How Commission Works

• Flat commission rate: Kapsule charges an 8% commission on the total order value.

• Payment processing fee: A 3% processing fee is charged by our payment provider. This fee is applied when payouts are made.

• No subscription fees: There are no monthly or annual charges for maintaining your store.

• Order-based deduction: The 8% commission is deducted from each order automatically as shown in your dashboard. The 3% processing fee is applied later, when your payout is transferred.

• Shared growth: Commission is reinvested into advertising, marketing campaigns, and ongoing platform improvements — helping attract more customers and sales for all vendors.

Example Calculation

• Product sale price: $100

• Kapsule commission (8%): $8 (deducted at order stage)

• Payment processing fee (3%): $3 (deducted at payout stage)

• Net payout to vendor: $89 (before considering any shipping costs you may incur)

What the Fees Cover

The combined fees are not just deductions—they fund essential services to support your business and drive growth:

• Payment handling: Secure transfer of funds during payout through our provider

• Buyer protection: Coverage under the Kapsule Buyer Guarantee, building customer trust

• Dispute mediation: Assistance with chargebacks and claims when issues arise

• Customer communications: Kapsule manages all order updates and queries on your behalf

• Marketing & growth: Commission is reinvested into advertising Kapsule, improving services, and attracting more buyers — a win-win for everyone

“Your commission isn’t just a fee — it’s an investment back into the platform. By funding advertising and service improvements, Kapsule helps grow your sales while ensuring a seamless customer experience.”

When Fees Apply

• Successful sales only: Commission and processing fees apply only when an order is completed and paid out

• Cancelled or refunded orders: If an order is cancelled or fully refunded, the 8% commission is reversed and no payout fee is applied

• Partial refunds: Fees are adjusted proportionally based on the final order value

How to Factor Fees into Pricing

When setting your prices, consider the following:

• Build in the 8% commission and the 3% payment processing fee to maintain your profit margin

• Account for shipping costs (if not passed to the buyer)

• Review competitor pricing to remain competitive even after fees

Many vendors set prices at cost + commission + payment processing fee + shipping to safeguard margins while staying competitive.

FAQs

1. Is the 8% commission the same for all categories?
Yes. Kapsule applies a flat commission across all categories for simplicity.

2. When exactly is the 3% fee deducted?
It is applied at the time of payout transfer, not when the customer places the order.

3. Do I pay fees if the buyer returns the product?
If the order is fully refunded, both the commission and payout fee are reversed. For partial refunds, fees are adjusted accordingly.

4. Can Kapsule change the commission or payout fee?
Any changes will be communicated in advance. The current rates are 8% commission + 3% payout fee.

5. Does Kapsule charge GST or VAT on these fees?
Yes, where legally required. Any applicable tax will appear clearly in your payout statement.

Related

• Payout Schedules & Timelines

• Chargebacks: What They Are & How to Respond

• Return Shipping Responsibilities