Airbnb's commission-based business model has killed it over the past years (yep, who hasn't heard of them)!
By relying on its hosts to provide the properties (and some super cool ones, check some cool ones out here) Airbnb focused on the following:
- Creating a user-friendly platform
- Attracting customers to their platform
And avoided (just as necessary, I might suggest):
- Managing properties
- Maintaining properties
- Acquiring properties
In short, they avoided property management!
Instead, Airbnb earns revenue through the fees charged to hosts for each booking (Airbnb made about $8.4 billion in revenue last year, sheesh, …).
Instead, Airbnb earns revenue through the fees charged to hosts for each booking (Airbnb made about $8.4 billion in revenue last year, sheesh, …).
The commission-based model allowed Airbnb to offer unique accommodation options to travelers worldwide (ever check out the OMG! category).
Why review whether a commission model might fit your online marketplace?
- Learn to Evaluate Business Models: Understanding commission-based models can help you evaluate online marketplace business models. With that understanding, assess your marketplace potential (e.g., are you going to buy a private jet or a toy plane!)
- Learn to Understand Industries: Having a good grasp of commission-based models will assist you in understanding factors that drive marketplace success.
- Learn How to Evaluate Marketplaces: Knowing the advantages of commission-based models will assist you in evaluating which commission models align best with your goals.
eBay is a great commission story. Like Airbnb, eBay operates on a commission-based model. This model has allowed eBay to scale its business quickly as the platform does not bear inventory costs.
eBay is a great commission story. Like Airbnb, eBay operates on a commission-based model. This model has allowed eBay to scale its business quickly as the platform does not bear inventory costs.
But more about this later. Please fill up your cup of coffee, and let's learn why you may want to consider a commission model for your online marketplace.
You'll Attract More Sellers with a Commission Model in Your Online Marketplace
Choosing a commission-based model for your online marketplace can attract sellers or providers (stay away from the sleazy spammers).
Commission-based models incentivize sellers to offer high-quality products and services as they only pay fees on actual sales.
Risk-averse entrepreneurs often find this attractive (who would have thought).
You are probably thinking, commission-based models in online marketplaces, why bother? Wouldn't it be easier to charge people an amount upfront? Wouldn't I be getting more money upfront if I charged a fee?
You are probably thinking, commission-based models in online marketplaces, why bother? Wouldn't it be easier to charge people an amount upfront? Wouldn't I be getting more money upfront if I charged a fee?
The thing is, the variety of products and sellers in a commission-based marketplace is often unmatched.
Just imagine. An online commission marketplace will have a better chance of experiencing that bustle of activity that makes your marketplace feel alive. Your transactions will be heard through the ding of email orders arriving. You'll feel the energy as your sellers focus on loading your marketplace with services and products! There's no risk for them to try!
A commission-based online marketplace is like a bustling farmers' market.
Farmers join the local market because they can sell without taking on much risk. Sellers join a commission-based online marketplace because they can offer their products without much financial risk. The commission-based model creates a mutually beneficial relationship between the marketplace and the seller.
Farmers join the local market because they can sell without taking on much risk. Sellers join a commission-based online marketplace because they can offer their products without much financial risk. The commission-based model creates a mutually beneficial relationship between the marketplace and the seller.
Commission marketplaces are all over:
- 51% of the top 100 marketplaces thrive by taking a commission from the transactions they process. (Sharetribe)
- 6.5% is the commission fee charged by Etsy for every transaction. (Etsy)
- 20% is the flat commission fee charged by Fiverr to its freelancers (Morgan Media)
Etsy successfully attracted a large and diverse group of sellers with its commission model. Etsy attracted (mainly women) sellers who offered a wide range of handmade and vintage goods. Everything from jewelry, clothing, and home décor (around 7.5 million users, can you believe that?)
Etsy also put in place several resources and support systems to help sellers succeed, including:
- A comprehensive seller handbook
- A seller community
- Access to marketing tools
Want to offer a commission-based marketplace?
- Invest in a user-friendly platform (try Yclas!)
- Offer training materials
- Offer excellent customer support
- Create a community with regular communication
- Provide opportunities for interaction and collaboration
Commission Rates in 2026: Headline Fee vs. What Platforms Really Earn
The numbers above date from 2023. The latest annual filings show something the headline percentages hide: the commission a platform advertises is rarely what it actually earns. Here is how the examples in this article compare today.
| Platform | Headline commission | What it actually earns (2025) |
|---|---|---|
| Airbnb | Moving all home hosts to a single fee taken from the host's payout, which most hosts pay at 15.5%. Under the old split fee the host paid 3% and the guest paid 14.1% to 16.5%. | $12.2B revenue on $91.3B gross booking value, about 13% |
| Etsy | 6.5% transaction fee, plus a $0.20 listing fee, payment processing of typically 3.0% to 6.5% plus a flat fee, and 12% or 15% on sales from Offsite Ads | 24.2% revenue take rate for Etsy Inc. (Etsy, Depop and, until June 2025, Reverb) on $11.9B gross merchandise sales, down 5.3% partly because Reverb was sold |
| Fiverr | Commissions paid by both buyers and sellers on every completed order | 27.7% marketplace take rate on $1,073.0M GMV (down 2.2%) |
| Poshmark | 20% on sales over $15, a flat $2.95 at $15 and under (restored in October 2024) | Not reported separately |
Sources: Airbnb service fee help page (accessed October 2026) and Q4 2025 shareholder letter (February 2026); Etsy 2025 Form 10-K; Fiverr 2025 Form 20-F; Poshmark fees as reported by Modern Retail (October 2024). The Airbnb percentage is revenue divided by gross booking value.
Five lessons for setting your own commission
- The commission is only part of your income. Etsy's transaction fee is 6.5%, yet Etsy Inc.'s 2025 revenue take rate was 24.2% because listing fees, payment processing, ads and shipping labels come on top. Plan paid extras (featured listings, promoted ads, seller tools) from day one rather than raising the base commission.
- Decide who pays. Airbnb's biggest recent change was not the size of its fee but who pays it: it is moving the whole fee onto hosts, who can adjust their prices to keep the same net earnings. Choose early whether buyers, sellers or both pay, and show the full price at checkout.
- Fee changes can backfire fast. In October 2024 Poshmark replaced its 20% seller fee with a 5.99% fee charged to both buyers and sellers, plus $1 to $3 per item for each. After seller backlash, with some sellers reporting double-digit drops in sales, it went back to the old fees within about three weeks. Test changes on a small group and announce them well in advance.
- A commission only earns while people transact. Fiverr's annual active buyers fell 13.6% in 2025, and its 20-F names AI reducing demand for simple, low-skilled services as one reason. A commission-only marketplace takes the full hit when demand drops, which is why Fiverr also earned $133.4 million from subscriptions, ads and other services.
- Start below the leaders. A new marketplace has no buyer traffic to justify a 20% cut. A lower rate, or a fixed fee on cheap items as Poshmark does, makes it easier to win your first sellers.
If you build your marketplace on Yclas, you can take a percentage, a fixed fee or both on each sale through Stripe Connect, and combine that with featured listings or seller memberships.
Scale Faster with a Commission-Based Online Marketplace
Scalability is one of the benefits of using a commission-based business model in the online marketplace.
With a commission model, you focus primarily on the following:
- Platform development
- Marketing
You skip the inventory or production and, with it, the costs.
Now, you might be thinking – is the scalability that big of a problem? Don't I then at least have control over my products then? What about quality control?
Now consider this:
- Imagine how nice it would be not to deal with inventory or production
- You wouldn't hear the complaints of people in production
- You wouldn't watch in fear as your bank account dwindles due to inventory costs
You would feel your shoulders relax as you see cash preserved (and you can afford that next family holiday the kids keep bugging you about).
Scalability is important.
Take Etsy; no inventory means time to focus on the platform. Platforms and apps. Etsy's app has been downloaded 2.5 million times! (Statista)
Take Etsy; no inventory means time to focus on the platform. Platforms and apps. Etsy's app has been downloaded 2.5 million times! (Statista)
Also, look at Fiverr. Fiverr is a popular online marketplace for freelancers and creative professionals.
Fiverr also operates on a commission-based model.
Freelancers get 80% of the total order value paid by the buyer for each project they complete through the platform.
The commission model allows Fiverr to scale its business quickly. Inside of handling inventory, Fiverr earns every time a project is completed.
As a result, Fiverr's become a leading provider of freelancing services, offering a diverse range of services to businesses and individuals globally.
As a result, Fiverr's become a leading provider of freelancing services, offering a diverse range of services to businesses and individuals globally.
Want to take action? Ensure you can scale? 
- Attract a diverse range of sellers through targeted outreach
- Offer competitive commission fees
- Creating a supportive and inclusive community for sellers
- Invest in customer acquisition
- Continuously iterate on the platform to make it user friendly
Commission Business Models Give You Lower Upfront Costs
Another reason why as an online marketplace operator, you might consider a commission-based business model because you'll have lower upfront costs.
As the operator, you're already working with existing products through your sellers.
Imagine the beautiful modern platform you might have if you invest all your resources into the platform instead of inventory and products. You'll have your friends wanting to join! And talk about your platform the next time you get together with them!
Instead of inventory, invest in customer acquisition:
- $160 per new customer acquired. That's how much Amazon (the eCommerce giant that uses a commission model as one of its sources of revenue) spends on customer acquisition. (HuntClub).
Instead of inventory, invest in the platform:
- 4-6 months is the typical length of time needed to develop a marketplace website (Syndicode).
Although, check out Yclas' marketplace platform for potential quicker deployment.
Poshmark also leverages commissions. Poshmark is an online marketplace that specializes in fashion and clothing.
By operating on a commission-based model without inventory, where sellers pay a fee for each sale, Poshmark keeps its costs low.
By operating on a commission-based model without inventory, where sellers pay a fee for each sale, Poshmark keeps its costs low.
Whether selling vintage clothing, designer items, or their wardrobe, Poshmark focuses on its platform. They are using their platform to reach a large and engaged audience of fashion-conscious buyers.
Want to lower upfront costs with a commission-based marketplace?
- Develop a prototype commission-based structure
- Compare your commission structure to your competitors
- Consider penetration pricing strategy as a start-up (meaning create a commission structure lower than your competitors)
- Re-evaluate your commission structure quarterly
Closing Summary
Choosing a commission-based business model for your online marketplace can offer numerous benefits, including:
- An increased amount of sellers
- Scalability
- Lower upfront costs
By reducing the costs associated with inventory and production, a commission-based model can allow marketplace operators to focus on the following:
- Developing a high-quality platform
- Improving the customer experience
Additionally, by aligning the interests of the operator and sellers, the commission-based model can drive growth and success for both parties.
How about you?
- Do you prefer paying for transaction fees in online marketplaces over subscriptions or other revenue models?
- How do you view commission fees in an online marketplace?
