Commission based revenue:
Gooding makes money based on the commission they receive from selected partners. On average, it’s about 5% of the consumer's online purchase, excluding VAT and shipping.
Assume the affiliated retailer is IKEA and I purchased an item worth €100. I still pay IKEA €100 for this product - no more, no less.
So, for my €100 purchase transaction, Gooding earns about €5 in commission that IKEA must pay extra. Thus IKEA netted €95 as income on this purchase.
For IKEA, it’s just like any other marketing cost. Instead of paying, say Google, €5 for an ad, IKEA pays Gooding €5 commission on above transaction for their customer referral. It’s built into their marketing budget, not an extra loss of company revenue. And it's that commission what gets split later between Gooding and my charity. So, nothing comes out of my original €100 spending.
" It's just a marketing expense for the affiliated retailer; like advertising! "
