Updated July 2026
What big platforms really cost local businesses
National marketplaces commonly take 15–30% of every sale from the small businesses that depend on them — Amazon's referral fees run about 15% for most categories, Etsy's combined fees land near 20%, and delivery apps like DoorDash take up to 30% per order. The sticker percentage understates it: fees come off the sale, but they're paid out of profit.
The fee is on the sale. The pain is in the profit.
Here's the arithmetic platforms don't put on the pricing page. Say a local maker sells a $100 item that costs $70 to produce — a healthy 30% margin, $30 of profit. A 20% platform fee is "only" $20 of the sale… but it's two-thirds of the $30 profit. At a 15% fee, half the profit is gone. That's why fee percentages that sound survivable feel existential to the businesses paying them — and why margin, not fee rate, decides whether a platform works for you.
The verified numbers, platform by platform
We maintain a verified fee comparison (sources and dates on every figure) covering eighteen platforms. The short version: Amazon charges a referral fee of about 15% for most goods, before optional fulfillment and advertising costs. Etsy's stack — listing, transaction, payment processing, and frequently offsite-ads fees — combines to roughly 20% of the sale for many sellers. DoorDash commissions run up to 30% per order on its higher tiers, and Uber Eats and Grubhub occupy the same range. Lead-gen platforms (Thumbtack, Angi) work differently but often cost more: you pay per lead, win or lose, which can mean $150–$225+ in lead fees to win a single job. Details and per-platform pages: DoorDash, Etsy, Amazon, Thumbtack.
The three costs the percentage hides
1. Visibility isn't included. On most big marketplaces, ranking well means buying ads on top of the fee — sellers routinely spend another 10–15% of revenue on platform advertising just to be seen in search results they used to rank in for free.
2. The customer belongs to the platform. You often can't email your own buyers, can't see who they are, and can't bring them with you if you leave. You're renting demand, not building a customer base.
3. The dollars leave town. Fees flow to coastal shareholders, not the local economy. Survey data popularized by Civic Economics shows about $53 of every $100 spent locally recirculates in the community versus about $14 through national channels — platform fees are part of how that gap opens. More in the economic impact of shopping local.
The structural alternative: charge on profit, not sales
Good Circles inverts the model: a 1% fee on profit — not on the sale — with the business keeping 89% of profit and 10% of profit funding the nonprofit the customer elected. There's no ad spend to be visible (demand comes from nonprofit supporters seeking local businesses) and no credit card processing costs to the merchant. We'll be equally honest about the limits: whether that beats a given platform on per-sale cash depends on your margins, and Good Circles is local-first, not a national storefront. The full worked example is on the fees comparison, and our comparison with national marketplaces spells out where each option genuinely wins.
Questions
Platform fees FAQ
How much do marketplaces charge small businesses?
Commonly 15–30% of each sale. Amazon’s referral fees run about 15% for most categories; Etsy’s combined fees land around 20% once transaction, payment, and offsite-ad fees stack; DoorDash commissions run up to 30% per order. Lead-gen platforms like Thumbtack and Angi charge per lead whether or not you win the job.
What do platform fee percentages hide?
Three things: fees are taken from the SALE price but paid out of your PROFIT (a 20% fee on a 30%-margin product is two-thirds of your profit); visibility usually costs extra ad spend on top; and the customer relationship stays with the platform, not you.
What are Etsy and Amazon fees for a small business?
On the verified figures we maintain: Amazon’s referral fee is about 15% for most goods (plus optional FBA and ad costs); Etsy’s stack of listing, transaction, payment, and frequently offsite-ads fees combines to roughly 20% of the sale for many sellers.
Is there a lower-fee way to sell locally?
Structurally yes: a local marketplace can charge on profit instead of sale price. Good Circles charges a 1% fee on profit — the business keeps 89% of profit, and 10% of profit funds the nonprofit the customer elected. Whether that beats a given platform per-sale depends on your margins; the honest comparison lives on our fees page.
Keep 89% of your profit
A 1% fee on profit — if you don't sell, you don't pay. First 200 Mississippi businesses become Founding Merchants.