take rate

Definition

The percentage of transaction value a platform extracts as revenue, revealing how much you're actually taxing your users for the privilege of using your service. Too high and users revolt; too low and investors revolt.

Example Usage

Our marketplace had a 15% take rate, positioned as 'industry standard' but really just the maximum we could charge before sellers started defecting.

Origin

E-commerce and marketplace terminology from the 2000s

Fun Fact

Amazon's take rate for third-party sellers has crept up to nearly 50% when including all fees, proving that monopolistic platforms can charge whatever they want.

Source: Marketplace and platform business terminology

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