How are commission fees calculated?

How are commission fees calculated?

How Commission Fees Are Calculated

The total commission fee is calculated on the sale amount on a per-item basis. This means that each time a sale is made, the corresponding commission fee will be deducted from your payout.

TIP: Use the Seller Fee Calculator to work out your margins

Formula for Commission Fee Calculation:

The commission fee is calculated using the following formula:

Commission Fee=(Sales Value Excl. VAT×Commission Percentage)×(1+VAT Rate)

Where:

  • Sales Value Excl. VAT (where applicable) is the price of the item without VAT.
  • Commission Percentage is based on the product category.
  • VAT Rate is 15%.

Example:

Let's say you're selling an item for R1,000 (excluding VAT) in a category with a 10% commission:

Commission Fee=(R1,000×0.10)×(1+0.15)=R100×1.15=R115

So, the commission fee would be R115, and this would be deducted from the sale price.