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E-commerce vocabulary · Online Stores and Marketplaces

Commission

Meaning in e-commerce, with examples

/kəˈmɪʃən/nounCommon term

In e-commerce, commission means: The fee a marketplace keeps from each sale, usually a percentage of the selling price that changes by product category.

In Turkish: komisyon, pazaryeri komisyonu

How it is used

Central to marketplace pricing. Marketplaces charge or take a commission; sellers calculate it into their prices and compare commission rates between platforms. Also called referral fee or selling fee on some sites.

Example sentences

  1. After commission and shipping, we make very little on cheap accessories.

  2. The marketplace charges a 15% commission on clothing.

Common collocations

  • commission rate
  • charge a commission
  • marketplace commission
  • commission fees
  • pay commission
  • marketplaceA large website or app where many independent sellers list and sell their products, while the platform handles traffic, payments and often delivery rules.
  • third-party sellerAn independent business that sells its products on someone else's marketplace, as opposed to products sold by the marketplace company itself.
  • landed costThe full cost of getting a product to its destination: the product price plus shipping, insurance, customs duty, taxes and other fees.
  • GMVShort for gross merchandise value: the total value of goods sold through a store or marketplace in a period, before fees, discounts and returns are taken off.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Online Stores and Marketplaces

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