Understanding Discogs Selling Fees

In February 2022, we introduced our new PayPal payments solution to make payment simpler. This meant a new invoice system for sellers, which we explain in detail here in this document.

Invoices

After onboarding to the new PayPal payments solution, sellers will no longer receive monthly sales fee invoices. Instead, when an order is paid for, Discogs sales fees and taxes (referred to by PayPal as a Partner Fee or Partner Commission) that are collected by Discogs will be automatically deducted and directed to the appropriate party, as described below:

Note: Sellers should refund a buyer using the Send Refund option on the order page. Cancellation of the order is not refunding automatically sales fees and taxes. When a seller refunds a buyer, sales fees and taxes are almost immediately adjusted and returned accordingly. You don’t need to ask us for a credit anymore because you will see it directly in your PayPal account when the refund is processed. For more information about the refund process, please, visit New PayPal Payments Solution FAQ.

Partner Commission

On your PayPal invoice, you will see the line item "Partner Fee" (or “Partner Commission” for those with a PayPal Business account). This is the term used to encompass the total fees associated with your order. It includes the 8% fee for selling on Discogs, charged on the final price, along with all applicable taxes for your order (e.g. VAT, Japan consumption tax, etc). For more information about selling fees you can visit What Are The Fees For Selling On Discogs?

You will see this as a line item on your PayPal payment statement, describing the total costs we have taken from your buyer's payment.

PayPal payment statement excerpt with Partner Commission highlighted

So, in order to know exactly what Partner Commission includes in your order, you will need to consider the following: 

  • 8% Discogs’s Sales Fees applied to the item price (shipping cost excluded)
  • All applicable taxes (e.g. VAT, Japan consumption tax, etc)

So, see the following example :

Example order with both Discogs Sales Fee and VAT for the buyer’s country highlighted

In this order, the Partner Commission will be €8.13. It includes the following:

  • the Discogs’s Sales Fees of €1.84 ( 8% of the total price of the item);
  • the VAT for the buyer’s country, in this case, the Netherlands (21% of the item price plus shipping). You can find more information about VAT rates in the article EU & UK Tax Information

The line item titled “PayPal Fee” is PayPal's processing fees that are taken from the gross payment amount and directed to PayPal. For more information about PayPal fees, visit the PayPal Merchant Fees page.

Do you need more information? Please, contact us!

                                                                                                                                               

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