4.5 Fees & surcharges

Introduction to Fees and Surcharges

0:00 All right. In this video, we go over fees and surcharges on ResaleOS. There are different types of fees that stores and sellers charge their vendors, consignors, customers, etc. We're going to go over all of them in this video. The main types are fees and surcharges, and then buyer fees and payout fees. These are kind of the three main transaction-based fees, and then we have recurring fees. Those happen recurringly over a certain period of time.

Understanding Surcharges and Their Application

0:37 I know this can be confusing, so let's go see some actual examples. Under settings, we have created a surcharges and fees section. We're going to call those fees surcharges going forward, and they're applied specifically on items, and they normally are actually calculated once the item sells. While the item is in store, you can see a fee is associated, a surcharge is associated with the item, but that surcharge has not actually materialized yet until the item gets

1:14 sold. We have different types of surcharges. The first type is a split price surcharge. This is taking off the split price before the split with the consignor or vendor is calculated. This can be confusing, and it is quite confusing if you just hear that. The great thing about this section is that you can view what this means on a mock transaction. If you sell an item for a thousand dollars, the split price surcharge, I apologize, is taken off on that item price before the split

1:52 price is calculated, before the amount that you divide with the consignor or vendor is actually calculated. In this case, I call this fee a listing fee. I call this split price fee a listing fee, and it's a two dollar fee that I remove from the item price before the split price is actually divided between the consignor and myself as the store. You can create split price surcharges as fixed amounts, as percentages, and you can decide who eats that fee, basically, whether it's the

Types of Surcharges: Split and Tag Price

2:30 consignor or you as the store, or if it's shared proportionally. Then you have tag price fees, tag price surcharges, which are taken off after the split is calculated on the full tag price. I call this tag price surcharge that I created a restoration labor fee, and it's applied to the consignor only. If we come over here, we see our split price was 998, and then it's divided 50-50 as per our agreement, our default terms, and you can see

3:08 only the consignor eats this restoration labor fee, which is a flat $25 fee, so their payout gets $25 deducted because of that. Then you also have another type of fee,

Card Payment and Buyer Fees

3:21 a surcharge, which is called the card payment surcharge. This is applied at POS on the amount paid by card. In this case, we're going to see an example for a sale that was fully paid via card. It's a percentage fee, and I specify it's shared. It's a percentage fee that's shared between the store and the consignor, and you can see the card processing fee here. It's a 2.9% total of the split price, which is shared between the consignor and the store.

3:53 Finally, in the end, you see what the consignor gets and the store gets on this mock transaction. Okay, so you can play around with this until you find the setup that you're looking for. You can apply a cleaning fee, a credit card processing fee, a consignment fee, an item fee. You can apply all sorts of fees, and you create them in the system here, directly in the surcharges, fees, and discounts sections. We also have a customer fee,

4:17 also called a buyer fee. This is a fee that does not affect the consignor payout, the vendor payout. It's fully applied to the buyer. This is a fee that only the buyer, only the customer sees. The consignor never sees this fee, and it's applied on top of the item price, and this is what the customer sees on the tags, on the labels that you have on your items in store. So the item actually, the item price includes the customer fee, but again, it's added on top, so it does not affect

4:51 the consignor payout. Okay, this can also be a flat fee or a tiered by price. It can be a percentage or fixed amount, etc. So again, customer fees are fees that are applied to the consignor fees paid by the buyer. They do not affect consignor payouts at all. It's just something that's added on top of the item's price. Okay, so these are basic surcharges and fees. There is another type

Payout Fees and Their Setup

5:18 of fee that some vendors and stores, sorry, some stores and merchants use, which is a payout fee. So every time they do a payout, whether that's a wire transfer or like a check payout, they charge a fee for that, and you can set those payout fees under consignor settings and then payouts. You can see I charge a flat $1.5 fee. You can also make this a percentage as well, and so every time I do a payout, I deduct a $1.5 fee from each payout to the consignor. Okay, so these are

5:58 kind of one-time fees that happen on a sale or happen on a payout. On the other hand,

Setting Up Recurring Fees

6:05 if you charge fees recurrently, you can set those up in the accounts page. Okay, so this is particularly useful for vendor malls who charge rent monthly. So you want to set up a recurring fee for your vendors. Let's take a look how that looks. Let's edit this consignor. Let's pretend they're a vendor. Let's make them a vendor as well. Okay, and under here, under recurring fees, you can add a recurring fee. So you can make it something like monthly rent,

6:43 and you can set the amount, like $200 a month. You can choose the frequency. You can decide when this recurring fee actually starts, and then you can say whether you want to deduct this from the consignor balance, the account balance, or whether you want to charge a card on file. That's really important because this can really improve cash flow for your business. If you can charge cards on file for these vendors, so that if their balance cannot cover the full amount, then

7:17 we can charge a card and make sure that rent is collected on time. Okay, let me see. I cannot do that because I have not connected a Stripe for payment processing, so I can only do deduct from balance right now. But if you connect your Stripe account, then you can charge cards on file. Now, the best way to do this is by just assigning a booth, in case you created booths to rent, assign a booth that's available for rent to this specific vendor. So we assign

7:49 them a booth, and I already specified this booth B3 is $105 a month, and so I just assign it, and then I can click on save, and then this vendor is going to start getting charged for renting this booth. You can actually assign multiple booths to one vendor. So now I can add another booth. Let's assign them to booth number C4 as well, and then this vendor is going to be charged for these two spaces that they're renting. So this booth is actually not available, so we'll just do

8:21 one. And that's pretty much it. That's what recurring fees are. The really nice thing about recurring fees, again, is that you can have the vendor add a card on file, or you add it for them, and so you can charge them. You can actually collect the payment always on time, really good for cash flow for your business, rather than just relying on them having enough balance in their

Managing Vendor Booths and Payments

8:45 account to cover for that recurring charge. There is so much more to vendor models and actually assigning booths and collecting rent. We have a whole vendor portal where vendors can enter the card details, where they can pick their booth themselves. We have a vendor map where you can manage vendors on a map. So we're going to cover all that in this module actually, but in a later video. For now, these are surcharges and fees. We saw buyer fees, and then traditional and regular

9:16 surcharges on items and whenever they sell. We saw payout fees, payout surcharges, and then we also saw recurring fees for vendor models and charging vendors and consignors recurrently. All right, that's it for this video. We're moving on to the next one.