How does Tophatter make money?

Tophatter makes money via commissions and other fees. Here is a closer look at the different ways Tophatter makes money:

• Commissions. Tophatter charges its users a flat 9% commission fee for final sales made on the platform. It also charges sellers and buyers shipping costs after purchasing products or items.

• Scheduling fees. Scheduling fees come in the form of bids and are known as Scheduling Fee Bids (SFBs). These are bids sellers place against their competitors on the platform for Auction Slots, or digital shelf space.

  These fees are low at $1 to $1.50. However, a high accumulation can often result in a considerable take for Tophatter.

• Processing fees. Processing fees are also charged on full sales prices of items; this includes the shipping rate and comes out to around 2.9% plus an additional $0.30 for each order.

• Incident fees. Incident fees occur when a buyer has a bad experience with a particular seller. These happen when in instances like when orders don't come in on time, items are not in good condition or are not as was described in the posting.

  The sellers pay incident fees on Tophatter. These fees come in varying amounts and depend on the incident.