DoorDash operates as a technology platform connecting consumers with local merchants for on-demand delivery and pickup services. A DoorDash merchant is an independent business that formally partners with the platform to facilitate sales and logistics. This partnership allows the merchant to access DoorDash’s large customer base and utilize its network of delivery drivers, known as Dashers. The platform provides a marketplace and fulfillment mechanism, enabling merchants to expand their sales channels beyond their physical location.
Defining the DoorDash Merchant
A DoorDash merchant is an independent entity that uses the platform as a third-party channel to sell goods to consumers. The merchant remains the seller of the product, while DoorDash provides the technology to list items and manage delivery logistics. Although the platform initially focused primarily on restaurants, the merchant base has significantly expanded in recent years.
The current network includes various business types, such as convenience stores, grocery chains, flower shops, and pet supply retailers. This diversification allows merchants across different industries to tap into the demand for on-demand delivery services. By integrating with DoorDash, these businesses gain visibility to millions of customers who use the app to search for local goods and services. The platform functions as a digital storefront and logistical partner, extending the merchant’s operational reach.
Operational Models and Partnership Types
Merchants can partner with DoorDash through distinct operational models, each defining the level of service and logistical support they receive. The most common arrangement is the DoorDash Marketplace, where the merchant is listed directly on the DoorDash app and website. This full-service partnership handles both customer acquisition and end-to-end logistics, dispatching a Dasher for the delivery.
Another model is DoorDash Drive, which provides a logistics solution for orders placed through the merchant’s own ordering channels, such as their website or proprietary app. The merchant maintains the direct customer relationship and uses DoorDash only to dispatch a Dasher for the final-mile delivery. This allows a business to offer a branded delivery service without managing its own fleet of drivers.
Merchants also have access to commission-free options like Storefront, a customizable online ordering system embedded directly into a business’s website. Orders placed through Storefront can utilize Dashers for delivery, or the merchant can use their own staff for fulfillment, known as Self-Delivery. Each model offers flexibility, allowing merchants to choose a partnership that aligns with their existing customer interaction and delivery capabilities.
The Merchant Onboarding Process
Becoming an approved DoorDash merchant begins with submitting an application through the company’s dedicated sign-up portal or contacting the sales team. The business must provide necessary documentation, including legal business details, tax IDs, and banking information for proper payment processing. This initial phase establishes the merchant’s profile and verifies their operational readiness.
Following acceptance, the onboarding process moves into the technical and logistical setup. The merchant selects a method for receiving orders, such as a dedicated DoorDash tablet, an existing Point of Sale (POS) system integration, or a simple email/phone notification system. The business must then upload and configure its menu, ensuring all item descriptions, pricing, and availability are accurate for the online marketplace. Once the contract is finalized, the merchant completes a training or activation phase, preparing them to go live and begin accepting customer orders.
Understanding the Financial Structure and Fees
The financial relationship between a merchant and DoorDash is structured around variable commission rates, determined by the chosen partnership model and service level. For the full-service Marketplace model, commissions are assessed as a percentage of the order subtotal. The rate varies based on the marketing and visibility tier the merchant selects. Plans that offer greater customer reach, such as inclusion in the DashPass program, carry a higher commission percentage.
Beyond the commission on sales, a merchant may incur several other fees for optional services. Merchants who use the dedicated DoorDash tablet for order management are subject to a weekly rental fee after any initial trial period. Payment processing fees are also applied to orders placed through commission-free channels, like Storefront, since the merchant is responsible for the financial transaction. DoorDash offers merchants the option to receive payouts weekly via direct deposit or to opt for daily payouts at no additional cost.
Managing the Merchant Account and Day-to-Day Operations
Once a business is live on the platform, daily operations are managed through the Merchant Portal and the order-receiving interface, such as the tablet or POS system. The order fulfillment workflow begins when an order is received, prompting the merchant to confirm and begin preparation. The interface allows staff to track the order status, communicate with the assigned Dasher, and mark the order as ready for pickup.
The Merchant Portal functions as the command center for the business partnership, offering tools for account management and performance tracking. Merchants use the portal to update menus in real-time, adjust store hours, and manage item availability by marking products as temporarily out of stock. The portal provides access to detailed financial statements, sales analytics, and customer feedback data, enabling the business to monitor key metrics like order accuracy, wait times, and customer ratings.