Below is a detailed explanation of our Marketplace fees and how they are calculated.
1. Trellus Commission Fee
Trellus charges a commission on all items purchased on the Marketplace. The commission is:
- 10% of the item subtotal
2. Stripe Processing Fees
Every transaction processed through the Marketplace includes Stripe payment processing fees, along with platform fees that help cover payment processing, tax calculation services, and the cost of transferring funds to merchants’ bank accounts. This fee is:
-
2.9% of the total transaction amount (including tax, tip, and delivery fees)
+ - $1.05 per transaction (Part of this flat amount covers Stripe’s flat $0.30 per transaction credit card fee. The remaining $0.75 helps Trellus cover the costs of tax calculations and bank transfers. Tax calculation is at minimum $0.50 per transaction, each transfer to a merchant’s bank account is $0.25 + 0.25% of the total amount, and Stripe charges $2/month for each active account. These are billed directly to Trellus by Stripe, so you don’t need to worry about them!)
Example Fee Calculation
To help illustrate how these fees apply to your orders, let’s look at a simple example for an untaxed item priced at $10, and ordered through the Trellus Marketplace for pick-up:
Item subtotal: $10.00
Tax + Delivery Fee + Gratuity: $0.00
Customer pays: $10.00
- Stripe Fees: ($10.00 x 2.9%) + $1.05 = $1.34
- Trellus Fee: ($10.00 x 10%) = $1.00
So, the total fees for this $10 transaction would be:
- Total Fees: $1.34 (Stripe) + $1.00 (Trellus) = $2.34
The amount paid out to the merchant (after fees) for this $10 transaction would be:
- Merchant Payout: $10.00 - $2.35 = $7.66
For a more complete example including delivery fee and gratuity and including a money flowchart, look below the Summary section of this article.
Tips for Covering Fees
For items priced under $20, it might be beneficial to consider adjusting your prices slightly to cover these fees. An up charge of $3 to $5 can help offset the fees and ensure you maintain your desired profit margin.
Summary
Trellus is committed to providing transparent and fair pricing to ensure the success of your business on our Marketplace. Understanding our fee structure will help you price your items effectively and anticipate your net earnings.
If you have any questions or need further assistance, please contact our support team.
Detailed Example Delivery Order Fee Calculation
For the sake of simple math, we’ll use as many round numbers as possible in this example. We’ll assume the store is located in Santa Rosa, CA and therefore has a 10% sales tax rate. The customer is buying an item priced at $100.00 on the Marketplace, is leaving a $5 tip for the driver, and being charged a $10 Delivery Fee.
Item subtotal: $100.00
Delivery Fee: $10.00
Tax (10%, incl tax on delivery fee): $11.00
Gratuity: $5.00
Customer pays: $126.00
The customer will be charged a total of $126.00 for this order. You will see this amount show up under “Order Payments” on the financial tab on your Trellus Dashboard, as seen below:
Clicking on the transaction will show both the total amount and the “Platform fee,” which includes delivery fees, gratuity, Stripe transaction fees, Trellus commission, and other applicable platform charges associated with the transaction. This breakdown will also be available on the Order Details page for the order.
Delivery Fee (from above): $10.00
Tax (from above): $11.00
Gratuity (from above): $5.00
Trellus commission (10% of subtotal): $10.00
Stripe fees (2.9% of total charge + $1.05): $4.70
Total Platform Fee: $40.70
This leaves $85.30 from the initial transaction to be paid to your Stripe Connect account.
From the Platform Fee, Trellus pays out the following:
- Applicable sales taxes are collected as part of the transaction. Merchants are responsible for complying with all applicable tax laws and remittance requirements.
- 100% of the gratuity and 80% of the delivery fee is paid out directly to the delivery driver
- Stripe fees are automatically withdrawn from the platform fee
The entire process is laid out visually in the following flowchart:
If you have any questions or need further assistance, please contact our support team using the chat bot or our contact form here.