Set the decision boundary before using the numbers
Inputs and records to align
- One marketplace, market, category, contract and effective date. (not complete)
- A matched product or SKU group with comparable tax and currency treatment. (not complete)
- Marketplace price, commission base, fulfilment, payment, returns, storage and promotion costs. (not complete)
- Channel-specific setup and operating costs for the test horizon. (not complete)
- An incremental-order scenario separated from shifted DTC orders. (not complete)
- Inventory allocation, settlement dates and a service or cancellation boundary. (not complete)
Build one transparent decision model
Incremental marketplace contribution = marketplace order contribution - channel operating cost - displaced DTC contribution
- marketplace order contribution
- Incremental fulfilled orders multiplied by retained contribution per marketplace order (CU per test period) — settlement records or labelled scenario
- channel operating cost
- Marketplace-specific setup and period costs not already in order contribution (CU per test period) — contract, invoice or scenario
- displaced DTC contribution
- Contribution lost from orders shifted away from the direct channel (CU per test period) — matched observation or scenario
Shared overhead allocation can support a whole-business view but should not replace the incremental go/no-go calculation.
- Reconcile the current DTC order contribution baseline.
- Build the marketplace order cost stack from the current contract.
- Define an incremental-order and DTC-substitution range.
- Add channel-specific setup and operating costs once.
- Map inventory commitment and settlement timing beside contribution.
- Launch only a bounded test with a contribution floor, inventory cap and review date.
Worked example: a bounded marketplace launch
Invented test: 300 incremental marketplace orders at 9 CU contribution, 1,200 channel operating cost and 450 CU displaced DTC contribution.
| Line | Calculation | CU |
|---|---|---|
| Marketplace order contribution | 300 × 9 | 2,700 |
| Channel operating cost | entered test-period cost | (1,200) |
| Displaced DTC contribution | entered scenario | (450) |
| Incremental channel contribution | 2,700 - 1,200 - 450 | 1,050 |
| Case | Changed input | Result | Decision signal |
|---|---|---|---|
| Lower incrementality | 180 orders | (30) | Stop or redesign test |
| Base | 300 orders | 1,050 | Validate cash and inventory |
| Higher displacement | 1,200 CU displaced | 300 | Review channel role |
Review the operational trade-offs before acting
- Comparing channel revenue without matching contribution boundaries.
- Applying a headline marketplace fee to the wrong base.
- Ignoring fulfilment, storage, promotion, return and support costs.
- Counting every marketplace sale as incremental.
- Committing inventory without a settlement-cash plan.
- Assuming customer access or ranking persists after the test.
Decision questions
- Should the marketplace price match the DTC price?
- Compare current contract constraints, customer proposition and retained contribution by channel; the guide does not impose price parity.
- How long should the test run?
- Choose a horizon long enough to observe fulfilment, returns and settlement while keeping inventory and operating exposure bounded.
Sources and methodology
- Marketplace Fee Profit methodology — Margin101: Fee-base, net-proceeds and order-contribution mechanics.
- Multi-Channel Profit Comparison methodology — Margin101: Comparable channel contribution and shared-cost boundaries.
Test the editable scenario
- Marketplace Fee Profit Planner
Set a viable listing price after marketplace, payment and fulfilment fees
- Multi-channel Profit Comparison
Compare retained contribution across direct and marketplace channels
- Inventory Funding Gap Planner
Identify the peak cash funding gap between inventory payments and customer collections