One of the most common questions we get is: "How does the money work?" It's a fair question. Most platforms bury their fee structures in fine print, tack on hidden charges, and leave sellers guessing how much they'll actually earn. Lesuto does the opposite. Our commission structure is transparent, simple, and designed so that every participant wins on every transaction.

The 3-Way Split

Every sale on Lesuto is split three ways:

1. The Merchant receives their commission -- a percentage set by the supplier, typically ranging from 15% to 40% depending on the product category.
2. Lesuto takes approximately 10% as a platform fee, which includes credit card processing costs (roughly 3%).
3. The Supplier receives the remainder after the merchant commission and platform fee are deducted.

Here's a concrete example. Say a customer buys a handcrafted dining table listed at $1,200. The supplier has set a 25% merchant commission rate:

• Merchant earns: $300 (25% of $1,200)
• Lesuto earns: $120 (10% platform fee)
• Supplier earns: $780 (the remaining 65%)

That's it. No listing fees, no monthly subscription, no advertising surcharge, no fulfillment fee layered on top. One clean split.

How Suppliers Set Commission

Suppliers have full control over their commission rates. When they create their supplier profile, they specify the percentage they're willing to share with merchants. This rate applies across their entire catalog.

Why would a supplier give away 25% or more? Because they're not "giving it away" -- they're investing in distribution. Instead of spending $10,000 per month on Facebook and Google ads (with no guaranteed return), they're paying a commission only when a sale actually happens. That's performance-based marketing at its finest.

Higher commission rates attract more merchants, which means more storefronts, which means more visibility, which means more sales. Smart suppliers understand that a 25% commission on a sale that wouldn't have happened otherwise is infinitely better than a 0% commission on zero sales.

How It Compares to Other Platforms

Let's put Lesuto's fee structure side by side with the major marketplaces:

Amazon

• Referral fee: 8-45% depending on category (average ~15%)
• FBA fees: $3-$15+ per item for storage and fulfillment
• Monthly subscription: $39.99 for Professional plan
• Advertising: $0.50-$5.00+ per click (essentially required to be visible)
• Total effective cost: Often 30-50% of revenue after all fees

Walmart Marketplace

• Referral fee: 6-20% depending on category
• WFS fees: Variable per item
• Advertising: Growing requirement for visibility
• Total effective cost: 15-35% of revenue

Etsy

• Listing fee: $0.20 per item
• Transaction fee: 6.5%
• Payment processing: 3% + $0.25
• Advertising: 12-15% of sale price for Offsite Ads (mandatory above $10K/year)
• Total effective cost: 15-25% of revenue

Shopify (Self-Hosted)

• Monthly subscription: $39-$399/month
• Transaction fee: 0.5-2% (unless using Shopify Payments)
• App subscriptions: $50-$500+/month for essential functionality
• Theme: $100-$400 one-time
• Total effective cost: Fixed monthly overhead + transaction fees

Lesuto

• Merchant cost: $0 (they earn commission instead of paying fees)
• Supplier cost: Commission only when a sale happens (they set the rate)
• Platform fee: ~10% (includes CC processing)
• Advertising cost: $0 (merchants are the distribution network)
• Total effective cost for suppliers: Predictable, performance-based, no surprises

The difference is fundamental. On traditional platforms, you pay to play and hope for sales. On Lesuto, you only pay when sales happen, and the "payment" is a commission that funded the sale in the first place.

Why Transparency Matters

We publish our fee structure openly because we believe trust is the foundation of any marketplace. When a supplier knows exactly what they'll earn on every transaction, they can price their products accurately. When a merchant knows exactly what commission they'll receive, they can set realistic income goals.

Hidden fees erode trust. They create an adversarial relationship between the platform and its users. We don't want that. We want suppliers, merchants, and Lesuto to feel like partners, because that's exactly what we are.

The Promotion Guardrail

One unique feature of our system: merchants can run promotions and discounts on their storefronts, but they cannot discount more than their commission percentage. If a merchant earns 25% commission, they can offer up to a 25% discount -- funded entirely from their own commission. This protects suppliers from having their products devalued and ensures the economics stay healthy for everyone.

If a merchant tries to create a promotion that exceeds their commission, the system automatically disables it and notifies them. This isn't a restriction -- it's a guardrail that keeps the marketplace sustainable.

The Bottom Line

Lesuto's commission structure isn't just a fee schedule -- it's an alignment mechanism. When merchants earn more, suppliers sell more. When suppliers sell more, the platform grows. When the platform grows, more merchants join, and the cycle continues.

This is what we mean by "Let's Succeed Together." It's not a slogan. It's the math.