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Definition

Marketplace fee

The commission an online marketplace takes from each sale, usually a percentage of the total including shipping, plus a separate payment processing fee and sometimes a fixed listing or transaction charge.

Because these come off the selling price rather than being added to it, they reduce your margin directly. A 10 percent marketplace fee and a 3 percent processing fee together take 13 percent of the price, which is why a target price has to be divided by what remains after both fees and your margin.

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