E-commerce

Commission in E-commerce

E-commerce has transformed retail and created new commission models that reflect the digital reality. The e-commerce market continues to grow significantly, and companies use commission to motivate both internal salespeople and external partners.

E-commerce commission models range from traditional B2B sales to affiliate marketing and marketplace structures, each with their unique characteristics.

Typical Commission Models

OTE for E-commerce Roles

On-Target Earnings in e-commerce varies by role and company size:

• Head of Sales: $130,000-200,000 annually
• Enterprise Account Executive: $100,000-160,000 annually
• Key Account Manager: $80,000-115,000 annually
• Affiliate Manager: $65,000-95,000 annually
• Inside Sales Rep: $55,000-75,000 annually

Affiliate Commission

Affiliate marketing is particularly widespread in e-commerce:

• CPA (Cost Per Action): Fixed amount per sale, typically $7-75
• Revenue share: Percentage of sales value, typically 5-20%
• Hybrid: Combination of fixed amount plus percentage
• Recurring: Ongoing commission for subscription products

Special Elements

E-commerce has several unique commission aspects:

• Returns: Commission is often recalled on customer returns
• Attribution: Complex rules for which channel gets credited for the sale
• Seasonality: Black Friday and Christmas constitute a large portion of annual sales
• Margin pressure: Commission must be balanced against often low product margins

Clawback on returns is standard in e-commerce, typically with a 14-30 day return period.

FAQ About E-commerce Commission

How is commission handled on discount codes?

Most companies calculate commission on the actual order value after discount. Some have minimum thresholds for order size.

Do affiliates earn commission on repeat customers?

It varies. Some programs only give commission on first purchase, while others have cookie windows of 30-90 days for repeat purchases.

How do accelerators work in e-commerce?

Many e-commerce companies offer increased rates at high volumes, e.g., higher affiliate commission at over 100 monthly conversions.