Understanding Rootsy Seller Commissions and Marketplace Fees

When selling on Rootsy, it's important to understand the different fees associated with operating your online store.

Rootsy uses a combination of seller subscription fees and marketplace commissions. Payment-processing charges and certain other adjustments may also apply depending on the transaction.

This guide explains how seller commissions work, how they're different from subscription fees, and what can affect your earnings.

1. What Fees Do Rootsy Sellers Pay?

Rootsy's seller fee structure includes:

• Subscription fees: Recurring charges for your selected seller plan.

• Marketplace commissions: A percentage of eligible product sales.

• Payment-processing charges: Applicable charges associated with processing customer payments.

• Other adjustments: Refunds, chargebacks, shipping-related charges, or other amounts permitted under the applicable Seller Terms.

The charges that apply to a particular transaction depend on your plan, the transaction details, and the applicable terms.

2. Rootsy Seller Subscription Fees

Rootsy offers three seller subscription plans:

Eligible new sellers receive a six-month (180-day) free trial.

A valid supported payment method is required to activate the trial through Stripe.

No subscription fee is charged during the trial. Subscription billing begins afterward unless the subscription is cancelled beforehand.

Important: The free trial applies to subscription fees. It does not automatically waive marketplace commissions or other applicable transaction charges.

3. Rootsy Marketplace Commission Rates

The marketplace commission depends on your seller subscription plan.

These commissions are calculated on the eligible product selling amount.

Rootsy does not calculate its standard marketplace commission on separately charged shipping fees or sales taxes.

Applicable adjustments and exclusions are governed by Rootsy's Seller Terms.

4. How Is the Marketplace Commission Calculated?

Rootsy calculates its standard marketplace commission by multiplying the eligible product selling amount by the commission rate associated with your plan.

Commission = Eligible product selling amount × Commission rate

For example, consider a product sold for $100 CAD, before shipping and applicable taxes.

This example illustrates the marketplace commission only.

It does not represent the seller's final payout, because payment-processing charges and other applicable adjustments may also affect the final amount.

5. Are Shipping Charges Included in the Commission?

Rootsy's standard marketplace commission is calculated on the eligible product amount rather than separately charged shipping fees.

However, shipping and fulfilment costs may still affect your overall earnings.

Sellers should review their product pricing, packaging costs, carrier charges, and shipping arrangements when determining their selling prices.

6. Are Sales Taxes Included in the Commission?

Rootsy's standard marketplace commission is not calculated on separately charged applicable sales taxes.

Taxes collected on transactions are treated according to the applicable checkout, tax, and marketplace arrangements.

Sellers remain responsible for understanding their tax obligations, including GST/HST registration and reporting requirements where applicable.

7. What Are Payment-Processing Fees?

Rootsy uses Stripe to facilitate payments.

Payment-processing charges are separate from Rootsy's marketplace commission and seller subscription fee.

The payment-processing costs applicable to a transaction may depend on the payment method, Stripe arrangement, and applicable processing terms.

The amount ultimately borne by a seller, if any, depends on Rootsy's current fee arrangements.

Sellers should refer to their transaction records and applicable Seller Terms for the charges associated with their sales.

8. Do I Pay Commissions During My Six-Month Free Trial?

Yes. The six-month free trial waives eligible subscription fees, but it does not automatically waive marketplace commissions on sales.

For example, a seller on the Starter Plan may have no subscription charge during the trial while still incurring the applicable marketplace commission on completed eligible product sales.

9. How Do Seller Discounts Affect Commissions?

Rootsy allows sellers to offer discounted prices on eligible products.

The commission treatment of seller-funded discounts is determined by the eligible product amount and applicable transaction rules.

Before creating a discount, review the selling price, applicable marketplace commission, and other transaction costs to ensure your pricing remains sustainable.

10. How Do Refunds and Chargebacks Affect Seller Earnings?

Refunds, cancellations, disputes, and chargebacks may affect the amount available for seller payout.

Depending on the circumstances and applicable terms, Rootsy may make adjustments related to:

• Full or partial refunds.

• Chargebacks and payment disputes.

• Seller-responsible order problems.

• Applicable shipping or return charges.

• Previously deducted fees.

• Outstanding seller balances.

These adjustments are subject to Rootsy's Seller Terms, Refund & Dispute Resolution Policy, and applicable requirements.

11. How Do I Review My Earnings and Payouts?

The Rootsy Seller Dashboard includes financial information and payout-management features.

To review your available information:

1. Sign in to your Rootsy seller account.

2. Open your Seller Dashboard.

3. Review the displayed sales and balance information.

4. Open Withdraw to review available payout details.

5. Check the relevant transaction information and payout status.

Available balances may differ from gross product sales because of commissions, applicable charges, refunds, holds, and other adjustments.

The timing of a payout depends on the applicable account, payment-processing, and payout requirements.

Frequently Asked Questions

Does Rootsy charge a commission on every eligible product sale?

Rootsy applies the marketplace commission associated with your seller plan to eligible product sales, subject to the applicable terms and transaction adjustments.

What are the commission rates?

Starter: 11.99%.

Growth: 10.99%.

Pro: 9.99%.

Does Rootsy charge a commission on shipping?

Rootsy's standard marketplace commission applies to the eligible product amount, not separately charged shipping.

Does Rootsy charge commission on GST/HST?

The standard marketplace commission does not apply to separately charged sales taxes.

Are commissions waived during the free trial?

No. The six-month free trial waives eligible subscription fees, not marketplace commissions.

Are Stripe fees the same as Rootsy commissions?

No. Payment-processing charges and Rootsy marketplace commissions are separate.

Will I receive the full product selling price in my bank account?

Not necessarily. Your final payout may reflect marketplace commissions, applicable payment-processing charges, refunds, chargebacks, holds, and other adjustments.

Can my earnings be affected by a refund or dispute?

Yes. Approved refunds, payment disputes, and other applicable adjustments may reduce or temporarily affect the amount available for payout.

Where can I see my payout information?

Sign in to your Seller Dashboard and review the available balance and Withdraw sections.

Need Help Understanding Seller Fees?

If you have questions about subscription charges, commissions, seller earnings, or payout deductions, contact Rootsy Customer Support.

Support Centre: https://support.rootsy.ca/support/home

Email: support@rootsy.ca

Please include your store name and relevant order or transaction reference when contacting support.

For your security, do not share complete banking details, payment card numbers, passwords, or verification codes.

Rootsy — Stronger Together, Locally Rooted.