When an order is placed, store owners are charged for the products being purchased with the following fee breakdown:
- Wholesale cost of the product
- Fulfillment Fee – fixed at $3.15
- Platform Fee – 10% of wholesale cost
- Shipping Fee – $6.19 flat rate shipping (dynamic starting in 2023, see above question for more details)
Example
For a product with a wholesale price of $10 and a MSRP of $20, the following fees would apply:
- The customer is charged $20 + shipping set by the store owner (we suggest flat rate shipping of $6.19 to match what the store owner is charged. See above question for more details)
The store owner is then charged:
- $10 (wholesale price) + $3.15 (fulfillment fee) + $1.00 (platform fee) + $6.19 (flat rate shipping) = $20.34
In this scenario, the total collected from the customer was $26.19 and the cost to the store owner was $20.34 realizing a profit margin of around 29%. Note that larger orders result in higher profit margin since the shipping fee and fulfillment fee are relatively fixed.
