Where Does Your Online Sale Actually Go?
When a customer places an online order, the amount they pay is not what lands in your bank account. The platform first takes its commission, then GST on that commission, a payment gateway fee, and whatever discount you funded on the order. What remains is your payout. From that payout, you still have to cover your ad spend and the actual cost of making the food — only then do you know your real profit.
Most restaurant owners look only at their payout and assume that's their profit. It isn't. Payout minus ads minus food cost is your true profit on that order — and that number is often far thinner than owners expect.
Breaking Down Each Deduction
Commission (typically 20%–30%)
The platform's cut for bringing you the order, listing you on the app, and handling delivery logistics.
GST on Commission (18%)
A statutory tax charged on the commission amount only — not on your full order value.
Payment Gateway Charges (~2%)
The fee for processing the customer's online payment.
Discount
Any promotional discount you chose to fund to make your listing more attractive.
Ads / Marketing Spend
Money spent on sponsored placement to get more visibility and orders.
Food Making Cost
Raw material and preparation cost — what it actually costs you to make the dish.
How to Improve Your Online Order Profitability
- ►Reserve deep discounts for slow hours — you don't need to discount as heavily during peak demand.
- ►Track whether ad spend actually drives incremental orders, not just visibility. Cut what doesn't convert.
- ►Negotiate a lower commission slab once your order volume gives you leverage with the platform.
- ►Control food cost through portion discipline, reduced wastage, and better supplier rates.
- ►Push customers toward direct ordering channels where possible — every commission-free order improves your margin.