Commission
Strategy and planning
Strategy and planning
Commission is a fee per sale or result, usually a percentage of order value: for affiliates, sales people, marketplaces or brokers.
On marketplaces like bol or Amazon you pay commission per product sold, often varying by category. In affiliate marketing you agree a percentage or fixed amount per sale (see also CPS).
Always run commission through to your net margin, including returns, shipping and VAT effects. A percentage that looks small on revenue can be heavy on margin.
In practice
Comparing commission with ad costs at revenue level. Compare margin per order, or you will pick the most expensive channel.
Related terms
- Affiliate marketingIn affiliate marketing you pay partners a fee per sale or lead they bring in, usually through a tracking link.
- CPSCPS (Cost per Sale) is what you pay per actual sale — with affiliates and marketplaces often a fixed percentage of order value.
- MarginMargin is what's left of a sale after direct costs. It's the number that decides how much you may spend on marketing.
- MarketplacesMarketplaces are platforms like bol, Amazon and Zalando where you sell through the platform's audience and checkout, paying commission per sale.