Is the 3% fee based on the grand total including tax, shipping, and other charges?
Yes, the 3% attribution fee is based off of the grand total, which includes taxes, shipping, and miscellaneous charges and minus any discounts that were applied.
Initially we had a pricing model based on a higher percentage of the net profit because we wanted it to be as accurate as possible. It took shipping, taxes, discounts, and even cost of goods into account.
But what we found was that most merchants didn't track their cost of goods and were not as interested as we thought they would be in the net profit.
So we looked at a few other vendors in the space and saw that they were based off of the grand total, and that seemed to be the most straight forward number to look at, so we reduced my percentage and changed the pricing model to be based off of the grand total.