GlossaryFees & settlement

Tiered commission (OTTO)

The tiered commission is a stepped OTTO commission model that applies different rates to price tiers of the same selling price, active in many product groups since 1 October 2024.

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For OTTO sellers, the tiered commission has been one of the most important cost models on the platform since October 2024: instead of a flat percentage on the entire selling price, OTTO applies several rates to individual price tiers in many product groups. The effect: in most tiered groups the average commission rate falls as the selling price rises; in Beauty and Drugstore it rises.

What is the tiered commission at OTTO?

The tiered commission is a stepped commission model that applies different commission rates to individual portions of the gross selling price.

Until 30 September 2024 the commission rate was applied as a flat rate to the entire selling price. Since 1 October 2024 the gross selling price can be split into several tiers, each with its own commission rate. OTTO calls this a "multi-stage" (translated) or "tiered" (translated) model. The reduction applies only to the portion above a price threshold, not retroactively to the entire selling price.

When does the tiered commission apply, and when not?

The tiered commission applies only in selected product groups; many categories continue to be charged at a flat rate.

OTTO runs two commission models side by side:

  • Flat commission: A single percentage is applied to the entire gross selling price. This is the "classic" model and continues to apply to some of the product groups.
  • Tiered commission: Several rates apply to different price tiers of the same selling price. Introduced on 1 October 2024 in many, but not all, product groups.

Which model applies to a specific product follows from the assigned product group. OTTO publishes the full overview at otto.market – assortment overview, including a CSV download with all current rates per product group.

How is the tiered commission calculated?

OTTO splits the gross selling price into the price tiers of the respective product group and applies the commission rate set for each tier to that portion.

The calculation is strictly tier by tier. The following example shows the procedure for a product from a product group with three tiers (19% up to EUR 150, 18% up to EUR 500, 17% above EUR 500) and a selling price of EUR 2,000:

TierShare of selling priceCommission rateCommission amount
up to EUR 150EUR 15019%EUR 28.50
EUR 150.01–500EUR 35018%EUR 63.00
above EUR 500EUR 1,50017%EUR 255.00
Total commissionEUR 2,000avg. 17.33%EUR 346.50

A common misconception: some sellers assume that from EUR 500 the 17% applies retroactively to the full price. That is not the case; the 17% applies only to the portion above EUR 500. In practice, the effective average commission is therefore almost always higher than the lowest tier rate.

How does the tiered commission differ from the flat commission?

With the flat commission, one rate applies to the entire selling price; with the tiered commission, different rates apply to different price tiers.

In effect this means: at low selling prices (e.g. below EUR 150) the difference is minimal, and both models end up with the same or almost the same commission amount. Only at higher order values do the tiers start to take effect. OTTO thereby creates an incentive for higher-priced assortments and value-added products; at the same time, the commission calculation in the accounts becomes more complex, because several rates can apply at once per order.

Where can I see the tiers for my assortment?

The tiers applicable to a product are shown in OTTO Partner Connect and in the weekly CSV invoice.

OTTO Partner Connect (OPC) shows at product level which product group, and therefore which commission model, applies. OTTO extended its invoice CSV as of 1 October 2024: for each commission range there are now three additional columns, ProvisionsbasiswertXInEUR (which portion of the selling price falls into the tier), ProvisionXInProzent (which rate is applied) and ProvisionXInEUR (which amount is charged). For products without tiers, the additional columns show 0.

Include the tiered commission automatically in the contribution margin

profitkonsole for OTTO handles the product group assignment including the current tiers automatically and calculates the commission per order tier by tier.

Looking for the full OTTO fee overview? OTTO marketplace fees 2026: commissions 7–22% + worked example →

profitkonsole

Contribution margin per item

Analyse OTTO sales, commissions and returns. Add your purchase prices and your own shipping costs to see the contribution margin.

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Frequently asked questions

Does the tiered commission apply to all OTTO product groups?+
No. OTTO applies the tiered commission only in selected product groups. In the remaining categories the classic flat commission continues to apply, with a single rate on the entire selling price. Which model applies to a product follows from the assigned product group.
Since when has OTTO had tiered commissions?+
Since 1 October 2024. Until 30 September 2024 the commission rate was applied as a flat rate to the entire gross selling price; since October 2024 the selling price can be split into several tiers, each with its own rate.
Does the lowest tier rate apply to the entire price above a certain price threshold?+
No, that is a common misconception. The lower rate applies only to the portion above the respective price threshold. The portion below continues to be calculated at the higher rate of the lower tier. The average commission is therefore almost always higher than the lowest tier rate.
Where can I see the tiers for a specific product?+
OTTO Partner Connect shows the product group, and therefore the commission model, for each product. In addition, since October 2024 the CSV invoice shows three columns for each commission range (base value, percentage, euro amount); for products without tiers these columns are filled with 0.

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