Glossary
Merchant model
Commercial model where the intermediary (agency/platform) is the merchant of record and collects payment from the buyer, remitting to suppliers later.
Merchant flows require robust ledgers, tax calculation and chargeback handling. They enable markups and bundling but shift risk and compliance to the intermediary.
Common mistakes
What teams often get wrong
-
Is the merchant model always better for margins?
It can enable bundling and markups, but it increases operational burden and risk. Some channels or markets are better served by agency model with clear commission treatment.
Related terms
Explore connected concepts
Prefer a walkthrough?
See how the products fit together and discuss your use cases in a live demo.