When the right ecommerce platform
is chosen and the main challenges of creating an online marketplace
are met it's high time to tune it up. To build a sustainable business you'll have to make one of the first steps which is really important—decide what pricing strategies will work for your virtual multi-seller mall.
Unfortunately, there's no a one-size-fits-all pricing strategy that matches any kind of an online marketplace center. The income may be generated from different types of services including ads, affiliate revenues, paid vendor promotions and so on but still, commissions would take the largest share.
What kind of commissions do two-sided ecommerce shopping malls charge?
- transaction fees (flat or percentage)
- listing fees
- subscription or membership fees
- premium plan fees
But how much should you charge? Obviously the more the better is not an option especially when you've just started. Extremely high rates make the pricing abnormally high as they are a part of the final price that customers see. And of course, high rates will scare off the prospective sellers.
Let's turn to the old salt veterans. Depending on services they offer the commision values vary a lot. Etsy offers one of the lowest commissions—5% per transaction.