Blog and Announcements

Update to Payout Cycles: New 30-Day Payout Available

August 15, 2019

On September 5, we are launching new payout cycles that will be determined by Incident Rate and a minimum amount of net sales. In addition to the existing 15 and 60 day payout cycles, we are introducing a new 30 day (1x Monthly) cycle to give more sellers providing a good customer experience a faster payout timeline.

Below, we’ve included the qualifications for each payout tier. In order to account for the variance in broken rates by category, and to not penalize sellers for experimenting in new categories, Seller Fault Returns will be excluded from the Incident Rate that determines payout cycle.

Payout Cycle Tiers

  • 2x Monthly (15 day): An Incident Rate of less than 0.5% and more than $1000 net sales in the last 30 days
  • 1x Monthly (30 day): An Incident Rate of more than or equal to 0.5%- and less than 0.75% and more than $1000 in the last 30 days
  • 60 Day: An Incident Rate above 0.75% OR less than $1000 net sales in the last 30 days

On September 5, following the September 2 payout, your new payout cycle will begin. For some sellers, there will be no change, depending on current performance. From September 5 to October 5, sellers payouts may adjust one more time. On October 5, in order to ensure our sellers have predictable payouts during the busy season, we will lock payout cycles based on current performance and not adjust them again until January 5, 2020. Moving forward, payouts will be adjusted based on a quarterly review of performance.

Improving Incident Rates

Incident Fees are the cost of providing a poor customer experience; however, we understand the occasional poor experience is part of doing business and will happen from time to time. Your Incident Rate is a great indicator of your overall performance on Tophatter. Incident Rate is calculated by dividing Incident Fees by net sales over the calendar month. You can monitor your Incident Rate on your Seller Homepage. Improving your Incident Rate means lower fees, faster payouts, and happier shoppers. There are a few simple ways to improve your Incident Rate, including:

  • Ensure listings are clear and descriptive
  • List variations accurately
  • Ensure inventory is undamaged and well packaged before shipping
  • Ship quickly and with a supported carrier

To learn more about Incident Fees and more tips to improve your Incident Rate, check out this video on the subject on our Seller Education YouTube Channel. For more information on how sellers get paid head to the FAQ.