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The real cost of 30% commissions (it's worse than you think)

When a delivery marketplace charges "30%," most operators picture losing 30 cents on every dollar. The reality is far worse, because that 30% comes off the top line while your margins live at the bottom.

Run the numbers on a $100 order

Say a $100 order costs you $70 to fulfill — food, labor, packaging, overhead. That leaves $30 of profit. Now hand 30% of the ticket to a marketplace:

  • Revenue: $100
  • Marketplace commission (30%): –$30
  • Cost to fulfill: –$70
  • Profit: $0

You did all the work and kept nothing. Push the commission to 32% and you're now paying to make food.

Why direct ordering changes everything

A direct order on your own storefront carries zero commission. The same $100 order keeps its full $30 of profit (minus a couple percent for payment processing). You don't need more orders to make more money — you need to own the orders you already have.

Every order you move from a marketplace to your own channel is close to pure recovered margin.

What to do this week

  1. Pull your last three marketplace statements and total the commission line.
  2. Multiply by 12. That's your annual "rent."
  3. Ask what that number could fund: a new hire, a second location, your own marketing.

Most operators are stunned by step 2. That number is exactly what going direct is designed to give back.

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Put it into practice

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