Understanding Rootsy Seller Commissions, Transaction Fees and Payout Deductions

When you sell products on Rootsy, the amount you earn may differ from the total amount a customer pays at checkout.

Rootsy charges marketplace commissions based on your seller subscription plan. Other applicable transaction costs, refunds, payment disputes, and adjustments may also affect your final earnings.

This guide explains how Rootsy seller commissions work, how discounts affect sales calculations, and why your available payout balance may differ from your sales total.

1. How Rootsy Seller Fees Work

Rootsy's seller fee structure includes two main charges:

Seller Subscription Fees

These are the recurring charges associated with your selected Starter, Growth, or Pro subscription plan.

Marketplace Commissions

These are percentage-based fees charged on eligible product sales.

Payment-processing costs and other applicable financial adjustments are separate considerations.

The amount ultimately available for withdrawal depends on the terms of the transaction and your seller account.

2. Rootsy Marketplace Commission Rates

Rootsy offers three seller subscription plans.

The commission rate depends on the seller plan applicable to the transaction.

Lower commission rates are one of the benefits of higher-tier seller plans.

Important: Monthly subscription fees are separate from the commission charged on eligible sales.

3. What Amount Is the Commission Calculated On?

Rootsy's standard marketplace commission is calculated on the eligible product selling amount.

Separately charged shipping and applicable sales taxes are excluded from the standard commission base.

For example, suppose a customer purchases a product with the following amounts:

In this example, the standard commission is calculated on the eligible $100.00 product amount, not the combined total including separately charged shipping and taxes.

Other transaction costs or adjustments may still apply.

4. Commission Calculation Examples

The following examples demonstrate how commission rates work on a $100 CAD product sale before other applicable costs or adjustments.

These examples illustrate marketplace commission only.

The remaining product amount is not a guaranteed payout amount. Actual seller earnings may also be affected by other applicable transaction costs, refunds, or adjustments.

5. How Product Discounts Affect Commissions

Rootsy allows individual sellers to offer product discounts.

When a seller discount reduces the eligible product selling amount, the applicable commission calculation must reflect the transaction's configured pricing rules.

For example, consider a product originally listed for $100 CAD with a 10% seller discount.

The customer's discounted product price is $90.00 before applicable shipping and taxes.

The exact commission treatment of discounts should be confirmed against the transaction records and Rootsy's configured payment rules.

Do not assume the commission is always based on either the original or discounted amount without reviewing the applicable transaction.

6. Are Shipping Charges Included in Marketplace Commissions?

Rootsy's standard marketplace commission does not apply to shipping charges billed separately from the product price.

Shipping costs are managed according to the applicable checkout arrangements, shipping configuration, and Rootsy's Shipping & Fulfilment Policy.

For physical products, shipping amounts may depend on:

• Package dimensions and weight.

• Shipment origin and destination.

• Carrier service.

• Applicable shipping discounts or promotions.

• Other fulfilment arrangements.

Shipping charges or adjustments may affect transaction reconciliation, even though they are not part of the standard marketplace commission base.

7. Are Sales Taxes Included in Marketplace Commissions?

Applicable sales taxes charged separately at checkout are excluded from Rootsy's standard commission base.

Taxes may include GST, HST, or other applicable Canadian sales taxes, depending on the transaction.

The collection, reporting, and remittance responsibilities for sales taxes depend on applicable laws and marketplace arrangements.

Sellers remain responsible for understanding their own tax obligations.

Consult a qualified tax professional if you need advice specific to your business.

8. Understanding Payment-Processing Charges

Rootsy uses Stripe to support marketplace payment processing and seller payouts.

Payment processing may involve fees separate from Rootsy's marketplace commission.

However, the amount and allocation of payment-processing charges depend on Rootsy's configured payment arrangements and applicable terms.

Sellers should not assume that a particular processing percentage or fixed fee is automatically deducted from every transaction.

If your transaction records show a processing-related deduction, review the details provided or contact Rootsy Customer Support for clarification.

9. How Seller Subscription Fees Are Charged

Rootsy offers recurring seller subscriptions.

The current monthly prices are:

• Starter: $14.99 CAD.

• Growth: $29.99 CAD.

• Pro: $39.99 CAD.

Subscription charges are distinct from product-sale commissions.

Eligible sellers may receive a promotional six-month subscription trial.

During an eligible subscription-free trial, the subscription fee is waived according to the promotional terms, but marketplace commissions still apply to eligible sales.

After the trial expires, applicable subscription charges may begin unless the subscription has been cancelled in accordance with its terms.

For more information, review the Seller Plans, Subscriptions and Fees Knowledge Base folder.

10. Why Your Seller Earnings May Differ From the Customer's Checkout Total

A customer checkout total may include several different amounts:

• Product prices.

• Seller discounts.

• Applicable shipping charges.

• Sales taxes.

Your seller earnings are calculated separately.

Depending on the transaction, the amount available for withdrawal may reflect:

• Marketplace commissions.

• Applicable transaction-processing charges.

• Refunds.

• Chargebacks.

• Shipping-related adjustments.

• Outstanding account balances.

• Payout holds.

• Other permitted deductions or adjustments.

Do not use the full checkout amount as your expected earnings.

11. How Refunds Affect Seller Earnings

When Rootsy approves a full or partial refund, the associated seller transaction may be adjusted.

For example, a refund may affect:

• Earnings previously recorded for the sale.

• Funds awaiting payout.

• Available withdrawal balance.

• Future seller payouts.

• Other applicable transaction amounts.

The actual adjustment depends on the refund amount, payment status, applicable fees, and Rootsy's seller terms.

Sellers should not independently send refund payments outside Rootsy's authorized process.

12. How Order Cancellations Affect Seller Earnings

An order cancellation may change the amount payable to a seller.

For example, an order cancelled before fulfilment may require a refund of the affected purchase amount.

Rootsy's Refund & Dispute Resolution Policy also provides for a potential $15 CAD seller-caused cancellation fee per affected order, plus applicable non-recoverable costs.

The fee may apply when a cancellation results from seller-related problems, such as:

• Unavailable inventory.

• Failure to fulfil an order.

• Other seller-caused cancellation circumstances.

Applicable fees and deductions depend on Rootsy's current policy and the circumstances of the cancellation.

Repeated seller-caused cancellations may also result in account action.

13. How Chargebacks Affect Seller Balances

A chargeback occurs when a customer disputes a card transaction through their financial institution or payment provider.

Examples include claims involving:

• Unauthorized payment.

• Product not received.

• Incorrect charge.

• Product materially different from its description.

A chargeback may result in:

• Temporary restrictions on funds.

• Seller balance adjustments.

• Refund-related deductions.

• Other applicable dispute costs.

When a chargeback occurs, sellers should provide relevant order and fulfilment evidence through Rootsy's approved dispute process.

The final outcome depends on the payment provider's decision and applicable terms.

14. What Are Payout Deductions or Adjustments?

A payout deduction or adjustment is an amount that affects the seller's balance or withdrawal.

Depending on the circumstances, adjustments may relate to:

• Marketplace commissions.

• Refunds and cancellations.

• Chargebacks.

• Shipping discrepancies.

• Applicable transaction fees.

• Outstanding marketplace obligations.

• Corrections to previous transactions.

• Other amounts permitted under the Seller Terms.

Not every seller will encounter every type of adjustment.

Review the relevant transaction records to understand the amounts actually applied to your account.

15. Can Rootsy Temporarily Hold Seller Earnings?

Rootsy's Seller Terms permit payout holds or restrictions in certain circumstances.

Possible reasons include:

• Incomplete seller verification.

• Banking verification issues.

• Suspected fraud or security concerns.

• Refunds and unresolved disputes.

• Chargebacks.

• Outstanding marketplace obligations.

• Repeated fulfilment failures.

• Seller policy violations.

• Other legal or compliance requirements.

If your account shows a payout restriction, review the available notice and contact Rootsy Support for clarification.

A payout hold does not necessarily mean that the funds have been permanently forfeited.

16. How to Review Your Seller Transactions

To review earnings and deductions:

1. Visit www.rootsy.ca.

2. Sign in to your Seller Dashboard.

3. Open the relevant Orders, Withdrawal, or available payment-management section.

4. Locate the transaction you want to review.

5. Confirm the product selling price.

6. Check any seller discount.

7. Identify the applicable subscription plan and commission rate.

8. Review available refund, dispute, or adjustment information.

9. Compare the results with your recorded earnings or withdrawals.

If the amounts do not reconcile, contact Rootsy Customer Support.

17. What if a Commission Is Calculated Incorrectly?

If you believe Rootsy has applied the wrong commission:

1. Confirm which seller subscription plan applied to the transaction.

2. Check the applicable commission rate.

3. Review the eligible product selling amount.

4. Check whether a seller discount was applied.

5. Confirm that separately charged shipping and sales taxes were not included in the standard commission base.

6. Review any other transaction adjustments.

7. Contact Rootsy Support if the discrepancy remains.

Include the order number, product amount, commission shown, and amount you expected.

Do not send passwords or sensitive financial credentials.

18. Maintaining Accurate Financial Records

Sellers should maintain appropriate business and accounting records.

Useful information includes:

• Gross product sales.

• Discounts provided.

• Marketplace commissions.

• Subscription fees.

• Applicable transaction fees.

• Shipping and fulfilment costs.

• Refunds.

• Chargebacks.

• Seller withdrawals and payouts.

• Applicable sales taxes.

Regular reconciliation between Rootsy's seller records and your business bank account can help identify discrepancies.

Consult a qualified accounting or tax professional for business-specific advice.

Frequently Asked Questions

Does Rootsy charge a commission on every sale?

Rootsy charges a marketplace commission on eligible product sales according to the seller's applicable plan and transaction terms.

What are Rootsy's commission rates?

Starter is 11.99%, Growth is 10.99%, and Pro is 9.99%.

Is the monthly subscription included in the commission?

No. Seller subscription fees and marketplace commissions are separate.

Does Rootsy charge commission on shipping?

The standard commission excludes separately charged shipping.

Does Rootsy charge commission on sales taxes?

The standard commission excludes separately charged applicable sales taxes.

Are discounts included when calculating commission?

Discounts affect the eligible product selling amount. The precise commission calculation should be checked against the transaction's configured pricing rules.

Does Stripe charge additional fees?

Payment processing may involve separate fees, but whether specific charges are deducted from seller earnings depends on Rootsy's applicable arrangements.

Do I pay commission during my six-month subscription trial?

Yes. An eligible subscription-free trial waives the subscription fee, not standard marketplace commissions.

Why is my seller balance lower than my sales total?

The difference may result from commissions, refunds, payment processing, disputes, pending funds, payout holds, or other applicable adjustments.

What happens to commission when a customer receives a refund?

The commission and associated earnings may be adjusted according to the refund and applicable transaction rules.

Can a chargeback reduce my earnings?

Yes. Chargebacks may result in payout holds, deductions, or other financial adjustments.

Can Rootsy hold my payout?

Rootsy may apply payout holds in circumstances permitted under its Seller Terms.

How do I dispute an incorrect deduction?

Contact Rootsy Support with the relevant order or transaction reference, the amount deducted, and your explanation.

Where can I check my available balance?

Review the relevant payment or withdrawal information in your Rootsy Seller Dashboard.

Need Help Understanding a Seller Charge?

If you have questions about marketplace commissions, transaction adjustments, available earnings, or payout deductions, contact Rootsy Customer Support.

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

Email: support@rootsy.ca

Please include:

• Your registered store name.

• Your seller account email address.

• The relevant order or transaction number.

• The amount in question.

• A description of the charge or discrepancy.

• Supporting transaction information, where available.

For security, do not share account passwords, one-time verification codes, full banking credentials, or payment card security codes.

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