What amount is commission calculated on?
Commission is calculated on the pre-tax purchase price after discounts. Taxes collected at checkout are excluded.
Example: a $100 price after a $20 discount is $80 before tax. Tax of $16 is added at checkout. A 20% commission is calculated on $80, not on $96.
- Discounts. The base is the amount after discounts.
- Taxes. Checkout tax is excluded (for example VAT or similar sales tax). That includes tax collected when using Stripe Managed Payments.
- Shipping. Shipping fees on physical products are not included.
- Payment-provider fees. Processor fees are not deducted before commission is calculated. That is intentional and matches industry standard. Factor those fees into the commission percentage if needed.
