The verdict in three sentences
The commission must cover PSP fees, support and a margin, otherwise the marketplace loses money on every order despite rising volume. In 2026 rates range from 8 % to 20 %, but after 1.5 % PSP fees and 18 % VAT on commission, the real net collapses. The strategic choice: flat commission for everyone or volume-tiered commission to retain large vendors.
Flat or tiered: what really changes
A flat commission is simple to explain but penalizes your best vendors, who eventually want to leave. A tiered grid rewards volume and builds loyalty, at the cost of finer accounting. In Nairobi as in Abidjan, mature 2026 platforms adopt tiers.
| Vendor monthly volume tier | Flat commission | Tiered commission |
|---|---|---|
| 0 – 500,000 FCFA | 15 % | 18 % |
| 500,001 – 2,000,000 FCFA | 15 % | 14 % |
| 2,000,001 – 5,000,000 FCFA | 15 % | 11 % |
| 5,000,001 – 10,000,000 FCFA | 15 % | 9 % |
| 10,000,000 FCFA and up | 15 % | 8 % |
The tiered grid brings in more large vendors, which lifts total volume and offsets the lower rate.
From gross commission to real net platform
Here is why a 10 % commission does not leave 10 % in your pocket. Take a multi-vendor basket of 50,000 FCFA, platform commission 10 %.
| Item | Base | Amount (FCFA) |
|---|---|---|
| Total basket | — | 50,000 |
| Gross platform commission | 10 % | 5,000 |
| PSP capture fee | 1.5 % of 50,000 | 750 |
| VAT on commission | 18 % of 5,000 | 900 |
| Estimated support cost | ballpark | 600 |
| Real net platform | — | 2,750 |
| Effective net rate | — | 5.5 % |
The advertised 10 % commission actually yields only 5.5 % once PSP, VAT and support are deducted. In Nairobi, with M-Pesa B2C fees on payouts and a 10 % commission, the logic is identical: the headline rate is never the net rate.
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Mini case study
Fatou launches CocodyMarket in Abidjan with a single 10 % commission. On a month at 8,000,000 FCFA of volume, she thinks she earns 800,000 FCFA. After PSP fees (120,000 FCFA), VAT on commission (144,000 FCFA) and support (96,000 FCFA), her real net is 440,000 FCFA, i.e. 5.5 %. Switching to a tiered grid that attracts 3 large vendors, her volume rises to 14,000,000 FCFA and her net to 690,000 FCFA despite a lower average rate.
FAQ
Why does a 10 % commission not give a 10 % margin? Because PSP fees (1.5 %), VAT on commission (18 %) and support are deducted. The effective net often lands around 5.5 %.
Should VAT be charged on commission? In the WAEMU zone, commission is a service subject to 18 % VAT. You must collect and remit it, so build it into the split calculation from the start.
Flat or tiered to start? A simple flat commission (15 %) at launch, then a tiered grid as soon as vendors exceed 2,000,000 FCFA of monthly volume, to avoid losing them.
What minimum rate to not lose money? Below 8 %, a commission rarely covers PSP + VAT + support on small baskets. Aim for 12 to 15 % for low-volume vendors.
How to handle a multi-vendor basket? Compute the commission line by line, per vendor, then aggregate. Each vendor has their tier rate, which makes a per-line ledger essential.
Let's talk about your project. We model your tiered commission grid with VAT and PSP fees built in to guarantee your net margin. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
