How retail chains use commission and bonus to motivate store employees and drive sales.
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Retail increasingly uses commission-based compensation. With US retail sales exceeding $7 trillion annually, models range from pure hourly pay to aggressive commission structures.
| Store Type | Typical Model |
|---|---|
| Apparel/Fashion | Base pay + 1-3% commission |
| Electronics | Base + 2-5% on accessories/warranties |
| Furniture/Home | 5-15% of sale value |
| Luxury | 3-8% commission |
Sales Associates: OTE of $35,000-50,000 with 10-30% variable in commission stores.
Store Managers: OTE $50,000-75,000 with bonus on store goal achievement.