Overview
Fee rules determine the fees charged to consignors when their item is sold. Learn how to create and set fee rules / tiers within this article.
Main Components
Fee rules come with three main components:
Surcharges
These are added on top of the total fees after tier-specific fees are applied to the sale.
Activation
Located within the Fee Rule Settings box.
This determines whether or not the whole fee rule is applied to consigned items.
For simplicity, try to have only one fee rule active at a time.
Price Threshold Tiers
Specify different percent fees / base fees for different price thresholds.
Fee Rule in Action
For example, we have a simple universal price threshold of $0 and a percentage fee of 20%. Additionally, we have a surcharge fee of 10% + $5. If we sell a consignor owned item for $100, here is how the fees are applied:
Price Threshold Tiers go first, thus we compute the fees for the tier which is 20% of $100 = $20.
Surcharges go after price threshold tiers and is applied on the price of item - price threshold fees.
Price - Threshold Fees = $100 - $20 = $80.
Surcharge Fee = (10% of $80) + $5 = $8 + $5 = $13
Total Fees = Price Threshold Fees + Surcharges = $20 + $13 = $33
Here we make $33 in fees, and the consignor makes a total of $67 from the sale!
Creating / Editing Fee Rules
Creating and editing fee rules use the same form. Here you can set the surcharge fees and determine whether or not you want to activate this fee rule.
The price threshold tiers first start at a threshold of $0. You want to create the tiers in terms of increasing threshold.
For example, if you wanted a lower tier from $0 to $250 and a tier from $250 and onwards, you will want to first set the fees for the first tier then set the threshold of the second tier to $250 and set the fees for that tier as well.
