Payouts and billing on the OTTO marketplace

Who handles payments?

All payments on the OTTO marketplace run through OTTO Payments, OTTO's own payment service provider. According to OTTO, sellers cannot use their own payment provider. The seller assigns the claim from each purchase to OTTO Payments, so shoppers pay OTTO Payments, not you directly.

That brings two advantages: according to OTTO, OTTO Payments takes on the risk of payment default, and shoppers can choose purchase on account, instalments, direct debit, prepayment, PayPal and credit or debit card. To register, you agree to the payment services framework agreement with OTTO Payments GmbH and pass a legitimation check.

When does OTTO pay out?

OTTO puts it like this: "Your balance will be paid out weekly, always on Thursdays, with a due date of 14 days." So you don't get your money right after each sale, but collected on a weekly cycle. Plan your cash flow accordingly – especially if you need to pre-finance a lot of stock for peak season.

How are fees billed?

OTTO deducts your costs directly from your revenue. According to the seller FAQ:

• Base fee: €99.90 per month, invoiced plus VAT and offset against your sales balance. If the balance isn't enough, the fee is collected by direct debit.
• Commission: depends on the category, charged on the selling price and shipping costs (both incl. VAT), plus a payment fee of 2.7%. Commission is invoiced weekly plus VAT and also offset.
• Bookable services such as advertising go through the same billing process.

Commission rates by category and a worked example are in OTTO marketplace fees and commission. Check current figures with OTTO before every calculation, as fees can change.

Where can you see payouts and receipts?

OTTO Partner Connect has a Finance area with your payment history – pending and past payouts. According to OTTO, it gives you an up-to-date overview at any time, with fees and commissions offset directly and displayed transparently.

OTTO also provides the end-customer purchase receipts in Partner Connect. OTTO creates these receipts on your behalf using the company details you entered – so keep them up to date. Shoppers see purchase and refund receipts in their customer account.

What happens to the money with returns?

OTTO Payments pays refunds to shoppers on the seller's instruction – according to its payment terms, usually within a few days after the return is registered on the marketplace. The shopper's refund claim still lies against the seller. Refunds affect your balance; expect more returns in peak season and payouts that vary accordingly.

Tips for bookkeeping and controlling

• Reconcile weekly: compare each payout with the week's sales, fees and refunds.
• File invoices: the base fee and commissions are invoiced plus VAT – your bookkeeping needs these documents.
• Look at ad costs separately: booked services such as ads are offset too. If you don't analyse them separately, you can't see what pays off.
• Plan cash flow: the weekly cycle means money arrives with a delay.

If you are just starting, the steps from registration to first sale are in How to sell on OTTO.

Think about revenue and ranking together

Your statement shows what you earned – but not why. Whether a drop in revenue comes from the product, the season or a lost search position only becomes clear if you track your rankings too. Watching the positions of your best-selling products, for example with MarktRank, is a useful complement to the financial figures.

Frequently asked questions