Flat-fee vs revenue-share e-commerce platforms: which costs less as you grow?

There are two ways e-commerce platforms charge you. A flat plan charges the same each month. A revenue-share model takes a percentage of your sales. Each is a fair deal at some sizes and a poor one at others.

How each model works

Flat fee. You pay a fixed subscription whether you sell ₹10,000 or ₹10 lakh. Your cost per order falls as you grow.

Revenue share. You pay little or nothing upfront and a percentage of sales instead. Your cost per order stays the same, so your total grows with your sales. Some platforms combine both: a modest plan plus a percentage on online payments.

Find the break-even point

If a flat plan costs F per month and the percentage model charges p% of sales, the break-even monthly sales are:

Break-even sales = F ÷ p

Example: a flat plan at ₹3,660 a month against a 3% revenue share. Break-even is ₹3,660 ÷ 0.03 = ₹1,22,000 of monthly sales. Below that, the revenue share costs less. Above it, the flat plan costs less. At ₹5 lakh, the revenue share would cost ₹15,000 against ₹3,660.

(Some revenue-share services apply the percentage to delivered orders rather than all orders, which reduces the bill if you have returns. Read the terms carefully.)

What the percentage is paying for

Revenue-share services often bundle help, such as marketing support or operations. That can be worth paying for early on, when you lack the time or skills. The question is whether you still want to pay a percentage when you can do those jobs yourself.

Beware of mixed models

Many platforms with a subscription also charge a percentage when you use an outside payment gateway. Shopify's India fee of 2%, 1% or 0.6% by plan is an example, and so are Dukaan's service fee and StoreHippo's per-order fee. Zoho Commerce and Orvexa charge no percentage on sales. Our real cost guide compares them side by side.

How to choose

• Pre-revenue or testing an idea: a low fixed cost or a percentage model protects your cash.
• Steady growth: a flat plan gives predictable costs and better margins as volume rises.
• Seasonal sales: a percentage model flexes with your peaks, but your festive-season bill could be large. Check whether a flat plan is still cheaper over the year.
• Moving between models: make sure you can move later. See switching platforms.

What to do next

Write down your expected sales for the next 12 months, month by month, and calculate both models for each month. The cheaper model overall, and the month where they cross, tells you what to choose.