A take rate is the share of each transaction a platform keeps as its fee, usually expressed as a percentage of the sale value. It is the main way marketplaces, app stores and payment networks earn from the trade they enable.
Table of Contents
Types of take rate
- Flat: the same percentage on every sale, whatever its size.
- Tiered by volume: the rate falls as a seller’s sales grow.
- Tiered by tenure: the rate falls the longer a customer relationship lasts.
Key factors
- Value added. Platforms that bring demand, handle payment and carry risk can charge more than those that only list.
- Digital or physical. Take rates are often around 30% on digital goods but usually 5% to 25% where physical delivery is involved.
- Ease of leaving. Sellers who can easily move to rivals or sell direct push take rates down. Locked-in sellers pay more.
- Headline or effective. Large sellers often negotiate lower rates, so the published rate can overstate what the platform really earns.
Examples
Valve. Valve’s Steam store took 30% of every game sale until late 2018. It then cut the rate to 25% on a game’s sales above $10 million and to 20% above $50 million. The change came as some of the biggest publishers were starting to sell through rival stores.
Booking.com. Booking.com charges hotels a commission on each stay, typically 15% or more of the room price. In May 2024 the European Commission named it a gatekeeper under the Digital Markets Act, which stops it requiring hotels to match its prices on their own websites. Regulation now limits how it protects its take rate.
Frequently asked questions
What is the difference between a take rate and a commission?
They are often the same. Take rate usually means a platform’s total revenue as a share of everything traded on it, which can include payment, advertising and service fees as well as the headline commission.
What is a good take rate for a marketplace?
There is no single number. It depends on how much the platform does for each sale and how easily sellers can leave. Many physical-goods marketplaces sit between 5% and 20%.
Why do platforms lower their take rates?
To win sellers from rivals, to grow a new category, or under pressure from regulators and courts. A lower rate can raise total revenue if it brings in much more trade.
How does a take rate differ from platform pricing?
The take rate is one price: the cut on each transaction. Platform pricing covers every charge across all sides, including subscriptions, listing fees and subsidies.