I’m planning to list my cloud kitchen in Bengaluru on Magicpin. Do they charge an upfront fee to get listed, and what is their commission on orders?
Magicpin does not charge any upfront listing or registration fees to get your cloud kitchen on their platform. Their primary source of revenue is a commission that is charged as a percentage on every order you receive through them. This commission is negotiable and is calculated on the final discounted price the customer pays.
The ‘Zero’ Cost for Listing Your Kitchen
My friend recently listed his new pasta kitchen from Jayanagar, Bengaluru, on Magicpin. He was very pleased to learn that there was no one-time fee for the onboarding or registration process. The entire process of signing up, submitting documents, and going live on the platform was completely free of cost. This is the standard practice for most food aggregator platforms.
The Main Cost: Commission on Each Order
The primary cost for my friend is the commission that Magicpin deducts from each order’s payout. His negotiated commission rate is 18%. This is a percentage of the final order value and covers the cost of Magicpin’s platform, marketing, and often, the delivery facilitation through their ONDC integration. It’s important to note that this commission rate is not fixed and is finalized during the onboarding process.
How Discounts and Offers Affect Your Payout
A restaurant consultant in Bengaluru explained that Magicpin’s platform is heavily driven by discounts. When my friend runs a “20% off” deal, he bears the full cost of that discount. The commission is then calculated on the remaining, discounted amount. For example, on a ₹200 order with a 20% discount, the customer pays ₹160. My friend first bears the ₹40 discount, and then Magicpin charges its 18% commission on the ₹160.
Other Deductions to Be Aware Of
In his weekly payout statement, my friend noticed two other standard deductions. First is the Payment Gateway Fee, which is a small percentage (~2%) for processing the customer’s online payment. Second is the 18% GST that is charged on the commission amount itself. These are standard industry charges that you need to factor into your menu pricing.
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