{"id":114571,"date":"2022-12-14T23:02:36","date_gmt":"2022-12-14T23:02:36","guid":{"rendered":"https:\/\/www-dev.channeladvisor.com\/blog\/uncategorized-au-2\/understanding-the-most-common-e-commerce-marketplace-fees\/"},"modified":"2023-12-15T20:16:50","modified_gmt":"2023-12-15T20:16:50","slug":"understanding-the-most-common-e-commerce-marketplace-fees","status":"publish","type":"post","link":"https:\/\/old.rithum.com\/au\/blog\/understanding-the-most-common-e-commerce-marketplace-fees\/","title":{"rendered":"Understanding the Most Common E-Commerce Marketplace Fees"},"content":{"rendered":"

Rithum research confirms what you may have known for awhile: Marketplaces are hot right now and will continue to grow. We dare say they\u2019ve become an essential avenue to <\/span>grow profits significantly<\/span><\/a>.\u00a0<\/span><\/p>\n

But it\u2019s not as simple as flipping a switch and reaping the rewards.<\/span><\/p>\n

Launching new marketplace channels takes work \u2014 and includes several fees you may not have considered. Could they be eating into your profits? It\u2019s important to know what fees you\u2019re paying, why you\u2019re paying them and how they\u2019ll impact your success long term.<\/span><\/p>\n

Types of Marketplace Fees<\/b><\/h2>\n

There are different types of marketplace fees \u2014 and each channel has its own mix. In general, fees fall under the following categories:<\/span><\/p>\n

Membership fees<\/b><\/h3>\n

Membership or subscription fees are those required to simply join the marketplace. Marketplaces like Amazon, Walmart, eBay, Etsy and Target Plus (through invite-only) all offer free seller accounts, but they\u2019ll only get you so far. If you want to add services like bulk listing or customisation tools, you\u2019ll need to upgrade to a paid account.<\/span><\/p>\n

Listing fees<\/b><\/h3>\n

Listing (or insertion) fees are charges for every product you post on the marketplace\u2019s site, regardless of whether or not it sells. These fees are pretty low per SKU but can add up to a significant amount depending on how many you list. <\/span>Walmart Marketplace<\/span><\/a> does not charge listing fees and <\/span>Amazon<\/span><\/a> is free to list up to a certain volume, but the marketplaces that do charge them often boast more selective, high-quality catalogues.\u00a0\u00a0<\/span><\/p>\n

Commission Fees<\/b><\/h3>\n

Referral (or commission) fees are in addition to any listing fees and are assessed when an item sells. It is generally a percentage of the product price instead of a flat fee. Etsy<\/a> charges a 6.5% \u201ctransaction fee\u201d (assessed at checkout) across all items, while Amazon, Walmart, Target<\/a> and eBay<\/a> take a referral or \u201cfinal value fee\u201d that varies by product category.\u00a0<\/span><\/p>\n

Payment processing fees<\/b><\/h3>\n

Some marketplaces charge sellers to use their payment processing services. These may vary based on the merchant\u2019s location (domestic or international) or buyer\u2019s credit card type, but is usually a percentage of the subtotal. Whereas sellers and payment processors (e.g., Visa, Mastercard or American Express) usually work directly with each other, some marketplaces choose to handle the processing for their vendors for a fee instead.\u00a0<\/span><\/p>\n

Shipping fees\u00a0<\/b><\/h3>\n

Most marketplaces allow you to set your own shipping rates. You may opt to pass your exact shipping expenses on to the buyer, or encourage more sales by offering free shipping. This is different on Amazon, where standard sellers must abide by the marketplace\u2019s category-specific shipping rates unless they upgrade to a professional account.<\/span><\/p>\n

Fulfilment fees<\/b><\/h3>\n

Fulfilment<\/span><\/a> is up to each individual seller, but there are pros and cons to each strategy. In-house fulfilment can save you from paying an outside service, but it also means spending more time (and money) in processing and employee resources. <\/span>Third-party fulfilment services<\/span><\/a> like Fulfilment by Amazon (FBA), <\/span>Walmart Fulfilment Services<\/span><\/a> or other third-party logistics providers (3PL) handle it all for you, but they charge fees \u2014 and <\/span>not always as a lump sum<\/span><\/a> either. This may include long-term storage fees, removal order fees or even unplanned service fees.<\/span><\/p>\n

Rithum Helps You Balance Fees with Marketplace Success<\/b><\/h2>\n

No one likes fees, but they do serve a purpose. They allow marketplaces to offer you channel-specific perks, increase convenience and even bring more sales your way. The trick is choosing the channels with fee structures that best suit your needs.<\/span><\/p>\n

Rithum, a Rithum company, supports <\/span>more than 370 channels<\/span><\/a>. <\/span>Our experts<\/span><\/a> know the ins and outs of every marketplace and which ones are the best fit for your brand. If you\u2019re looking for a way to expand beyond your own website, store or sole marketplace, we can ensure your successful expansion in 2023.\u00a0<\/span><\/p>\n

Want to explore on your own? Our <\/span>Commerce Network<\/span><\/a> makes channel discovery and onboarding easy by connecting sellers and marketplaces in one platform. The offering is free to Rithum customers and gives you the information you need up front to make informed decisions about a marketplace\u2019s selling categories, fees, marketing content and more.\u00a0<\/span>Contact us<\/span><\/a> to learn more or <\/span>request a demo<\/span><\/a> with our team of e-commerce experts today to get started. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Rithum research confirms what you may have known for awhile: Marketplaces are hot right now and will continue to grow. We dare say they\u2019ve become an essential avenue to grow profits significantly.\u00a0 But it\u2019s not as simple as flipping a switch and reaping the rewards. Launching new marketplace channels takes work \u2014 and includes several […]<\/p>\n","protected":false},"author":1,"featured_media":113911,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"tags":[8406,12359,8914,13204,10117,8942],"asset-type":[13744],"audience":[13407,13410],"bio":[14335],"topic":[15166,15210,15167,5153,15242],"class_list":["post-114571","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-amazon-au-2","tag-listings-au","tag-marketplace-au","tag-marketplace-fees-au","tag-shipping-au","tag-walmart-au","asset-type-blog-au","audience-brands-suppliers-au","audience-retailers-au","bio-rithum-team-au","topic-brands-au","topic-brands-au-3","topic-scot-au","topic-marketplaces-au","topic-rithum-solutions-au"],"acf":[],"yoast_head":"\nUnderstanding the Most Common eCommerce Marketplace Fees<\/title>\n<meta name=\"description\" content=\"Learn about the most common marketplace fee types and how they lead to your success in each channel. 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