Marketplace payouts explained

What happens between a sale and a marketplace payout?

Once a buyer pays for something on a marketplace, the platform takes care of collecting the payment. It keeps its commission and any fees that apply, then pays out the rest to you as the seller. If you're based in another country, the money might need to cross a border and get converted before you actually receive it.

The flow here includes three main steps. First, the buyer pays in their own currency. Next, the marketplace holds onto those funds for a while, depending on its policies. Finally, if your account uses a different currency, the marketplace converts it, deducts any charge or commission, and sends the payout to your bank account.

Payout schedules, reserves and holds

The payout schedule tells you how often money moves from the marketplace to you. This could be every day, once a week, or a set time after each sale. Some platforms keep a reserve, which is part of your sales money, to cover things like refunds, chargebacks, or product returns. If you're a new seller or you work in a category with more disputes, this reserve can be significant.

So before you choose a platform, look carefully at both the payout schedule and reserve terms. Delays or holds can limit your working cash even when you're making sales regularly. Ask these questions:

• How many days after each sale do you release seller funds?
• Do you apply a rolling reserve, and what releases it?
• Which payout currencies can I select?

Currency conversion and fees on payouts

If the buyer’s payment currency is different from the one your bank uses, the marketplace will convert the amount. This is done at a rate the platform sets (often with an extra margin above the true market rate). That margin can make a big dent and is not usually shown as a separate deduction. To spot it, compare your final payout with the mid-market exchange rate from the same date. You'll see how much you lost to currency conversion.

Besides that, check for any extra transfer fees for moving money to your bank. Your own bank could add a conversion fee or a receiving charge as well. If you're getting card payments, those carry their own costs, which we discuss in our guide to cross-border card fees. Some banks give you local account details in the currency you want, so the payout may arrive through local bank rails.

Frequently asked questions