments between your marketplace users, but don't want to charge commission fees, you can set both the provider and customer commission fields at zero. However, bear in mind that Stripe processing fees will still apply.
You can charge commission fees to providers, customers, or both. Commissions charged to the provider are taken out from the transaction value, while commissions charged to the customer are added on top of the transaction cost. You have three ways to structure your commission fees.
Percentage commission
You can charge a percentage of the transaction value. Used on its own, this fee is automatically calculated to the size of each transaction. You can charge a percentage commission by entering a percentage number in the Provider commission (%) and Customer commission (%) fields.
Fixed (minimum) commission
You can charge a fixed fee per transaction. Unlike the percentage model, the commission amount is the same regardless of the transaction value. You can charge a fixed commission by entering a number in cents in the Minimum provider commission in cents and Minimum customer commission in cents fields.
Percentage and minimum commission
You can set both percentage and a minimum fixed fee. If you do this, the marketplace commission will be whichever option gives you the highest commission value. In this case, you need to both set a percentage and enter a minimum commission in cents for the customer, the provider or both.
Alternatively, you could also employ a hybrid model, where you can charge providers a percentage fee and charge customers a fixed fee (or vice versa). To do this, set a percentage fee and set the minimum commission to zero for providers, then do the opposite for customers; zero percent but a minimum commission in cents.
How does it work in practice?
Below are example calculations based on a listing that costs $50, showing what the customer pays, what the provider receives, and what the marketplace earns under each commission structure:
Percentage commission only
Suppose you set the provider commission at 10 % and the customer commission at 10 %.
The customer is charged $55 ($50 + 10 %).
The provider’s payout is $45 ($50 – 10 %).
As the marketplace, you collect $10 in total, $5 from the provider and $5 from the customer.
Fixed (minimum) commission only:
Suppose you charge a fixed $2 from the provider and $3 from the customer, no matter the price.
The customer is charged $53 ($50 + $3).
The provider’s payout is $48 ($50 – $2).
You collect $5 in total, $2 from the provider and $3 from the customer.
Percentage and minimum commission (whichever is higher)
Suppose you set a 5 % commission and a minimum of $3 on each side.
5 % of $50 equals $2.50, which is less than the $3 minimum, so the minimum applies.
The customer is charged $53 ($50 + $3).
The provider’s payout is $47 ($50 – $3).
You collect $6 in total, $3 from the provider and $3 from the customer.
(If the listing price was $100, 5 % would beat the $3 minimum, so you’d take $5 per side instead.)
Hybrid model (percentage from provider, fixed fee from customer)
Suppose a setup where the provider pays 8 % and the customer pays a flat $2.
The customer is charged $52 ($50 + $2).
The provider’s payout is $46 ($50 – 8 %).
You collect $10 in total, so $8 from the provider and $2 from the customer.
Can I set different commission fees?
By default, you can only set a single percentage commission fee that applies to all providers and/ or customers. With code customization, you can set different commission fees for different users, different listing types, and so on.
When does my commission get paid out?
Your marketplace commission earnings are available for payout to your platform bank account after the customer's payment is processed. The earnings are transferred to your platform account balance. It will then be paid out according to any payout rules or actions you take in Stripe as the platform owner. Note that your platform balance is used to cover refunds, which includes commission earnings by default.
Your providers are paid out differently. Learn more about how payouts to your providers work.
Can I charge a fee for creating listings?
You can charge a listing fee each time a provider wants to publish a listing on your marketplace. Learn more in this article.
Can I set up a subscription or membership option?
You can indeed also charge your providers a subscription fee to allow them to post listings on your marketplace. Learn more in this article.