Bonanza Fee Formula and Boost Tiers
Bonanza's fee structure combines a percentage-based commission with a flat transaction fee.
The formula is:
Total Fee = (Final Offer Value x Boost Rate) + $0.25
Final Offer Value (FOV) = Sale Price + Shipping Charged to Buyer
The four boost tiers and their commission rates:
| Boost Level | Rate | Fee on $50 FOV | Net Profit |
|---|---|---|---|
| No Boost | 3.5% | $2.00 | $48.00 |
| Low Boost | 9% | $4.75 | $45.25 |
| Standard Boost | 14% | $7.25 | $42.75 |
| High Boost | 19% | $9.75 | $40.25 |
Each boost level increases listing visibility across Google Shopping and partner advertising channels.
The trade-off is straightforward: higher visibility costs more commission per sale.
Worked Example: $75 Item Across All Boost Levels
Consider a seller listing a $75 item with no shipping.
Here is how fees and net profit compare:
- No Boost (3.5%): $75 x 0.035 + $0.25 = $2.88 fee, net profit $72.13
- Low Boost (9%): $75 x 0.09 + $0.25 = $7.00 fee, net profit $68.00
- Standard Boost (14%): $75 x 0.14 + $0.25 = $10.75 fee, net profit $64.25
- High Boost (19%): $75 x 0.19 + $0.25 = $14.50 fee, net profit $60.50
Moving from No Boost to High Boost on a $75 item costs an extra $11.63 per sale.
A seller would need the boost to generate enough additional sales volume to offset that per-item cost.
How Shipping Affects Your Fees
Bonanza includes buyer-paid shipping in the Final Offer Value, which directly increases the commission base.
For a $150 item with $15 shipping at Standard Boost (14%):
- FOV = $150 + $15 = $165
- Platform Fee = $165 x 0.14 = $23.10
- Total Fee = $23.10 + $0.25 = $23.35
- Net Profit = $150 - $23.35 = $126.65
If that same item had no shipping charge, the total fee would drop to $150 x 0.14 + $0.25 = $21.25, saving $2.10 per sale.
Sellers offering free shipping should price items to absorb both the shipping cost and the higher FOV-based commission.
