What Is the Short Order Fee and Why Is It Applied?

Modified on Fri, 25 Apr at 2:07 PM

The short-order fee ensures the platform always earns a minimum commission. If an order is too small and doesn’t meet the commission target, the customer pays a small extra amount to make up the difference. It can be calculated either as a percentage of the item total or as a fixed value.

✅ Example:

Admin Commission Type: Percentage

Admin Commission Value: 15%

Minimum Admin Commission Value: ₹100

Now, if a customer places an order with an item total of ₹150:

1. Commission normally earned = ₹150 × 15% = ₹22.50

2. But your minimum commission target is ₹100

3. So the system calculates the short order fee as:

₹100 - ₹22.50 = ₹77.50

Result: The customer will see an extra ₹77.50 as a short order fee, so the admin still receives a total of ₹100 as commission.


✅ Example:


Admin Commission Type: Fixed

Fixed Commission Value: ₹50

Minimum Admin Commission Value: ₹100

Commission earned: ₹50


➡️ Short order fee = ₹100 - ₹50 = ₹50

So the system adds ₹50 as a short order fee, which the customer pays.

You will get your commission on the orders.

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