Commissions & Payouts
A vendor trusts the platform when the payout statement matches the orders. The commission rate matters, but clarity matters more.
Choose the commission basis
| Basis | Formula | When it works |
|---|---|---|
| Food subtotal | Commission × item total before tax and delivery | Most common; easy to explain |
| Gross order value | Commission × (food + delivery + fees) | Higher yield, but vendors dispute delivery fees |
| Per-order fee | Fixed amount per order | Low-value baskets; predictable |
| Category rate | Different rate per menu category | Alcohol, grocery or low-margin items |
| Tiered rate | Rate changes with monthly volume | Incentivises growth; harder to reconcile |
Who keeps the delivery fee?
Decide and document it. If the platform assigns the rider, the delivery fee usually offsets rider cost. If the vendor self-delivers, the fee may pass to the vendor. Mixing the two without a rule creates a statement that nobody can explain.
Refunds, discounts and tax
- Refund: deduct from the party at fault, not always the vendor. A late rider is a platform failure.
- Discount: decide whether the platform funds it or shares it with the vendor.
- Tax: commission tax and food tax may be separate lines. Do not treat tax as revenue.
- Chargeback: record it separately from a normal refund.
- Adjustment: use a reason code and a note, not a manual balance edit.
Payout cycle
Weekly payouts are common at launch; daily payouts are expensive to reconcile. Publish the cut-off day, the settlement delay and the bank-holiday rule. If a gateway settles in three days, do not promise vendors same-day payment from card orders.
What the statement should show
- Order count, gross food sales and tax.
- Commission rate and commission amount.
- Delivery fees collected and delivery cost borne by the platform.
- Discounts funded by the platform and by the vendor.
- Refunds, chargebacks and adjustments with reason codes.
- Opening balance, payouts and closing balance.
- A download link for order-level detail.
Negative balances. Decide how they are recovered: offset against the next payout, invoice, or security deposit. Put the rule in the vendor agreement before the first refund.