Retailers will get fixed commissions on their own sales

In a fixed-commission structure, retail store owners give salespeople a lump sum or a set percentage of a product's sales price when they make a sale. A business may set a fixed-commission structure on all products or on high-margin product lines such as luxury goods or add-on warranty plans. Retail businesses may encourage employees by offering fixed commissions during a short time window to encourage the sale of excess inventory or holiday sales.

With a commission, retail business owners pay out a percentage of their profits on the sale of a product or service to their salespeople.

They can offer employees and outside sales agents commissions to encourage them to sell products and find buyers. Because commission structures take many forms, business owners should determine the model that allows them to pay out the least amount to salespeople while providing enough compensation to motivate them.