Blog and Announcements

Introducing an Improved Fee Structure

April 9, 2019

What you need to know about the new fee structure:

2019 is a big year for the Tophatter community. In 2018 we focused on controlled growth, improving predictability for Merchants. This year, we are empowering Merchants with more education, tools, transparency, and most importantly putting control into your hands.

Today, we are introducing a new fee structure: lowering the flat commission to 9% and rolling out Incident Fees. Incident Fees are the costs resulting from a Merchant providing a poor customer experience.

  • If you are providing a good customer experience, Incident Fees should amount to 1% or less of your total sales
  • We are increasing predictability and consistency by ending the practice of account blocks
  • Incident Fees will be outlined in your Seller Dashboard, so you know what products and orders received additional fees

With Incident Fees, we aim to reduce customer dissatisfaction events, which in turn will help retain Shoppers and drive additional sales. Merchants who provide a consistent, high-quality customer experience will have lower fees.

About the New Fee Structure

We heard you. This new fee structure empowers Merchants to control their performance management and does not impact your total business with account blocks. The new fee structure breaks down to:

  • A lower 9% commission for all current Sellers. New Sellers will remain at a 15% commission until their account is reviewed and the fee structure is adjusted accordingly
  • Incident Fees resulting from Merchants providing a poor customer experience. To read more about what each fee includes click here
  • The Scheduling Fee Bidding process will not change

Tophatter has evolved to put the control in the Merchants’ hands. We’ve built a suite of solutions to help our Sellers achieve their business goals on the platform. We’ve invested heavily in Shopper satisfaction and retention, launching a new loyalty program to add to the fun shopping experience. As well as working to acquire new Shoppers—our ad campaigns garner over 10 million impressions a day across Facebook, Google, television, and other channels.

Our team is hard at work to provide you with more tools, acquire you new customers, and improve your selling experience. We put the Merchants in control with a slew of new features and offerings: Campaigns, Reserve Prices in all categories, BOGO and Accessory Up-Sell improvements, to name a few. On the horizon, we are working to provide better category intelligence, more data, and marketing offerings for you.