Customer-level activities include sales commission, shipping costs, and warranty repair costs.
Sales commission is an essential aspect of sales compensation. This is the amount a seller earns based on the number of sales. This is often extra money to supplement your standard salary.
However, commission rates for typical sales start at around 5%. This is typically the case for sales teams with a generous base salary. However, the average conversion rate is typically 20-30%. What is a reasonable commission rate for sales? Some companies offer commissions up to 40-50%.
To calculate your commission payment, multiply your sales by the sales commission rate. A 10% commission rate on a $10,000 product transaction would pay $1,000 in commission. You can apply a merchant-targeted commission variable if you have to pay a commission.
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