Commission Calculation

Should an e-Commerce operator working on Dropshipping modelcalculate this commission on the Base Price of a product or on Base Price + GST? 

For example, if the Base Price of a product supplied by the vendor is 1000, GST is 18%  then should the e-Commerce Operator apply his commission of 25% on 1000 or 1180?  Thanks in advance. 

Replies (3)
Quick Summary
This discussion explores how e-commerce operators using a dropshipping model should calculate their commissions. The core question is whether to apply commission on the product's base price or the total price including GST. The consensus suggests that commissions are typically calculated on the base price, but it ultimately depends on the specific contract or billing model agreed upon with vendors.

These would depend on billing model

Usually one should calculate Commission on 1000 usually

It depends on the contract.

Normally it happens on the base price.

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