How to Measure Marketplace Commission

The headline commission percentage is not the same as the total cost of a marketplace order. To measure the channel properly, use order-level statements and separate contractual charges, promotions, delivery, refunds and operational costs.

Define what you are measuring

Keep three figures separate:

• Contracted marketplace charges: commission, service charges, payment-related charges, subscriptions and other agreed fees.
• Net settlement difference: the difference between relevant gross order values and the amount paid after all adjustments.
• Order contribution: revenue remaining after platform costs, food, packaging, delivery, refunds and other variable costs.

Calling all three “commission” makes the result difficult to compare and hides the cause of poor performance.

Collect the correct records

• Current marketplace agreement and fee schedule.
• Order-level sales export.
• Settlement statement.
• Promotion and sponsored-placement reports.
• Refund and adjustment detail.
• Bank deposit.
• Food, packaging and delivery assumptions for contribution analysis.

Check the calculation base

For each fee, establish whether it is calculated on:

• item subtotal;
• VAT-inclusive or VAT-exclusive value;
• amount before or after discount;
• delivery or service charges;
• tips;
• cancelled or refunded orders;
• another platform-defined amount.

Do not apply the displayed percentage to a guessed base. Recalculate several actual orders from the statement.

Order-level calculation

Step	Value to identify
1	Restaurant-attributable gross order value
2	Commission or service charge
3	Payment, delivery or other order-related charges
4	Restaurant-funded promotion
5	Refund or adjustment
6	Net amount attributable to the order or settlement

Where the platform does not allocate every line to an order, measure at settlement-period level and keep the limitation visible.

Effective contracted cost

For a defined period:

1. Total the marketplace charges that are directly attributable to the restaurant’s orders.
2. Separate advertising, equipment and subscription charges if they are not order-based.
3. Divide the relevant charges by the chosen gross order-value base.
4. State the period, channel, service model and assumptions.

This gives an effective percentage for that period, not a universal market rate.

Promotion treatment

For each promotion, record:

• customer discount;
• restaurant-funded amount;
• platform-funded amount;
• commission calculation before or after discount;
• additional participation or visibility charge;
• incremental order value;
• possible movement of existing full-price orders into the offer.

A promotion that increases order count can still reduce contribution.

Refunds and cancellations

Check:

• whether commission is reversed;
• who bears the food cost;
• who bears delivery cost;
• whether a customer adjustment appears in the same or later statement;
• whether the restaurant can challenge the allocation;
• what evidence is required.

Do not treat every settlement reduction as commission. Label refunds and complaint adjustments separately.

Add operational contribution

To decide whether the channel is worthwhile, subtract:

• food cost;
• packaging;
• restaurant-funded delivery;
• remakes and waste;
• incremental labour;
• support and reconciliation time where measurable;
• sponsored placement and restaurant-funded offers.

Keep fixed overhead separate unless the purpose of the model is clearly defined. Do not manipulate the allocation to make one channel appear artificially strong or weak.

Compare channels fairly

Use the same:

• basket band;
• delivery area;
• daypart;
• menu mix;
• promotion level;
• refund treatment;
• delivery model;
• staffing assumptions.

A direct collection order and a marketplace-delivered order serve different customer journeys. Show the difference rather than presenting one percentage as a complete comparison.

Monthly worksheet

1. Record gross restaurant order value by platform.
2. Record each contracted fee category.
3. Record promotion and sponsored spend.
4. Record refunds and adjustments separately.
5. Match the net payout to the bank.
6. Calculate effective contracted cost.
7. Calculate contribution using consistent assumptions.
8. Investigate unexplained changes from the previous period.

Warning signs

• The effective cost cannot be reproduced from statements.
• A new fee category appears without explanation.
• Promotion funding is unclear.
• Refunds are deducted twice or not linked to orders.
• Payouts cannot be matched to the bank.
• Staff use the net deposit as the sales figure.
• Comparison with direct ordering excludes acquisition or delivery differences.

Related guides

• Payments — the main guide for the wider topic.
• Marketplace Payments and Commission — the broader guide that frames this implementation.
• How Marketplace Payments Work — a closely related operational control to review alongside this page.
• Marketplace Payout Issues — a closely related operational control to review alongside this page.

Official guidance checked

• HMRC: VAT record keeping and invoices
• HMRC: what to include in a VAT return

Guidance checked: 24 July 2026. Marketplace rates and tax treatment are specific to the current agreement and business circumstances.