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Why does a fixed fee weigh more on small orders?

Quick lesson1 min read

A fixed fee per transaction takes a larger share of revenue when the order is small. Work it out both in money and as a percentage of each sale.

An example with numbers

A hypothetical fixed fee of $0.50 is 5% of a $10 order and only 1% of a $50 one. Any percentage platform and payment fees come on top.

Try it with your numbers

Try both prices with the same fixed fee. Use the rates in your own contract and check what each percentage is calculated on.

Open the calculator

Example figures for learning purposes. They are not a recommendation and do not replace professional advice.

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