Order Commission refers to the remuneration paid by the seller or buyer to an intermediary, agent, or broker for facilitating a specific order, usually calculated as a certain percentage of the order amount. Usage scenarios include: obtaining orders through commission agents, existing customers referring new customers, or fees charged by cross-border e-commerce platforms based on transaction value. Precautions: The commission rate must be clearly stated in the contract to avoid confusion with discounts; commission is usually calculated based on FOB or CIF net price, not the price including commission; payment is generally made after receiving full payment to prevent commission loss due to customer refusal to pay. The difference from 'Turnover Commission' is that order commission applies only to a single order, while turnover commission is based on total sales over a certain period. Unlike a 'Rebate', commission is legal remuneration, while a rebate may involve commercial bribery. Additionally, commission may need to be listed separately on the invoice for financial handling by both parties.
📝 Examples
1. The agency agreement signed between our party and your party stipulates that the order commission for each order is 3% of the invoice amount, payable within 15 days after receipt of payment. (Note: Clarifies commission rate and payment conditions)
2. Since intermediary A successfully introduced a large order from Company B, our party agrees to pay an order commission of USD 5,000 for that order. (Note: Demonstrates that commission is generated and paid for a specific order)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
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