What Is the Buyer/Seller Fee?
Buyer and seller fees refer to the charges applied to transactions on a platform.
Buyer Fee: This is a fee charged to the buyer for using the platform to purchase goods or services. It can be structured as a flat fee (a fixed amount per transaction) or as a percentage of the transaction value.
Seller Fee: This is a fee charged to the seller for listing and selling goods or services on the platform. Similar to the buyer fee, it can be structured as a flat fee or as a percentage of the transaction value.
These fees are typically used by online marketplaces, e-commerce platforms, and rental platforms to cover operational costs, provide customer support, and generate revenue. They vary in amount and structure depending on the platform's business model and pricing strategy.
How To Set The Buyer/Seller Fee On the Platform?
Navigate to the admin panel.
Select "Manage Order Type Settings."
3. Choose an existing order type or create a new one.
4. Scroll down to find separate tabs for buyer and seller fees for each payment method. You can set different buyer fees and seller fees for each payment mode.
5. You can set both flat fees and percentages for each fee type.
Note: When a listing is booked, the commission is determined by either a flat fee or a percentage of the listing price, whichever is higher.
Scenario 1:
For instance, if the flat fee is $20, the percentage is 20%, and the listing price is $200, the commission would be $40 (20% of $200), since the percentage yields a higher commission.
Scenario 2:
For example, if the flat fee is $20 and the percentage is 10%, and the listing price is $100, the commission would be $20 (the flat fee), as it results in a higher commission than the percentage calculation ($10, which is 10% of $100).