1. Home
  2. Knowledge Base
  3. WC Vendors
  4. Marketplace Features
  5. Settings
  6. How Commissions Work in WC Vendor Pro?
  1. Home
  2. Knowledge Base
  3. WC Vendors
  4. How Commissions Work in WC Vendor Pro?

How Commissions Work in WC Vendor Pro?

WC Vendors provides a flexible and complete commission system with a robust set of options depending on your marketplace needs. It includes the ability to set commissions at various levels and to use a wide array of commission types.

WC Vendors commissions are the commissions given to the vendor, not the marketplace. This means the values that you enter are what you will be assigned to the vendor, not the marketplace. For example: inputting 70% in the commission field means the vendor will receive 70%.

Settings

To configure the commission settings, there are various locations depending on the commission level you are setting. The commission settings will be explained in reverse order. Usually, you will set a commission rate globally and then only override the commission for a particular product, category, or vendor when necessary.

Please Note

Commission fields support whole numbers. Decimal numbers, currency signs, or percentage symbols are not supported. For example, you can enter 55 for 55%. You cannot enter 55.8 for 55.8% this is not supported.  Do not enter $5.00.  Instead, simply enter 5.

Global Settings

The marketplace’s global, default commission settings are available on the Commissions tab in WC Vendors Settings.

From the WordPress admin, you will navigate to WC Vendors > Settings > Commission.

WC Vendors Marketplace

WC Vendors Marketplace provides percentage-based commissions only across the entire product. The following screen is how you would configure the marketplace to provide a 50/50 split between the vendor and the marketplace globally.

WC Vendors Marketplace commission settings.

WC Vendors Pro

Once you activate WC Vendors Pro you will have two other options available on the commission’s screens.

Global Commission Type

WC Vendors Pro provides various commission types which are explained below. All commission types are available at the global level.

Coupon Action

WC Vendors Pro includes a coupon module for vendors.  Vendors can create coupons that apply to their products only.  You have a setting for Coupon Action that will determine whether the vendor coupons are applied Before a commission is calculated or After the commission is calculated.

  • After – The vendor’s commission will refer to the total price after the coupon
  • Before – The vendor’s commission will refer to the total price before any coupon

Admin/Marketplace Coupons

When the admin or marketplace creates a coupon it’ll follow your coupon action(Before or After).

If you’ve set it to before, you the marketplace will essentially shoulder the coupon as you are giving the vendor full commission. Thus, the marketplaces commission will be based of the remaining $ after paying the vendor’s commission.

If set to after, the marketplace and vendor will share the burden of the coupon. It is shared because the commissions are calculated after the discount is applied. Thus, the marketplaces commission will be based of the final price

The math behind the coupon/commission action logic, assuming that

  • Product Price = 100
  • Commission = 90
  • Coupon discount amount = 1

Before = Commission calculated before coupon, customer payment = 99, vendor commission = 90 (90% of 100), marketplace commission = 9 (99-90). This essentially means marketplace shouldered the commission

After = Commission calculated after coupon, customer payment =99, vendor commission = 89.1 (90% of 99), marketplace commission = 9.9 (99-89.1). This essentially means the marketplace and vendor shares the commission

Vendor Commissions

The marketplace admin is given the option to adjust commission on a per-vendor basis if needed.  If you wish for a particular vendor to have a different commission rate than you have set as globally, then you can adjust the commission type and rate for a vendor.

Admin can do this by visiting WordPress Admin > Users > All users > Find a vendor to edit.

WC Vendors Marketplace

WC Vendors Pro

WC Vendors Pro provides a new commission section in the user edit screen. You can scroll down to the Commission section

You will be given the option via a drop-down box to choose the commission type, and then the commission rate for this vendor. 

Category Commission

Category Commission allows you to set the commission on a per-product category basis. This feature is only available in WC Vendors Pro. There is a requirement for this commission level. To use product category commissions you must have enabled single category selection on the product forms.

WC Vendors > Settings > Forms > Products

Category Display – single select

  • If this setting is not configured then category commission settings will not be displayed.
  • If a product has more than one category then the category commission settings will be ignored.

Once this has been set category commissions will be activated. You can now then set the category commission on the new category screen or edit the category screen. You will be able to use the standard commission types listed below.

Tiered commissions are not available at this level.

Product Commission

Product commissions are set at the per-product level. This is the first commission level that is checked when commissions are calculated. These are set on the product edit screen in the WordPress Admin Area.

WordPress Admin > Products – Product Edit – Commission tab.

The standard commission types outlined below are available at this level as well as the Product price tiered commission.

Commission Types

WC Vendors provides one of the most flexible commission systems on the market today. This ensures you can create a commission model that works for your business model.  Each type is explained more below:

These commission types are available at all levels

  • Product
  • Category
  • Vendor
  • Global

Standard Commission Types

  • Percentage (default): This is the site default commission rate for all vendors.  Using whole numbers only, enter the percent of each product sale you wish your vendors to receive.  For example: if you would like your vendors to receive 50% of each product sale, then you would enter 50 in the box.  The vendor will receive 50% commission, and the site admin will receive 50% commission for each product sold.
  • Percentage + fee:  gives the vendor the percentage minus the fee.  The admin receives the remaining commission plus the fee.   For example: 50% and 5 fee. Enter 50 in the percentage box, and 5 in the fee box.  When a $100 product is sold, the vendor would receive $45 (50% of $100 minus $5 fee) and the admin would receive $55.
  • Fixed: A fixed currency amount of commission that a vendor will receive for each product sale. Enter the number for the fixed commission amount. For Example, you would like your vendors to receive $5 of each product sale. Enter 5 in the field.  Vendors will receive $5 for each product sold; admin will receive the remaining amount from the product sale.
  • Fixed + Fee: A fixed currency amount of commission that a vendor will receive for each product sale, minus the fee. For example, you would like your vendors to receive $5 of each product sale, and for admin to receive a fixed $1.  Enter 5 in the fixed field and 1 in the fee field.  Vendors will receive $4 ($5 minus the $1 fee) for each product sold; admin will receive the $1 fee plus the remaining amount form the product sale.

Tiered Commission Types

Tiered commission types provide much greater flexibility than our standard commission types above. This allows you to reward your vendors based on either sales performance or the product price.

  • Sales By Vendor
  • Sales by Product
  • Product Price

Tiered commissions are available at the following levels

  • Global (all tiers)
  • Vendor (all tiers)
  • Product (product price only)
  • Sales by Vendor: This tiered system will allow you to set different commission rates based on the total sales for a vendor. This allows you to create commission systems found in the larger marketplaces currently online.
  • Sales by product: This allows you to create a tiered commission system based on the total sales of a product. So that you can reward vendors based on the popularity of their specific products.
  • Product Price: Product Pricing tiers allow you to set different commission rates based on the price of a single product. This is not for total product prices in the cart but per product.

Was this article helpful?

Related Articles

Complete Your Purchase