Whatnot show math, part 1: what each fee is charged on

Two fees, two bases. Example data.

Whatnot charges two different fees on every sale, and they are not calculated on the same number. Knowing which base each one uses is the first step in show math.

This series works through the numbers behind a live show with example data from a made-up seller. The examples are in US dollars, and the method works the same in any currency.

Two fees, two bases

Commission is Whatnot’s share of the sale. It is charged on the item price only. Shipping and the tax the buyer pays are left out.

Payment processing works the other way round. It is charged on the full amount the buyer pays, including shipping and tax, plus a fixed amount per order.

Whatnot now sets the commission rate in tiers, based on your recent sales. This article uses 8% as an example rate so the math is easy to follow. Your own rate is printed on each order, and part 2 of this series covers how the tiers work.

One card, step by step

A card sells for $30.00 in a live show. The buyer adds $5.00 for shipping and $2.10 in tax, so they pay $37.10.

• Commission: 8% of $30.00 is $2.40.
• Processing: 2.9% of $37.10 is $1.08, plus $0.30, which makes $1.38.
• Fees together: $3.78.

That is about 12.6% of the item price. Notice that processing took more than a third of the total fee, even though it is the smaller percentage. That happens because it is charged on a bigger number and carries a fixed part.

The buyer’s shipping pays for the label and the tax goes to the tax authority, so neither of them is income for you. Your payout for this card is $30.00 minus $3.78, which is $26.22. And you have not counted what the card cost you yet.

Why the fixed $0.30 matters at a show

The fixed part of processing is charged per order. On a $30.00 card it is a small share. On a $3.00 card it changes the picture:

• $3.00 card, $5.00 shipping, $0.21 tax. Buyer pays $8.21.
• Commission: $0.24.
• Processing: 2.9% of $8.21 is $0.24, plus $0.30, so $0.54.
• Fees together: $0.78, or 26% of the item price.

The fixed $0.30 per order weighs more on cheap items. Example data.

Low-priced items in a fast show can look busy and still lose money once fees and item cost come off. If a buyer wins several items and they end up in one order, the fixed part is spread across more items. Check how your own orders were combined before you rely on that.

A whole show

Now the same math for a full show. The example seller sells 25 items.

• Item sales: $750.00.
• Shipping paid by buyers: $125.00.
• Tax paid by buyers: $52.50.
• Total paid by buyers: $927.50.

Fees:

• Commission: 8% of $750.00 is $60.00.
• Processing: 2.9% of $927.50 is $26.90, plus 25 orders at $0.30, which is $7.50. Processing total: $34.40.
• All fees: $94.40.

Payout before costs: $750.00 minus $94.40, which is $655.60.

Get Size Run Studio’s stories in your inbox

Join Medium for free to get updates from this writer.

Remember me for faster sign in

Then the costs that never show up on the Whatnot side:

• What the 25 items cost you: $410.00.
• Supplies such as top loaders, sleeves and mailers: $18.00.
• Giveaway items: $25.00.

Profit for the show: $655.60 minus $453.00, which is $202.60. That is 27% of item sales. The payout screen said $655.60, so the number that matters is less than a third of the number on the screen.

Payout is not profit. Example data.

Three lines to add after every show

To get from payout to profit, write down three things after each show:

1. Item cost for everything that sold.
2. Promotion and giveaways, including the value of anything you gave away.
3. Shipping you covered yourself, such as free-shipping promotions or a label you paid for after a mistake.

Three lines after every show.

With those lines, shows become comparable. A show that pays out $900.00 with expensive stock can make less than a $500.00 show with cheaper stock. Without the three lines you cannot tell.

A simple check against your orders

Pick one past show and do this once by hand:

1. From your order list, add up item prices. Multiply by the commission rate on your orders.
2. Add up the total buyers paid. Multiply by 2.9% and add $0.30 per order.
3. Compare the sum with the fees Whatnot charged for that show.

If the numbers are close, your model is right and you can reuse it. If there is a gap, look for refunded orders, orders that fell into a different payout period, or a different commission rate on some orders.

What comes next

Part 2 looks at tiered commission: how the rate follows your recent sales, and what that means for planning a slow week after a busy one.

If you want this math done for you, our Whatnot Profit Tracker logs what you paid and what each item sold for, applies an editable Whatnot fee preset and works out net profit, margin and ROI per item, with a monthly dashboard. You can type in your own commission rate. It works in Excel or Google Sheets, in English and German.

https://sizerunstudio.gumroad.com/l/whatnot-tracker?utm_source=medium&utm_medium=article&utm_campaign=whatnot-md_show1

Example data from a made-up seller. The 8% commission is an example rate; check the rate on your own orders. Not affiliated with or endorsed by Whatnot.