Fees and Payment Policy
Sellers may be charged for using some of Khloro’s services. This Fees & Payments Policy explains your fees and taxes and how to pay them.
1. Types of Fees
2. Fee Avoidance
3. Paying Your Fees
6. Gift Cards, Credits, and Coupons
1. Types of Fees
Sellers may be required to pay the following types of fees. Please note that all fees are listed exclusive of any value-added tax (VAT) or similar applicable taxes (GST). See the Taxes section below for further details.
You will be charged a listing fee of $0.30 USD for each item that you list over the allowed free tier on our free basic account. You will only be charged a listing fee for creating or renewing a listing; there is no fee for editing a listing. You will be charged a listing fee whether or not the listed item sells. If you list multiple quantities of the same product, the initial listing fee will be $0.30 USD, and the listing will be automatically renewed at $0.30 after each of the items sells. Listing fees are reflected in your payment account and deducted at the time the listing is published or renewed. It’s important to note that listing fees are non-refundable.
The automatic renewals feature will automatically renew your listings at the end of the three-month listing period unless you choose to not use automatic renewals for a particular listing or for your shop. You can see the automatic listing status in your Listings Manager and may cancel automatic renewals at any time by selecting “Manual” instead of “Automatic” in the “Renewal Options” in the Listings Manager. You will be charged the listing fee of $0.30 USD for each of these listings until you cancel automatic renewals. Once you cancel, you will only be charged for the current listing period.
When you make a sale through khloro.com, you will be charged a transaction fee of between 4% - 14% of the price you display for each listing plus the amount you charge for delivery. If you are a Stripe or Paypal Payments user and you list your items in a currency other than your payment account currency, see the Currency Conversion section below for more details on the transaction fee. If you sell from Australia, the transaction fee will not apply to sales tax, Goods and Services Tax (“GST”), unless you have included those charges in your listing price. If you sell from anywhere other than Australia, the transaction fee will apply to the listing price (including any applicable taxes), postage price, and gift wrapping fee. Transaction fees are deducted from your current balance as each sale occurs and are reflected in your payment account.
Advertising and Promotional Fees
Khloro offers multiple services to help you advertise your listings and promote your shop, including Ads and Offsite Ads. If you use Khloro Ads, you select your budget, as set forth in more detail below. For more information, please see the Advertising & Marketing Policy.
If you purchase paid advertising through your Dashboard in Shop Manager, you can set a budget to limit the amount you’re willing to pay for Ads to promote your listings or shops. Your budget can be set at or above a predetermined minimum set by Khloro, and you will not be charged more than your maximum budget daily. All bids are made in United States dollars (USD). Ads fees may be charged on a recurring basis and are deducted from your current balance and reflected in your payment account. For more information, please see the Advertising & Marketing Policy.
Offsite Ads Fees
Khloro purchases offsite advertising from a network of participating partners, such as social networks and search engines. If such advertising includes your listing, a buyer clicks on it, and then orders from your shop within 30 days of that click, you will be charged an advertising fee on these orders (which we’ll refer to collectively as “Attributed Orders” and individually as an “Attributed Order”).
The Offsite Ads fee you are charged for Attributed Orders depends on your shop’s sales over the previous 365 days, as follows:
1. The standard fee you will pay is 14% on Attributed Orders
2. If your shop has made less than $10,000 USD in sales over the previous 365 days, as calculated on the first day of the month, you will pay a fee of 14% (as described in the section below) on Attributed Orders, unless you opt-out of participation in Offsite Ads for the duration your shop is under the $10,000 USD threshold. The 14% fee and opt-out apply until or unless you at any time meet the $10,000 USD threshold.
3. If at any time your shop has made sales of $10,000 USD or more over the prior 365 days (going back to 20th February 2019 and later), as calculated on the first day of the month, you will subsequently pay a fee of 12% (as described in the section below) on Attributed Orders, as of the beginning of the programme if you immediately qualify, and otherwise on the first day of the month following qualification. If you subsequently fall below the $10,000 USD threshold at a later date, you will still only be charged a 12% advertising fee for the lifetime of your shop. If you opted out of participation in Offsite Ads prior to meeting the $10,000 USD threshold, you will be required to participate and will be charged a 12% advertising fee on Attributed Orders for the lifetime of your shop upon reaching the $10,000 USD threshold. The prior opt-out while under the $10,000 USD threshold will no longer apply (even if you subsequently fall below the $10,000 USD threshold at a later date).
Beginning a month after initial calculations when the programme starts, perform subsequent calculations on the first day of each calendar month and give you notice if you have crossed the $10,000 USD threshold.
To calculate this $10,000 USD threshold, sales are calculated by multiplying item price by quantity (minus any discounts or formally cancelled orders). In-Person Payment orders, fees, or separately charged postage, taxes, or gift wrap. For sellers with shop currencies other than USD, the $10,000 USD threshold is calculated with the currency exchange rates used when the relevant sales were processed. Exchange rates used are variable and are provided by a third-party financial services company.
How Offsite Ads fees are calculated:
Offsite Ads fees apply to Attributed Orders and are charged as a percentage of the total order amount, which comprises the price you display for each listing plus the amount you charge for postage and gift wrapping and in some jurisdictions, taxes, as set forth below. The applicable percentage charge, either 12% or 15%, is determined as described above.
Sellers in good standing may opt-in to Khloro Plus, a subscription package offering an expanded set of tools for growing brands. The fee for a Khloro Plus subscription is $10 USD per month. Plus, subscription fees are deducted from your current balance each month and reflected in your payment account. We will charge sales tax on your monthly subscription fee for sellers in Australia.
Subscription fees will be added to your payment account on the same day every month in your domestic currency. For example, if you sign up on 5th March, your subscriptions fees will be added on 5th April, 5th May, and so on. When you sign up at the end of the month, your subscription fees will be charged to your payment account on the last day of the month. For example, if you sign up on 31st May, your subscription fees will be added on 30th June because that is the last day of the month. You can cancel your Plus subscription anytime by visiting the Your Subscription section of your Shop Manager’s Settings. You will have access to your Plus subscription until the end of that subscription cycle, and your final day of access will be identified in the Your Subscription dashboard. After your Plus subscription has ended, your shop will return to Standard, and you will no longer have a subscription fee added to your payment account.
Plus subscribers have the option to register free domains and select domain extensions like “.com”, “.net”, and “.ca” through our third-party provider, Hover. This discount is valid for the first year of domain registration. When your domain needs to be renewed after a year, it will be subject to a normal pricing structure.
Payment Processing Fee and Online Sales.
Khloro charges a payment processing fee for each transaction through Payments. Payment processing fees vary based on the location of your bank account. Specific markets may also charge a fixed deposit fee for disbursing seller funds under certain designated thresholds. The payment processing fee is assessed on the total amount of the sale, including tax and postage. Payment processing fees are deducted from the sale amount in your payment account. Deposit fees are deducted from your Available Funds and reflected in your payment account when your scheduled deposit.
Khloro offers sellers in specific locations the ability to purchase postage labels to fulfil their orders. The cost of the postage label will depend on the delivery carrier and the origin, destination, weight, and dimensions of the package. If you add signature confirmation or insurance, those fees will be added to the total cost of the label at the point of purchase. Sellers who purchase postage labels may also purchase parcel insurance through licensed insurance carriers. You must accept Stripe Payments or PayPal as payment methods to buy postage labels through Khloro. Postage fees and any adjustments are reflected in your payment account and deducted from your current balance.
Regulatory Operating Fees
Sellers in certain countries will be charged a Regulatory Operating fee on each transaction. A Regulatory Operating fee is a fixed percentage of the price you display for each listing plus the amount you charge for postage, which should include applicable taxes, and is charged, where applicable, in addition to other fees described in this policy. Regulatory Operating fees may vary per country and are charged due to the increased cost of operating in the relevant country, for example, as a result of additional costs of compliance with applicable regulation(s).
Personal Shopfront Fees
You can purchase our personalised website service to design your shop front. You’ll be charged a monthly subscription fee of $15.00 - $35 USD these services are only available on an annual plan. Where applicable, Khloro will charge sales tax on your monthly subscription fee for sellers located in Australia. Your first month’s fee will be pro-rated, and you will be charged the full subscription fee for each subsequent month. If you purchase a domain name through our partner, you will also be charged a fee to register the domain name and for any related services you purchase.
Your subscription fee will automatically renew on the first of the month. You’ll be responsible for paying the full subscription fee for that month based on a minimum 12-month subscription.
With the exception of the transaction fee, Offsite Ads fees, the Payment Processing fee, Regulatory Operating fees, and deposit fees convert fees from USD to your payment account currency at the market rate at the time the fee is reflected in your payment account. All fees appear in your payment account in USD. However, Payment users located in Bulgaria, Croatia, Czech Republic, Hungary, Poland, and Romania will have all fees deducted from their payment account in their designated payment account currency.
Transaction fees, Offsite Ads fees, Regulatory Operating fees: If you list your items in a currency other than that of your payment account, the transaction fee and, where applicable, the Offsite Ads fee and Regulatory Operating fee will be converted to your payment account currency at the market rate and reflected in your payment account.
To avoid incurring foreign exchange charges on your sales, Khloro recommends you list your items in the same currency as your payment account currency.
Any action by a seller to avoid paying a fee is considered fee avoidance and is strictly prohibited. This includes, for example, encouraging buyers to purchase an item in your Khloro shop through another venue. A transaction initiated on Khloro may not be completed off of Khloro. The price stated in each listing description must accurately represent the sale. Sellers may not alter the item’s price after a deal to avoid transaction fees, misrepresent the item’s location, or use another user’s account without permission.
Paying your Khloro Fees
Khloro will automatically deduct all fees owed from your payment account. Provided you have sufficient funds in your payment account no further payment action is required. Suppose your payment account does not contain adequate funds. In that case, you are responsible for paying any fees owed in full within 15 days of the date of your monthly statement, or the account will be considered past due. It may charge your card on file or take other actions to collect funds as laid out in the Recoupment section of Khloro’s Payments Policy. If you make a sale while you have an outstanding balance the net sale amount will be applied to your outstanding balance. You may pay your outstanding balance manually by credit card, debit card, or PayPal.
Your statement is available in your payment account at the beginning of each month and will detail all sales and fees activity from the preceding month. Khloro may suspend your selling privileges at any time pending payment of your outstanding balance.
Sales Tax on Subscription Fees
Where applicable, sales tax will be applied to your subscription fee and the Khloro Plus subscription fee charged by Khloro.
VAT on Seller Fees
Depending on your business status and location, Khloro may be required to apply VAT/GST on seller fees charged each month and remit it to the relevant tax authority. VAT is collected on all fees for sellers located in countries where VAT should be applied.
Gift Cards, Credits & Coupons
If you are registered to use Khloro Payments, you may accept payment by Gift Cards, Credits, and Coupons. Khloro also charges a payment processing fee.