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An extensive feature WCMp boasts off- Vendor Commission/ Admin Fees lets you earn while paying the vendor his/her due amount. With this feature, you can have a control on what gets paid, when and how.
Configuration Settings (By the Administrator)
Following are the main set of settings that have been briefly jotted below and about which we shall discuss later in this article.
- Revenue sharing (Vendor commission or Admin fees).
- Payment calculation (Fixed amount and/or percentage amount).
- Disbursal (Automatic disbursal or Withdrawal by request).
For quicker overview on Vendor Commissions and Payments, take a look at the tutorial video below.
If you don’t like the video or need more instructions, then keep on reading.
All these settings can be configured from Payment Settings under Payment tab of WCMp Settings or if you’ve run the WCMp Setup Wizard, you might have as well configured it while moving through the Commission Setup / Payments steps.
Revenue sharing mode – Vendor Commission Vs Admin Fees
Vendor Commission is what you, the site admin, pay the vendor. Admin Fees is what you, the site admin, charge on every product sold. For example, a Product A has been set to cost $100 which belongs to Vendor X and a Product B has a price of $200 belonging to Vendor Y, both these products have been ordered by a customer, normally the product prices would straightly go to the vendors selling it but with Vendor Commissions/ Admin fees you can charge an amount from your vendors while leaving the rest for them. Say, you’ve set a fixed amount of $5 that will get deducted for every product ordered, in that case, you’ll get a fees of $10 ($5 for each product), while Vendor X gets $95 and Vendor Y gets $195.
You can choose any one of the above as your revenue sharing structure on your site.
Examples of Admin Fees
- You charge a fixed sum of $5(per unit) plus 10% of the transaction value from each sale and pay rest to the vendor.
- You charge a fixed sum of $5 (per transaction) plus 10% of the transaction value and pay rest to the vendor.
- You charge a fixed sum of $5(per unit) and pay rest to the vendor.
- You charge 10% of the transaction value as your admin fees.
Examples of Vendor Commission
- You pay the vendor 75% of the transaction value.
- You pay the vendor $22 per unit sold.
- You pay the vendor $22(per unit sold) plus 75% of the transaction value.
- You pay the vendor $22 per transaction plus 75% of the transaction value.
Reference 1: Revenue sharing mode – Vendor Commission Vs Admin Fees
What to Pay (Payment calculation)
Irrespective of what revenue sharing mode you select, WCMp will calculate payments in the methods discussed below.
- Fixed amount per product – Product A is priced at $200 and Commission value in case of Admin Fees is set to $5, customer orders 4 Product A. You will receive a fees of $20 [ 4 x $5 ] while vendor receives the rest $780
- Percentage on the total transaction/sale value – Product A is priced at $200 and Commission value in case of Admin Fees is set to 5%, customer orders 4 Product A. You will receive a fees of $40 [ (200*4) * 5/100 ] while vendor receives the rest $760.
- Percentage of the transaction/sale value + a fixed amount per transaction – Product A is priced at $200 and Commission percentage in case of Admin Fees is set to 5% and a Fixed amount of $10 has been set, customer orders 4 Product A. You will receive a fees of $50 [ ( (200*4) * 5/100 ) + 10 ] while vendor receives the rest $750.
- Percentage of the transaction/sale value + a fixed amount per unit – Product A is priced at $200 and Commission percentage in case of Admin Fees is set to 5% and a Fixed amount of $10 has been set, customer orders 4 Product A. You will receive a fees of $80 [ ( (200*4) * 5/100 ) + (10*4) ] while vendor receives the rest $720.
Reference 2: What to Pay (Payment calculation)
Note: These calculations are applicable for both revenue sharing mode i.e. Vendor Commissions and Admin Fees.
Share Coupon Discount
You may choose to share the “cost” of a coupon with the vendor, or shoulder it all by yourself. To share the cost of a coupon, mark the field checked. For example, Vendor X has set the price of Product A to $100 and admin provides the vendor, a commission of 70% and a lucky coupon gives a discount of 20%.
In case Share Coupon Discount is unchecked: you have chosen NOT to share the cost of the coupon, the vendor will then receive $70, and you will get $10, as the $20 discount will be deducted from your share (Customer pays 100-20% i.e $80. Vendor receives 70% of 100 i.e. $70, you receive 30-20 i.e 10$).
In case Share Coupon Discount is checked: you have chosen to share the cost of the coupon, the corresponding calculation will be as follows: Customer pays $80 after deducting the discount, the vendor will get 70% of $80, that is $56 and you get the rest $24.
If you choose to mark this as checked then, the tax collected from the customer will be entirely passed onto the vendor along with his payable commission.
If you choose to uncheck then, the tax collected from the customer will stay with you and will not be passed onto the vendor.
This is similar to the Tax checkbox.
If you choose to mark this as checked then, the shipping charges collected from the customer will be entirely passed onto the vendor along with his payable commission.
If you choose to uncheck then, the shipping charges collected from the customer will stay with you and will not be passed onto the vendor.
Enter a monetary amount here, if required. This field is a check on when the vendor can request the admin to disburse his commission. In simpler terms, the minimum amount required after which the vendor can request to withdraw his commission.
If the amount is not satisfied by totaling his commissions, the Request Withdrawal button doesn’t appear.
Withdrawal Locking Period
Enter a number in days. This field is a check on the minimum number of days required, after an order is completed for the commission to be ready for disbursal.
If the number of days is not satisfied by any of the commissions earned, the Request Withdrawal button doesn’t appear.
Reference 3: What to Pay (Payment calculation)
How to Pay (Disbursal)
Allowed Payment Methods
Select your preferred payment methods to disburse payments and commissions to your vendors. Vendor can however, select their preferred payment mode to receive commissions from the methods you have allowed.
Payment Gateway Charge
Mark this checked, if you wish to deduct the gateway charges from your vendor’s commissions’ itself. If you prefer to keep it unchecked, then you will have to solely bear the gateway charges.
Gateway Charge Type
Select either Percentage/ Fixed Amount from the dropdown and set the percent/ amount in the respective boxes. Say, a vendor is about to receive a commission of $100 and the gateway charge to be deducted is 5%, now he/ she will receive a commission of $95 instead.
If this field remains unchecked, admin will have to pay the vendors their commission manually everytime. If this field is enabled, the commission gets automatically disbursed and a new set of fields are opened asking you to Set Schedule for the disbursal period.
Note: There is NO automatic payment for “bank transfer”.
Enabling this field adds a “Request Withdrawals” button in the Vendor Dashboard, using which the vendor will be able to request the admin to disburse their payments. If the selected payment method by the vendor is bank transfer, the withdrawal request shows up in the Admin’s To-Do List while if it is PayPal or similar, the commission gets disbursed instantly.
Enter a monetary amount here in order to charge the vendor for every withdrawal he/ she requests for. The entered amount gets deducted from the commission he is about to receive. Leave it blank, to do it free of cost.
Number of Free Withdrawals
This field entitles the vendor with a limited number of free withdrawals which he/ she can request for, exceeding which they are charged for every withdrawal they request for with the amount you have entered in the Withdrawal Charges section.
Lastly, make sure, you’ve saved your changes.
Reference 4: How to Pay (Disbursal)
Enabling Payment Methods
To have a proper functioning PayPal MassPay running on your site that helps disburse vendor’s payments, go to the PayPal Masspay tab under Payments and enter the API Username, Password, and Signature obtained from PayPal. For more details read this document. To do a quick test payment before going live using PayPal sandbox check the box for Enable Test Mode.
Reference 5: Enabling Payment Methods
To have a proper functioning PayPal Payout running on your site that helps disburse vendor’s payments, go to the PayPal Payout tab under Payments and enter the Client ID and Secret obtained from PayPal. For new PayPal accounts, it is mandatory as per PayPal guidelines, to have asynchronous mode enabled as the synchronous mode is deprecated, while for older accounts both synchronous and asynchronous modes are available and hence, we’ve left it up to you to decide.
In a brief perspective: In Synchronous mode, PayPal would immediately pay the vendor without checking for any payment related risk factors and return the payout status instantly while for Asynchronous mode PayPal checks for all the risk factors involved and then proceeds with the payment later sending you the payout status. Also, in Synchronous mode, Paypal handles one payout at a time while Asynchronous mode handles multiple individual payouts in one API call.
For more details read this document. To do a quick test payment before going live using PayPal sandbox check the box for Enable Test Mode.
Reference 6: Enabling Payment Methods
You can view all the vendor commissions that have been generated after an order is complete under WCMp Commissions. Here you can see commissions along with vendor names who’ve earned it, the product(s) which was ordered for, the total payment earned and the current status of it. Adding to it, you can filter your commissions by their statuses. Click on a commission to view its details or update it.
On viewing an individual commission, you shall see a breakdown of the commission that the vendor has earned, commission notes (stating transaction details: mode/error/status as is the case) and other important commission details.
Reference 7: Vendor Commissions
For manual payments, after payments have been transferred you can update your payment statuses by checking the box for Mark as Paid.
When an order is refunded/ canceled after being completed and the vendor’s commission is due, then the commission status automatically changes to reverse. You can, however, manually mark it reversed if a such or similar case arises and the system fails to recognize it. Once reversed, you cannot change the commission status (for obvious reasons)
Setup your Store Payment Settings (By the Vendor)
In order to receive commissions earned after a successful order completion, you will need to have properly configured payment settings. No worries, it is as easy as pie!
- First, go to Billing under Store Settings and select your preferred Payment Method and add the form fields as is necessary for each payment method. You are now ready to receive all your payments!
Reference 8: Setup your Store Payment Settings (By the Vendor)
- To see all your Unpaid Commissions and request for your disbursal of commissions, go to Withdrawals under Payment. You can request your disbursal by clicking on the Request Withdrawal button iff your commission value is above the Disbursement Threshold amount and the day you are requesting your commission has exceeded the Withdrawal Locking Period set by the admin.
Reference 9: Setup your Store Payment Settings (By the Vendor)
This page can be seen if the Admin has Withdrawal Request checked under How/When to Pay in WCMp Payment Settings.
- To see your previous commission transactions, click on History under Payments. Here, you can download a CSV file of the transactions, as well as sort by date range and view your payments. Reference 10: Setup your Store Payment Settings (By the Vendor)