Marketplace Economics

Marketplace fees explained: commission-free vs marketplace pricing

Food delivery fees can be confusing — commissions, service fees, delivery fees, and more. Here’s a clear breakdown of how marketplace pricing works, how commission-free pricing differs, and what each model costs you.

Quick answer

There are two pricing models in food delivery. Commission-based marketplaces take a percentage of each order — typically 15–30% from the restaurant — plus customer-facing delivery and service fees. Commission-free platforms charge a flat subscription instead and let you set your own customer fees as pricing levers. For operators who want to control their own economics — keeping the margin and deciding the fees — a commission-free platform like Ordering.co is the stronger model.

What are marketplace fees?

“Marketplace fees” is an umbrella term for the several different charges that appear on a food-delivery order. Some are paid by the restaurant, some by the customer:

Restaurant commission Paid by the restaurant
A percentage of each order’s value, commonly 15–30%, charged by the marketplace for access to its audience and delivery network.
Delivery fee Paid by the customer
A charge to the diner for delivery, which varies by distance, demand, and whether they hold a subscription like a delivery pass.
Service fee Paid by the customer
An additional percentage-based fee on the order subtotal that the marketplace charges the customer.
Small-order fee Paid by the customer
A flat surcharge applied when an order falls below a minimum subtotal.
Marketing / sponsored listings Paid by the restaurant
Optional spend to rank higher or run promotions inside the marketplace app — effectively raising the total cost of each order won this way.
Payment processing Usually the restaurant
Card-processing costs, sometimes bundled into commission and sometimes charged separately.

How commission-based marketplace pricing works

On a third-party marketplace, the headline cost is the restaurant commission — a percentage of every order. Because it’s a percentage, the cost scales with your sales: the more you sell, the more you pay. The marketplace also charges the customer delivery and service fees, and offers paid placement to restaurants that want more visibility.

The trade-off is more than money. The marketplace owns the customer relationship and data — you’re paying for access to diners rather than building a direct line to them. That’s great for discovery, but it caps how much of your own economics you actually control.

How commission-free pricing works

Commission-free platforms invert the model. Instead of a cut of each order, you pay a flat subscription and keep the order revenue. You take orders under your own brand, own the customer data, and — importantly — you decide the customer-facing fees. Delivery fees and service fees become your pricing levers, set to balance margin against conversion, rather than charges a marketplace imposes.

Commission-based vs commission-free: side-by-side

What matters Commission-based marketplace Commission-free (Ordering.co)
Restaurant cost 15–30% of every order Flat subscription
Scales with volume Yes — cost rises as you sell more No — predictable as you grow
Who sets customer fees The marketplace You — fees are your levers
Customer data & relationship Owned by the marketplace Owned by you
Branding The marketplace’s app Your brand, white-label
Discovery Strong built-in audience You drive traffic; run your own marketplace
Best for First-time discovery Owning margins & repeat orders

Marketplaces remain useful for discovery; many operators run both a marketplace presence and a commission-free channel they own. Fee figures are typical U.S. ranges and vary by provider.

Customer fees as a pricing lever

One of the biggest advantages of running your own platform is that customer-facing fees become tools you control. A small delivery or service fee, set thoughtfully, can cover delivery costs and protect margin without hurting conversion — and you can adjust it by zone, order size, or time of day. On a marketplace, those fees are decided for you. We cover this in depth in customer fees as a marketplace pricing lever.

The economics: what each model costs you

The clearest way to see the difference is the math. At a 15–30% commission, a restaurant doing $10,000/month in delivery pays roughly $1,500–$3,000 every month in commission alone — and that figure climbs as sales grow. A flat subscription stays put while your volume rises, so more of every additional order stays with you. That’s why moving repeat customers onto a commission-free channel is the durable fix for delivery margins.

Why commission-free pricing wins for operators

Ordering.co is built on the commission-free model: a flat subscription, your own branded ordering apps, your own delivery with a built-in driver app, and full control over your customer fees. You keep the margin, own the customer data, and decide the pricing levers — instead of paying a percentage of every order to a marketplace. Marketplaces can still play a role for discovery, but for owning your economics, commission-free is the stronger model, and Ordering.co is built for it.

The bottom line

Commission-free pricing is the model that keeps your margin and your control — a flat fee instead of 15–30% per order, with the customer fees set by you.

Use marketplaces for discovery if they help, but build your core on a commission-free platform you own. Ordering.co is the right choice for operators who want to control their own economics.

See commission-free pricing in action

Get a walkthrough of branded ordering, your own delivery, and the pricing levers you control — with a flat plan matched to your volume.

Get a demo & pricing

Frequently asked questions

What fees do food delivery marketplaces charge?
Marketplaces charge several fees: a restaurant commission (typically 15–30% of each order), customer-facing delivery and service fees, sometimes a small-order fee, optional marketing or sponsored-listing costs paid by the restaurant, and payment processing. Some are paid by the restaurant and some by the customer.
How much commission do marketplaces take from restaurants?
Restaurant commissions commonly range from 15% to 30% of order value, depending on the marketplace and the plan tier, with higher tiers buying more visibility. Because it’s a percentage, the cost grows as your sales grow.
What’s the difference between commission-based and commission-free pricing?
Commission-based pricing charges a percentage of every order and the marketplace owns the customer. Commission-free pricing charges a flat subscription, lets you keep the order revenue and customer data, and lets you set your own customer fees. Commission-free is more predictable and keeps more margin as volume grows.
Who pays marketplace fees — the restaurant or the customer?
Both. Restaurants pay the commission (and any marketing spend), while customers pay delivery, service, and small-order fees. On a commission-free platform you run yourself, you decide which customer fees to charge and how much.
Can I set my own delivery and service fees?
On your own commission-free platform, yes. With Ordering.co, delivery and service fees are pricing levers you control — you can tune them by zone, order size, or time to balance covering costs with keeping conversion high. On a marketplace, those fees are set for you.
Is commission-free cheaper than a marketplace?
As volume grows, yes. A flat subscription stays the same while a 15–30% commission rises with every order. Many operators use marketplaces for first-time discovery and move repeat customers onto a commission-free channel they own to protect margins.

Take control of your delivery economics

Book a demo to see Ordering.co’s commission-free model — branded ordering, your own delivery, and the fees you control.

Get a demo & pricing

Why Start with Ordering.co?

Most marketplaces are stuck paying commissions, juggling third-party tools, and struggling to scale. That’s not you.

With Ordering.co, you’re in complete control—your brand, your platform, your profits. Build a multi-store, multi-channel empire with automated ordering, delivery, marketing, and loyalty tools designed for real-world success.

Own it. Scale it. Dominate your market.

 

Frequently Asked Questions


What is Ordering.co, and how does it work?

Ordering.co is the best all-in-one platform for local-commerce from restaurants to stores or marketplaces.

Here are just a few things you can do with Ordering.co:

  • Create and customize an online store and native apps to increase your sales.
  • Manage orders in real-time, products, inventory, payments, delivery zones, and delivery with in-house drivers or external delivery companies.
  • Create special discounts, coupons, and loyalty campaigns.
Do you offer White-Labeled solutions?

Yes, we do offer white-labeled solutions. Our fully documented API allows development agencies and resellers to quickly and easily get up and running with our 100% white-label ordering solution. This means you can brand our platform as your own, offering a seamless experience for your customers without having to invest time and resources in building your own ordering system from scratch.


Our white-labeled solution is ideal for businesses of all types and sizes looking to enhance their online presence and streamline their ordering and management processes. With Ordering.co's white-label solution, you can focus on what matters most: providing an exceptional experience for your customers while we take care of the technology behind the scenes.

Will you be there to help?
 
Yes, of course! Our support team will answer all your questions. Our moto is "Customer Success". We will help you to get the most out of Ordering.
 
Are there any commissions?
 
No, we only charge a very small transaction fee for orders and delivery jobs. We have plans available to save even more.

For enterprises/companies, prices are optimized for your success, even with unlimited transactions options without fees; please contact our sales team.

Can I cancel my account at any time?
 
Yes, if you ever decide that Ordering.co isn’t the best online ordering or logistics platform for your business, simply cancel your account.
 
Who owns my data?
 
You do. Ordering will never claim to own the rights to your data. In fact, if you ever want to cancel your account, you can request all your data be exported and sent to you.
 
In what countries can I use Ordering.co?
 
You can use Ordering.co in every country in the world.
 
Can I change my design?
 
Of course! Ordering.co has built the tools so that you can personalize your website and apps with your branding.
 
Can I use my domain name?
 
Of course, we always thrive your business to succeed, and branding is one of the most important, so get your domain in your ordering website at no cost. We also provide everyone a forever free tryordering.com domain name when they sign up.
 
Where can I find tutorials & guides?
 
We keep adding articles and information about our Ordering products to our knowledge base. From quick guides to tips & advice, our knowledge base has everything you need to start your business with us. Click here to visit our knowledge base.
 
Do I get free web hosting and API access?
 
Yes, Ordering.co includes secure, unlimited hosting and API access on all plans.
 
Do you offer any discounts?
 
Yes, Ordering.co offers discounts for companies and enterprises that can commit to 12, 24, or 36 months plans.