Why: the goal or problem

Imagine a craft market where makers list goods and buyers order. Fixed charges reach makers even on weeks without a sale.

How: work toward a solution

A fictional craft marketplace processes a 100 sale, retains a 10 platform fee and allocates 90 to the maker. Stripe Connect illustrates application-fee flows; this is a simplified allocation, not its transfer sequence. Taxes, processing fees and refunds are omitted, so 10 is not profit.

A platform takes a share of a mediated sale.

Craft marketplace · illustrative example

Transaction fees

Craft marketplace · one sale

Buyer pays 100
Maker allocation90
Platform fee10

100 = 90 + 10. Allocation only; not the transfer sequence. The fee is not profit.

Fictional amounts. Taxes, fees and refunds omitted.

The buyer pays 100; the fictional 10% fee allocates 10 to the platform and 90 to the maker. The buyer receives the craft item. This allocation does not establish which party is the legal seller or who funds refunds.

What: the concept

Transaction fees — Transaction fee revenue comes from facilitating trades between buyers and sellers. It differs from referring a visitor elsewhere and does not itself determine the contractual seller.

Define responsibilities and combine fees with optional subscriptions.

Source