Revenue & Fees
How to make money with your marketplace: commission rates, fee structures, and revenue examples.
How Marketplace Owners Make Money
As a marketplace owner, your primary revenue comes from commission fees - a percentage you take from each sale on your platform. This is how Etsy, Airbnb, Uber, and virtually every successful marketplace generates revenue.
Your Revenue = Commission on Every Sale
When a seller makes a sale on your marketplace, you automatically keep a percentage as your platform fee. This is configured in your Store Settings and is completely separate from Prometora's fees.
Setting Your Commission Rate
You can set your commission rate in Store Settings → General. This percentage is automatically deducted from each sale and sent to your Stripe account.
Example: 10% commission on all sales
Commission Rate Guidelines
The right commission rate depends on your marketplace type and the value you provide:
| Rate | Best For | Examples |
|---|---|---|
| 5-10% | High-volume, low-margin goods | Electronics, commodities, wholesale |
| 10-15% | Standard product marketplaces | Handmade goods, vintage, art |
| 15-20% | Service marketplaces | Freelance, tutoring, consulting |
| 20-30% | Premium/high-value services | Rentals, luxury goods, experiences |
How to Choose Your Rate
Research what similar marketplaces charge. If you're just starting, consider a lower rate (5-10%) to attract sellers, then increase as you add more value (traffic, features, trust).
Understanding All Fees
There are three types of fees involved in a marketplace transaction:
1. Your Commission
You Keep ThisThe percentage you set (e.g., 10%). This goes directly to your Stripe account. This is your revenue.
2. Prometora Platform Fee
Based on PlanA small percentage on transactions, depending on your Prometora plan:
- • Starter: 2% per transaction
- • Professional: 1.5% per transaction
- • Business: 1% per transaction
3. Stripe Processing Fee
Payment ProcessingStripe's standard payment processing fee: 2.9% + $0.30 per transaction (varies by country and payment method).
Complete Revenue Example
Let's break down exactly what happens when a buyer purchases a $100 item on your marketplace:
You earned $10.00 from this single transaction
Who Pays the Fees?
By default, sellers absorb all fees. This is the most common approach used by major marketplaces like Etsy, eBay, and Airbnb. Here's why:
Seller Absorbs Fees (Default)
- • Clean buyer experience - price = what they pay
- • Higher conversion rates at checkout
- • Sellers factor fees into their pricing
- • Industry standard approach
Buyer Pays Fees (Alternative)
- • Sellers receive the full listed price
- • “Service fee” shown at checkout
- • More transparent for sellers
- • May reduce conversion slightly
Communicating Fees to Sellers
Be transparent with your sellers about fee structure. Most sellers understand and accept platform fees as a cost of doing business - just like payment processing fees. Include fee information in your seller onboarding and FAQ.
Revenue Projections
Here's what you could earn at different marketplace sizes (assuming 10% commission, Professional plan):
| Monthly GMV | Your Commission (10%) | Prometora Fee | Subscription | Net Revenue |
|---|---|---|---|---|
| $5,000 | $500 | $75 | $89 | $336/mo |
| $10,000 | $1,000 | $150 | $89 | $761/mo |
| $25,000 | $2,500 | $375 | $89 | $2,036/mo |
| $50,000 | $5,000 | $750 | $89 | $4,161/mo |
| $100,000 | $10,000 | $1,500 | $89 | $8,411/mo |
* GMV = Gross Merchandise Value (total sales). Net revenue = your commission minus Prometora fees and subscription. Stripe fees are paid by sellers, not deducted from your commission.
Upgrade to Business for Higher Volume
At $50,000+ monthly GMV, upgrading to Business ($159/mo, 1% fee) makes sense. You'd save $91/month in platform fees at $50K GMV, plus get API access, webhooks, and data export.
Tips for Maximizing Revenue
1. Focus on GMV Growth
Your revenue scales with sales volume. Focus on attracting quality sellers and driving buyer traffic. A 10% commission on $100K GMV is far better than 20% on $10K.
2. Start Lower, Increase Later
Begin with a competitive rate (5-10%) to attract early sellers. As you add value (traffic, features, trust), you can gradually increase your commission.
3. Consider Tiered Pricing
Some marketplaces offer lower commission rates for high-volume sellers. This encourages seller loyalty and growth.
4. Add Premium Features
Beyond commission, consider offering premium seller features: featured listings, analytics dashboards, or promotional tools for an additional fee.
Common Questions
Can I charge listing fees instead of commission?
Currently, Prometora supports commission-based monetization. Listing fees (charging to post a listing) are on the roadmap. Most successful marketplaces use commission as it aligns incentives - you only earn when sellers earn.
Can buyers pay the fees instead of sellers?
The default is seller-pays, which is industry standard. Buyer-pays (service fee at checkout) is a feature we're considering. Contact us if this is important for your business model.
When do I receive my commission?
Your commission is transferred to your Stripe account when the payment is processed. Stripe then pays out to your bank account according to your payout schedule (typically 2 business days in the US).
What happens with refunds?
If a transaction is refunded, the commission is also reversed. Stripe processing fees are not refunded by Stripe, so factor this into your refund policy.