Setting up default Marketplace Fees on your Marketplace with Omnyfy Marketplace Fees and Charge Management helps on covering transaction fees, such as Stripe fees. The following example shows how Marketplace Owner can use the Marketplace Fees Management when using Stripe Payment Method.

There are two types of fees charged by Stripe:

  1. Transaction Fee

  2. Connect Fee

Transaction Fees

This is the fee that is paid to Stripe when a Credit Card Transaction is processed. The fee is 1.75% + .30c for Domestic Cards and 2.9% and .30c for International Cards (https://stripe.com/au/pricing)

How Omnyfy handles this

The Marketplace Owner has the option of passing on this fee to the Customer or it must be absorbed by the Sellers

i. If Passed on to Customer

In Stores > Configuration > Omnyfy > Marketplace Commercials Management

  • Set Allow Transaction Fee “Yes”

  • Set Transaction Fee % to 1.79 and set Transaction Fee $ to .30c

  • This will calculate the transaction fee and charge this to the customer. The reason you’re setting it as 1.79 instead of 1.75 is because the transaction fee is added to the total the customer pays and the final fee is based on this total amount, so you need to charge a bit higher.

Result: The Vendors will then receive their full amount payable to them

ii. If Absorbed by the Sellers

In Stores > Configuration > Omnyfy > Marketplace Commercials Management

  • Leave “Allow Transaction Fees” to “No”

  • Under “Default Vendor Fees” Set Seller Fees to 1.75% and set Default Disbursement Fee to .30

How Fees are calculated in the above

For a transaction that has 3 Sellers selling the following products:

i. Vendor 1 - Product 1 = $50

ii. Vendor 2 - Product 2 = $100

iii. Vendor 3 - Product 3 = $100

Stripe will charge the following fees for the total order:

a. Transaction fee (1.75%) = (50+100+100) 1.75% = $4.375 + .30c (.30c is at an order level) Total = $4.68 (Rounded up)

b. Amount settled into SMM Stripe Balance = $245.32

Payouts to Vendors

i. Vendor 1 will receive $48.82 (Total Vendor Fee = $1.18, calculated as 1.75% of $50 + .30c)

ii. Vendor 2 will receive $97.95 (Total Vendor Fee = $2.05 calculated as 1.75% of $100 + .30c)

iii. Vendor 3 will receive $97.95 (Total Vendor Fee = $2.05 calculated as 1.75% of $100 + .30c)

Therefore, Total Fees recovered from Vendor to cover Stripe Fees = $5.28. This is because Omnyfy will deduct the .30c from each Vendor in the order. Note that if there is only 1 Vendor, then only .30c is deducted.

Note: The difference in fees .60c for the above transaction can be simply left in the Stripe balance and distributed equally to all vendors once a year or used for some other marketing purpose. IT is very minimal.

Stripe Connect Fees

  • $2 per vendor per month (25 Vendors means Stripe will charge the Marketplace Owner $50 p/month)

  • 0.25% per transaction PLUS 25 cents per PAYOUT (Not transaction). Note that a Payout is when you Pay a Vendor, it’s not when a customer purchases from multiple vendors.

Explanation of fee structure for % transaction at Payout

Following on from the above transaction, the Marketplace Owner now wants to pay out the different vendors as part of the transaction,

i. Vendor 1 will receive $48.82 (.25c + 0.13 = 0.38c Connect Fee deducted from Marketplace Owner stripe balance)

ii. Vendor 2 will receive $97.95 (.25c + 0.24 = 0.53c Connect Fee deducted from Marketplace Owner stripe balance)

iii. Vendor 3 will receive $97.95 (.25c + 0.24 = 0.53c Connect Fee deducted from Marketplace Owner stripe balance)

iv. Total Connect Payout Fee = $1.44 to payout the amounts to the different vendors

PRO TIP: To minimise costs, reduce the number of times payouts are processed to once a week – this way the .25c is only charged each time a payout is processed. The .25% doesn’t have an impact as it’s the same regardless.

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