The key point
Start with what the business needs to keep from a completed sale. The amount left after product and other costs is the available commission budget.
What commission can your margin support?
Start with the illustrative inputs below, then replace them with your figures. All amounts use the same completed-order basis, excluding VAT.
Your order economics
Revenue excluding VAT, after discounts. Use the value commission is charged on.
Revenue less product cost, as a percentage of revenue. Use margin, not markup.
Include fulfilment, payment fees, unrecovered return costs and any overhead allocation. Exclude commission and product cost already in gross margin.
Percentage of revenue you want left after the costs above and commission.
Try a rate to see how much contribution it would leave.
Affordable commission ceiling
15.00%
£15.00 per completed sale
The maximum that leaves your chosen contribution, using these inputs. This is an affordability estimate, not a GMVLY quote or recommended rate.
- Gross profit before other costs
- £40.00
- Other order costs
- £10.00
- Contribution you want to keep
- £15.00
- Commission at your test rate
- £10.00
- Contribution after test commission
- £20.00
Your test rate meets your contribution target.
£5.00 above your required contribution per sale.
The calculation
Maximum commission = order value × gross margin − other order costs − order value × required contribution. Divide the result by order value for the commission percentage. If it is negative, the affordable commission is zero and your target already has a shortfall.
Allow for return losses in other costs; use completed sales for revenue. Check whether your commission agreement uses a different revenue basis or includes network fees. Any omitted costs reduce the reliability of the estimate. This does not predict sales volume or incremental profit, and a rate affordable to you still needs to support GMVLY’s acquisition costs.
Turn your calculation into a commercial discussion
Bring your margin assumptions, catalogue and affiliate programme. We will discuss a commission that fits your business and the economics of a GMVLY-funded campaign route.
Discuss your Shopping targets →