Many shops see a flood of orders from delivery apps and the sales look great — but at month-end the money just isn’t there. The main culprit is the “GP fee” the platform quietly takes on every order. This post explains what a GP fee is, how much it takes, and what price to set in the app so you keep the same profit as selling in-store.
What is a GP fee?
GP stands for Gross Profit, but in the delivery world it means the commission the platform deducts from your sales on each order — the fee a shop pays the app for bringing in the customer and the rider.
In Thailand, food-delivery GP fees are typically around 30–35% per order (before VAT), depending on the platform, shop type, and package you signed up for. Shops that don’t join the app’s promotions may get a lower rate. Always check each app’s contract/dashboard, because the real number varies.
How much profit is actually left? (worked example)
Say a menu item costs ฿40 and you price it at ฿100:
- In-store: ฿100 − ฿40 cost = ฿60 profit
- Via app (30% GP): app takes ฿30, ฿70 reaches you − ฿40 cost = only ฿30 profit
Same price, but half the profit gone! That’s why shops are “busy on the app but not richer.” (More: Why your best-seller might be losing money)
Formula: in-app price to keep the same profit
Don’t copy your in-store price straight into the app. Add a buffer for the GP fee with this formula:
In-app price = price you want ÷ (1 − GP%)
For example, to net the same ฿100 as in-store, with a 30% GP (0.30):
฿100 ÷ (1 − 0.30) = ฿100 ÷ 0.70 = about ฿143
So you’d set roughly ฿143 in the app to keep ฿100 reaching your shop. (This is why most shops price higher in-app than in-store — it’s normal and customers understand.)
4 traps that cause losses on delivery
- Paying for “free delivery” yourself — a “free shipping” promo the shop absorbs eats directly into per-order profit.
- Joining platform promos without doing the math — a “50% off” the app invites you to can mean the shop covers half.
- Delivery packaging / giveaways — boxes, bags, cutlery, sauces are hidden costs in-store doesn’t have. (Read: Hidden costs that shrink your profit)
- Using the same price as in-store — forgetting the GP buffer means working harder for nothing.
Should you raise prices in the app?
Usually yes — delivery customers are already paying for convenience, and pricing 15–40% above in-store is common. The key is knowing each item’s real per-unit profit first, so you price accurately instead of guessing. (See: How to price products for profit)
How to check: know your real profit per order
A tool like Posless stores each item’s price and cost, so logging a sale tells you the profit per order instantly, and shows total profit by day/week/month. That way you know what each item really earns after cost, so you can set your in-app price (with the GP buffer built in) accurately instead of guessing. Tip: record the amount you actually receive after the GP fee as the delivery order’s sale price, and the profit you see will better match reality.
Frequently asked questions
Q: How are GP and VAT calculated together? A: Platforms often add 7% VAT on top of the GP fee, e.g. 30% GP + VAT ≈ 32% deducted. Read the app’s payout statement carefully.
Q: Is pricing higher in-app than in-store against the rules? A: Generally it’s allowed and normal, but check each platform’s terms, as some have policies on price differences.
Q: Is it worth it for a small shop to join delivery apps? A: Yes, if you price to cover the GP fee and control hidden costs. Treat it as a channel for new customers — but always know your real profit per order, not just total sales.
Summary: A GP fee is the commission delivery apps take on every order — around 30–35% — making per-order profit far lower than in-store. The fix is to set in-app prices with price ÷ (1 − GP%), watch out for free-delivery and promos you absorb, and track profit by channel, so selling on apps leaves real profit, not just nice-looking sales.