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Collect commission from sellers, buyers or both
Collect commission from sellers, buyers or both

To earn money from your marketplace, you can collect a fee (commission) from sellers and/or buyers, over each paid transaction.

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Written by Sharetribe
Updated over a week ago

As a marketplace administrator, you can choose to charge a commission from each paid transaction in your marketplace. The fee can be defined from the "Online payments" then "Stripe" or "PayPal" page in your Admin panel. Depending on your payment gateway, you can charge sellers, buyers, or both.

What kind of commissions can I charge?

There are two options for transaction fees: you can either charge a percentage of the total transaction price or a minimum fixed fee. These can also be combined to charge both a percentage and a fixed fee. In this case, your commission is whichever is the highest option. 

Wondering about the minimum listing price? You can read more about it in this article.

How does this work in practice?

As an example, let's say you define a percentage of 10% and a fixed fee of $1. If a transaction's value is $5, you will get the fixed fee of $1 since it is higher than 10% of the transaction value ($0.50). If the transaction value is $20, you will get the percentage amount ($2) since it is higher than the fixed fee of $1.

Can I choose not to charge a commission?

If you don't want to charge a fee from transactions, you can always set both the percentage and the fixed fee at 0. Fees from the payment provider (Stripe or PayPal) will still apply.

Can I change the fee?

You can change your fee at any time. However, it is a very good idea to notify your sellers to not create any surprises for them if you do so.

For any ongoing transaction, the fee will not change.

Can I set different transaction fees?

You can set up one commission for Stripe and one for PayPal. This is because Stripe processing fees and PayPal's processing fees and how they are charged differ.

With Stripe, you can decide to collect a commission from sellers, buyers, or both. With PayPal it is possible to collect a commission from sellers, but not from buyers.

It is not possible to set different commissions for different seller categories or order types, unfortunately.

Can I charge a fee for creating listings?

This is not possible. A fee can only be charged for a paid transaction. There is, however, an alternative way to charge sellers a fee to post a new listing

Can I set up a subscription or membership option?

We do not offer a built-in way to do this, but here is a work around to set up a subscription system.

Example of transactions with commissions:

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