Seller Fee Calculator
Adaptive fee structure that automatically calculates transaction rates, subscription costs, and service charges based on seller metrics and program eligibility.
Solution
This fee calculation system provides marketplace sellers with transparent, personalized pricing based on their business profile. The system evaluates seller category (premium, standard, or basic), applying tiered fee structures that reward higher sales volume with lower transaction rates. Premium sellers receive the lowest rates starting at 8%, while standard and basic sellers have higher base rates adjusted by monthly sales performance.
Beyond base rates, the system analyzes seller performance ratings to offer additional discounts for high-quality merchants. Exceptional sellers with ratings above 4.8 can receive up to 3% rate reductions, while those with poor ratings face penalty charges. Special program participation unlocks exclusive promotional benefits. The calculator provides sellers with a clear breakdown of transaction fees, subscription costs, and any additional charges, helping them understand their total marketplace costs and incentivizing performance improvements.
How it works
The seller fee calculator applies business rules through several evaluation stages:
- Input Processing: The system receives seller data including category, monthly sales volume, performance rating, and special program status.
- Base Fee Determination: A decision table evaluates seller category and sales volume to assign the appropriate base fee rate and subscription tier cost.
- Performance Adjustment: A second decision table analyzes performance metrics and program participation to apply rate adjustments and determine eligibility for promotional benefits.
- Low Performance Penalties: Sellers with ratings below benchmarks receive rate increases and additional service charges.
- Fee Calculation: The final expression node calculates the effective fee rate, transaction fees based on monthly volume, and combines all charges for a total monthly fee.
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