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Payments & Fees

Last Update há 2 meses

How Vendor Payouts Work Commission Structure and Costs Tax Settings and Invoicing

Commission Structure and Costs

LocalZ Support

Last Update há 2 meses

As a vendor on the LocalZ Marketplace, you keep the majority of each sale. LocalZ deducts a 20% commission from each order to support platform operations, marketing, and vendor services. This article explains how the commission structure works and what to expect.

Standard Commission Rate

LocalZ charges a flat commission rate of 20% on every sale.

This commission is calculated based on the total sale price, which must include shipping, since all products on the platform are required to offer free shipping.

Example:

  • Product price (includes shipping): $50

  • LocalZ commission (20%): $10.00

  • Vendor receives: $40.00

The commission is automatically deducted before the payout is issued. No additional action is required on your part.

What the Commission Covers

The 20% commission helps cover:

  • Platform infrastructure and maintenance

  • Customer support and vendor support

  • Marketplace moderation and dispute resolution

  • Marketing, traffic generation, and search visibility

  • Ongoing development of tools and features for vendors

There are no additional charges for listing products or maintaining a storefront.

No Upfront or Monthly Fees

LocalZ operates on a pay-as-you-earn model. This means:

  • No setup fees

  • No monthly subscriptions

  • No listing fees

  • You only pay the 20% commission when a sale is made

This ensures that vendors of all sizes can access the platform with minimal risk.

Optional Promotional Opportunities

In the future, LocalZ may offer optional advertising and upgrade features, such as:

  • Featured products

  • Sponsored category placement

  • Homepage highlights

  • Email campaign promotion

Participation in these features is optional and will involve additional costs if selected.

How to Track Commission and Earnings

  1. Log in to your Vendor Dashboard

  2. Go to Earnings or Order Details

  3. Each completed order will display:

    • Gross sale amount

    • Commission deducted (20%)

    • Net payout amount

You may export your earnings data for tax and accounting purposes at any time.

Next Steps

Now that you understand the commission structure, continue with:

  • Setting up your Tax Settings and Invoicing

  • Offering Coupons and Discounts

  • Learning How Vendor Payouts Work

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