Understanding Purzle's Commission Structure

Understanding Purzle's Commission Structure

Purzle's transparent commission structure is designed to support vendor success while maintaining platform sustainability. This guide explains how commissions work, what you pay, and how to optimize your pricing strategy for maximum profitability.

Commission Overview

How Purzle Commissions Work

• Commission is only charged on successful sales
• No upfront fees or monthly charges
• Transparent, predictable pricing
• Competitive rates across categories

When Commissions Are Charged

• Customer completes purchase and payment
• Order is confirmed and processed
• Product is successfully delivered
• Return/refund period expires (where applicable)

• Cancelled orders (before shipping)
• Failed payments
• Returned items (commission refunded)
• Listing products on the platform

Commission Rate Structure

Standard Commission Rates by Category

Electronics & Technology (5.95%)

• Smartphones & Tablets
• Laptops & Computers
• Audio & Accessories
• Gaming & Entertainment
• Smart Home Devices

Fashion & Apparel (5.95%)

• Clothing (Men/Women/Children)
• Shoes & Footwear
• Bags & Accessories
• Jewelry & Watches
• Traditional Wear

Home & Living (5.95%)

• Furniture
• Home Appliances
• Kitchen & Dining
• Home Decor
• Garden & Outdoor

Health & Beauty (5.95%)

• Skincare & Cosmetics
• Hair Care Products
• Health Supplements
• Personal Care
• Fitness Equipment

Baby & Kids (5.95%)

• Baby Clothing
• Toys & Games
• Baby Gear & Equipment
• Educational Materials
• Safety Products

Sports & Fitness (5.95%)

• Exercise Equipment
• Sports Apparel
• Outdoor Gear
• Team Sports Equipment
• Fitness Accessories

Performance-Based Incentives

Quality Performance Bonuses

Maintain 4.8+ Star Rating:

• 1% commission reduction for orders in that month
• Enhanced search visibility
• Quality vendor badge

Zero Returns Policy Achievement:

• 1% commission reduction for products with <1% return rate
• Trusted seller designation
• Featured listing opportunities

Loyalty Rewards Program

• Year 1: Standard rates
• Year 3: 2% commission reduction
• 5+ Years: Platinum status with custom rates

Additional Fees Structure

Payment Processing Fees

Customer Payment Methods:

• Bank Transfer: No additional fee
• Digital Wallets: 1% processing fee

Note: Processing fees are separate from commission and charged by payment providers

Optional Service Fees

Purzle Fulfillment Services (Optional):

• Storage: ₦50 per item per month
• Picking & Packing: ₦200 per order
• Shipping Management: ₦150 per order
• Returns Processing: ₦300 per return

Marketing Services (Optional):

• Sponsored Listings: Cost-per-click pricing
• Featured Placement: ₦5,000 - ₦50,000 per month
• Email Marketing: ₦10 per 1,000 recipients
• Social Media Promotion: Custom pricing

Commission Calculation Examples

Example : Electronics Sale

Product: Samsung Galaxy Phone

Sale Price: ₦180,000

Category: Smartphones (5.95% commission)

Service Fees: ₦50

Payment Method: Bank Transfer (0% processing fee)

Calculation:

• Gross Sale: ₦180,000
• Commission (5.95%): ₦10,710

-Service Fees : ₦50

• Processing Fee: ₦0
• Your Earnings: ₦169,240

Optimizing Your Pricing Strategy

Cost Structure Planning

1. Product Cost: Your purchase/manufacturing cost

2. Purzle Commission: Category-specific rate

3. Service Fees: Purzle service fee

4. Shipping Costs: Delivery to customer

5. Packaging Materials: Boxes, padding, labels

6. Your Profit Margin: Target profit percentage

Pricing Formula

        Selling Price = (Product Cost + Packaging + Shipping + Desired Profit) ÷ (1 - Commission Rate - Service Fee)

Example Pricing Calculation

Target Scenario:

• Product Cost: ₦8,000
• Packaging/Handling: ₦500
• Shipping: ₦1,000
• Desired Profit: ₦3,000
• Total Base Cost: ₦12,500

Commission Context:

• Category Commission: 12%
• Expected Processing Fee: 1.5%
• Total Platform Fees: 13.5%

Calculation:

Selling Price = ₦12,500 ÷ (1 - 0.135) = ₦12,500 ÷ 0.865 = ₦14,451

Round to Market Price: ₦14,500

Verification:

• Selling Price: ₦14,500
• Commission (12%): ₦1,740
• Processing Fee (1.5%): ₦218
• Net Revenue: ₦12,542
• Costs: ₦9,500
• Actual Profit: ₦3,042 ✅

Competitive Pricing Strategies

• Research competitor pricing on Purzle
• Check other Nigerian e-commerce platforms
• Consider offline retail prices
• Factor in unique value propositions

• Adjust prices based on demand
• Seasonal pricing strategies
• Promotional pricing for volume sales
• Loyalty customer discounts

Commission Payment Schedule

Payment Frequency

Standard Schedule:

• Weekly Payments: Every Friday
• Minimum Threshold: ₦5,000
• Cut-off Day: Tuesday (for that week's payment)
• Processing Time: 1-3 business days

Alternative Schedules:

• Monthly Payments: Available upon request
• Instant Payments: Premium feature (₦500 fee per transaction)

Payment Method

• Fee: Free
• Processing Time: 1-2 business days
• Minimum: ₦5,000
• Maximum: No limit

Tax Implications and Compliance

Tax Responsibilities

Individual Vendors:

• Personal income tax applies to profits
• VAT registration required if annual sales exceed ₦25 million
• Keep detailed records of all transactions

Business Vendors:

• Corporate income tax applies
• VAT collection and remittance required
• Company income tax returns mandatory

Documentation Provided

Monthly Statements:

• Detailed transaction records
• Commission breakdown
• Tax calculation summaries
• Downloadable receipts

Annual Reports:

• Full year sales summary
• Total commissions paid
• Tax document support
• Performance analytics

Dispute Resolution

Commission Disputes

Common Dispute Types:

• Incorrect commission calculation
• Wrong category classification
• Processing fee discrepancies
• Volume tier miscalculation

Resolution Process:

1. Report Issue: Submit through vendor dashboard

2. Investigation: 2-3 business days

3. Resolution: Adjustment or explanation

4. Appeal: Available if unsatisfied

5. Final Decision: Within 7 days

Refund Scenarios

Commission Refunds:

• Product returns (full commission refund)
• Cancelled orders (before shipping)
• Fraud or chargeback cases
• Platform error corrections

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Understanding Purzle's commission structure helps you price competitively while maintaining healthy profit margins. Use this information to build a sustainable and profitable vendor business.