What commission structure should I choose?

Businesses often have very complex commission structures that aren’t transparent, Trendful has made a quick analysis to help you find the commission structure that will work for your business needs.

For buyout offers, the commission structure will vary depending on the designer, the model, and the business’ inventory levels. 

For example, if Louis Vuitton is your best-seller, you may be able to reduce your commission and give higher offers to your customers. When increasing your offers and marketing them properly, the resale app is a powerful tool to expand your customer base and increase your sell-through rate. For more information about how to market the interface, read our introduction to marketing the Trendful resale app here.

Below find average ranges of the commission made by the retailer based on the payout option:

• Buyout: 40%-70%
• Consignment: 20%-50%
• Credit: an additional 5%-20% earnings on the offer

For more details about the commission structures you can find in the industry, read our introduction to creating a pricing strategy here.