To build a pricing strategy for your marketplace is not easy. What works for this marketplace might not work for the others. Many people may prefer high rate while others think a very low rate would be effective in attracting a lot of users to site. There’s no right or wrong answer since each marketplace has its own business strategy including pricing structure to remain competitive in the market while still being able to make profit out of it.
Commission fee is the most popular business model whose pricing structure is also complicated to determine. How much should you charge? Should it be a same flat rate for every transaction or the percentage of the total sum? Who will pay the bill? The buyers, the sellers, or both? There’s no correct formula for this but we will discuss important aspects to help you decide the pricing for your marketplace.