How GearTrader Fees Work

GearTrader keeps fees simple and transparent. Here’s how fees apply to both buyers and sellers using a real-world example.

A Typical Sale Scenario

Imagine a seller listing a Roland Jupiter-8 synthesizer with an Ask Price of $100.

For the Buyer

1. Platform Fee: GearTrader adds a 2.5% platform fee to the Ask Price to create the Listing Price.
   • Example: $100 Ask Price × 2.5% = $2.50. Listing Price: $102.50.
2. Shipping & Tax:
   • Sellers may choose to offer free shipping, local pickup, GearTrader shipping or flat rate.
   • Sales tax is dynamically calculated based on the buyer’s location.
3. Buyer Total:
   • Example:
   • Listing Price: $102.50
   • Shipping: $15
   • Tax (7%): $8.19 More about sales tax for marketplaces.
   • Total: $125.69

For the Seller

1. Platform Fee: The seller pays a 2.5% platform fee on their Ask Price, which is deducted from their payout.
   • Example: $100 Ask Price × 2.5% = $2.50.
2. Stripe Payment Processing Fee: Stripe charges 2.9% + $0.30, calculated on the total transaction amount (Listing Price + tax + shipping).
   • Example (no shipping or tax for simplicity):
   • 2.9% of $102.50 = $2.97
   • Stripe fee = $2.97 + $0.30 = $3.27
3. Seller Payout:
   • After fees, the seller earns:
   • $100 Ask Price - $2.50 (platform fee) - $3.27 (Stripe fee) = $94.23

Summary

• Buyers: Pay the Listing Price (Ask Price + platform fee), plus shipping and sales tax.
• Sellers: The platform fee (2.5%) is deducted from the Ask Price. Stripe’s payment processing fee (2.9% + $0.30) is also deducted from the total transaction.
• Example Summary:
  • Buyer pays $125.69.
  • Seller earns $94.23.