Marketplace Commissions

The commission system allows the marketplace platform to earn a percentage or fixed fee from vendor sales. Commissions can be set globally, per category, or per vendor.

Overview

When a customer purchases from a vendor:

1. Order is placed and payment is received
2. Commission is calculated based on configured rates
3. Platform fee is deducted from vendor's earnings
4. Vendor receives net amount (order total - commission)
5. Revenue is tracked for both platform and vendor

Commission Settings

Navigate to Marketplace -> Settings to configure commission rates.

Default Commission Fee

Setting	Description
Default commission fee	Percentage charged on all vendor sales (0-100%)

This is the global commission rate applied to all products unless overridden by category-specific rates.

Example:

• Default commission: 10%
• Product price: $100
• Platform commission: $10
• Vendor receives: $90

Category-Based Commissions

Enable category-specific commission rates to charge different percentages for different product categories.

1. Enable commission fee for each category - Toggle ON
2. Add category commission rules - Click "Add new fee"
3. Select categories - Choose one or more product categories
4. Set commission percentage - Enter rate for those categories

TIP

Category commissions override the default commission rate. If a product belongs to a category with a specific commission rate, that rate is used instead of the default.

Example Configuration:

Categories	Commission Rate
Electronics, Phones	15%
Fashion, Clothing	8%
Books	5%
All others	10% (default)

How it works:

• iPhone 15 (in "Phones" category) → 15% commission
• Designer Shirt (in "Fashion" category) → 8% commission
• Cookbook (in "Books" category) → 5% commission
• Kitchen Gadget (no specific category) → 10% (default)

Per-Vendor Commission Rates

WARNING

Per-vendor commission rates are not currently supported through the UI. The system uses default and category-based rates only.

Commission Calculation

Basic Calculation

Commission Amount = Product Price × Commission Percentage ÷ 100
Vendor Earning = Product Price - Commission Amount

Multi-Item Orders

For orders with multiple products:

For each product:
  - Calculate commission based on product's category
  - Sum all commissions
Total Platform Fee = Sum of all product commissions
Total Vendor Revenue = Order Total - Total Platform Fee

Example Order Calculation

Order details:

• Product A: $100 (Electronics - 15% commission)
• Product B: $50 (Fashion - 8% commission)
• Product C: $30 (Books - 5% commission)

Commission breakdown:

• Product A commission: $100 × 15% = $15
• Product B commission: $50 × 8% = $4
• Product C commission: $30 × 5% = $1.50

Totals:

• Order total: $180
• Platform commission: $20.50
• Vendor receives: $159.50

Revenue Tracking

Admin Revenue Reports

Navigate to Marketplace -> Revenues

The revenue table shows:

Column	Description
Customer	Vendor name
Order ID	Related order number
Sub Amount	Order subtotal before commission
Fee	Platform commission amount
Amount	Net amount credited to vendor
Current Balance	Vendor balance after transaction
Currency	Transaction currency
Type	Revenue type (order commission, adjustment, etc.)
Description	Transaction notes
User	Admin who created the record (if manual)
Created At	Transaction date

Viewing Vendor Revenues

Filter by vendor:

1. Go to Marketplace -> Revenues
2. Use the customer filter to view specific vendor's revenue
3. Export to CSV for reporting

Vendor Revenue Dashboard

Vendors view their earnings at: Vendor Dashboard -> Revenues

Vendors see:

• Total revenue earned
• Commission fees paid
• Net earnings
• Current withdrawable balance
• Revenue history by order

Manual Revenue Adjustments

Admins can manually create revenue records for:

• Refunds
• Credits
• Corrections
• Bonuses

WARNING

Manual revenue adjustments should be used carefully as they directly affect vendor balances and signature verification.

Commission on Different Order Types

Regular Orders

Standard commission calculation applies.

Partial Refunds

When an order is partially refunded:

• Commission is recalculated based on remaining order value
• Vendor balance is adjusted accordingly
• Revenue record is updated or new adjustment created

Full Refunds

When an order is fully refunded:

• Commission is reversed
• Vendor balance is credited back
• Revenue record reflects the reversal

Shipping Fees

Shipping fee commission depends on marketplace settings:

• Charge shipping per vendor = OFF: Platform handles shipping, no commission on shipping
• Charge shipping per vendor = ON: Shipping fee goes to vendor, commission may apply based on configuration

Revenue Reports

Platform Revenue Summary

Track total marketplace earnings:

1. Navigate to Marketplace -> Revenues
2. View total fees collected from all vendors
3. Filter by date range for period reports
4. Export data for accounting purposes

Key Metrics:

• Total commissions earned
• Revenue by vendor
• Revenue by product category
• Average commission rate
• Top earning products/vendors

Vendor Performance Reports

Identify top-performing vendors:

1. Go to Marketplace -> Stores
2. Sort by total revenue or total orders
3. Analyze commission revenue per vendor

Commission Storage & Security

Signature Verification

The system includes signature verification to prevent unauthorized balance manipulation:

Setting	Description
Check valid signature	Verify signature on vendor balance changes (recommended: ON)

TIP

Keep "Check valid signature" enabled in production to prevent fraud and data tampering.

The signature is a hash of:

• Vendor balance
• Total fees paid
• Total revenue earned
• Customer ID

If signature verification fails, transactions are rejected.

Troubleshooting

Commission Not Being Calculated

1. Check default commission fee is set (not 0%)
2. Verify store is published and verified
3. Check order is marked as "finished"
4. Review revenue records for the order

Wrong Commission Rate Applied

1. Verify category commission settings
2. Check product category assignment
3. Ensure category-based commissions are enabled
4. Review order items and their categories

Vendor Balance Incorrect

1. Check all revenue records for that vendor
2. Verify no manual adjustments were made
3. Review withdrawal records
4. Check for refunded orders
5. Verify signature is valid (Settings -> Check valid signature)

Signature Verification Error

Error: "Invalid signature"

Cause: Vendor balance, fees, or revenue were modified directly in database

Solution:

1. Temporarily disable "Check valid signature" in settings
2. Review and correct vendor balance
3. Re-enable signature verification
4. Future changes will generate new signatures

WARNING

Never edit mp_vendor_info table directly. Always use admin panel or proper API methods to avoid signature mismatches.

Best Practices

1. Set competitive commission rates - Research industry standards (typically 5-20%)
2. Use category commissions strategically - Lower rates for high-volume categories
3. Monitor commission revenue - Ensure platform sustainability
4. Keep signature verification ON - Prevents fraud and data corruption
5. Regular audits - Reconcile revenue records with actual payouts
6. Clear communication - Inform vendors of commission rates before registration
7. Document rate changes - Keep records when updating commission percentages
8. Test calculations - Verify commission math with test orders before launch

Frequently Asked Questions

Can I charge a flat fee instead of percentage?

Currently, the system supports percentage-based commissions only. Fixed fees per order are not supported.

Can I set different rates for different vendors?

Not through the UI. All vendors follow the default commission rate unless overridden by category-specific rates.

Do shipping fees have commission?

Depends on "Charge shipping per vendor" setting. Generally, shipping fees are passed to vendors without commission.

What happens when a product is in multiple categories?

The system uses the first matching category commission rate found. Ensure your category commission rules don't overlap, or structure them hierarchically.

Can vendors see commission rates?

Vendors can see the fee deducted from each order in their revenue dashboard, but commission percentages are not directly displayed. Consider communicating rates during vendor onboarding.