IRP plans to move to GMV in Q3 to Match Industry Standards
IRP plans to base Transaction Fees on GMV by Q3. The reason for this move is so that IRP’s charging model matches Industry Standards.
IRP is currently calculating Transaction Fees based on Transaction Models that have excluded Returns. The plan is to factor in returns and work out Merchants EXACT GMV equivalent - and to use this new equivalent GMV% rate for billing.
So there will be NO CHANGE to the AMOUNT a Merchant will Pay - new LOWER GMV% rates will be calculated to exactly match the existing Amount Invoiced.
There will be NO CHANGE in the Amount Billed
What is Gross Merchandise Value (GMV)?
GMV stands for Gross Merchandise Value. It represents the total monetary value of all transactions on a platform over a specific period. This GMV metric is the industry standard for eCommerce.
The new GMV Percentages are LOWER than Current Rates
Why is IRP moving to GMV if there is no change to actual Amount Charged?
New and Existing Merchants have asked us for GMV pricing - and we think it is a good time to make the change. The change will put IRP onto the same charging Model as other eCommerce platforms using GMV based Fee pricing.
Our current Charging Model makes the IRP Transaction Fee look more expensive than it is when compared to other platforms - changing it to GMV shows we are in fact BETTER VALUE.
The GMV% will be a lower percentage to account for returns - so that the end amount charged is exactly the SAME.
Merchants will pay the EXACT SAME INVOICE AMOUNT as before
An Example of GMV versus Current
The GMV invoice value will work out EXACTLY the same as Merchant’s existing Invoice value. The GMV% will ALWAYS be less than the existing Fee%.
If you are a clothes retailer on a 3.50% IRP Transaction Fee and have a high returns rate of 30% - your GMV rate will NOW be billed at a much lower equivalent GMV of 2.45% Fee.
The GMV rate will depend on the Merchants returns rate (and whether they have VAT and Shipping included in their existing rate).
When will the Change to GMV happen?
It will be a process of calculating the individual Merchant GMV% equivalent to their existing rates. It is a paper exercise with no risk or rush and it will take a little time to do and be completed in Q3 2025.
Conclusion
This will be an ongoing process - your overall Fee will remain exactly the SAME. Your GMV% rate will be LOWER than your existing rate. IRP has to make this change so that IRP rates match the eCommerce Platform market. It is the way the industry charges - so this makes IRP rates fairly comparable.
In summary - it's just the equivalent rate as GMV% - it means NO CHANGE to your invoice value - and more to come on this over the coming months.
