Commission is the marketplace P&L
If you cannot explain how you earn on every transaction, you do not have a marketplace business model — you have a multi-seller website.
Three common models
Flat percentage
Simple: take X% of each line (or order). Easy to explain to vendors; blunt for categories with very different margins.
Category-based
Fashion at 12%, electronics at 6%, services at 15%. Matches real margin structures.
Tiered / volume
Lower rates as a vendor’s monthly GMV crosses thresholds. Useful for retaining power sellers.
Worked example
100 vendors × 30 orders/month × ₹1,500 AOV = ₹45 lakh monthly GMV.
At 10% commission → ₹4.5 lakh platform revenue before payment fees and ops cost.
Interactive model
Use the calculator below to explore your own assumptions:
Interactive: Marketplace commission calculator
Estimated marketplace economics
- Monthly GMV
- ₹45,00,000
- Monthly marketplace commission
- ₹4,50,000
- Annual GMV
- ₹5,40,00,000
- Annual commission revenue
- ₹54,00,000
Illustrative estimates — actual GMV depends on vendor acquisition, conversion, and your commission model.
Want to build this marketplace?What to put in the vendor contract
- Rate table and effective date
- What the base amount includes (tax inclusive vs exclusive)
- Refund / chargeback handling
- Payout schedule (weekly / bi-weekly)
- Withholding rules for disputes
Next steps
- Map your industry’s margin norms before locking rates
- Book a demo to see commission entries on a live order flow
- Read the order splitting blueprint