How does product pricing affect reseller commission and customer billing?
There are three factors that affect your commission and customers' billing: buy rates, minimum and suggested retail, and your price settings.
We calculate your commission based on the difference in price you charge customers and your buy rate, less your transaction fees, or:
Your commission = your retail price – your buy rate – transaction fees
- Buy rates — The wholesale prices you pay for products you resell. Pro Resellers have lower buy rates than Basic Resellers, so we often refer to two prices when mentioning buy rates.
- Transaction fees — A 2.5 percent fee applied to orders' dollar amount plus a $0.25 credit card processing fee per order.
Minimum and Suggested Retail
The minimum retail is the lowest price you can charge customers. The suggested retail price is what we recommend charging customers. These factors change simultaneously.
Your price settings are the prices you charge your customers:
- Custom pricing — Choose your own pricing as a fixed dollar amount. Custom pricing does not update with changes made to minimum, or suggested retail factors, unless your minimum retail was set below the new minimum. In that case we set it to the new minimum.
- Default pricing — Choose your pricing as a dollar amount or percentage above or below suggested retail. Default pricing updates with changes made to minimum and suggested retail factors.
How Changes Affect Your Commission and Customer Billing
Buy Rates, Minimum, and Suggested Retail Changes:
Both your commission and customers' billing change.
Only Buy Rates Change:
Only your commission changes.
Only Minimum and Suggested Retail Changes:
- Using custom pricing — Your commission and customers' billing do not change, unless your minimum retail was set below the new minimum, in which case we set it to the new minimum. If your custom pricing is moved, your customers' billing and your commission changes.
- Using default pricing — Both your commission and customers' billing change.