How to set up your marketplace commission rate?

We are often asked by our customers when signing up, how commission works on our website.

In this article, we will discuss about commission and explain how to set it up.

In Marketcube, Commission is the amount the Marketplace operator charges their vendors for selling their products on their store.

Setting up commission ensures that you and your vendors always get paid the correct amounts. This article explains the different commission types available and how to configure them.

Commission rate is the amount you, the marketplace operator, get paid for each sale in your marketplace. For instance, if the vendor has set up the price of the product as $10 and the commission rate set up by you is 20%, then you would earn $2 and your vendor would earn $8.

Within Martizer there are numerous options available for setting up the commission, which broadly falls under three categories:

• Standard (Global) Commission: ability to set store-wide commission rate which is by default applicable to all orders on the marketplace.
• Advanced Commission: ability to set different commission rates for vendors, category, or a combination of both vendor & category.
• Commission by Price range: the ability to set different commissions for different price ranges e.g. $100-$500 or $500-$1000.

To access commission setup you need to head to Settings inside your Dashboard.

You will be prompted to set up your standard commission the first time you launch Marketcube. Don't worry about setting if setup up incorrectly the first time you launch Marketcube. You can always change it later from Settings.

Standard Commission: Global Store-Wide Commission

Standard commission is a global setting that will be applied to all the sales in your platform, against all orders. You can set the commission amount to be:

a) A percentage value of an order's value, e.g. 20%.

or

b) A flat rate per item in the order e.g. $1.50, regardless of the order total value.

For example, if you sell an item for $10 and your commission is set to 20%, then you will make $2 on sale and your vendor will make $8. However, if your commission is set to $5 and you sell an item for $10, then you will make $5 and your vendor will make $5.

Advanced Commission: For Vendor, Category, or a Combination of Vendor & Category

Within Advanced Commission you can configure different commission settings based on a number of key categories:

• For vendors (e.g. for one charge 20%, for others charge 15%),  
• For product category (e.g. for Shirts charge $10, for other clothing items charge $50),
• For a combination of both product category (Shirt) and vendor ( a particular vendor) charges 5%

Similar to the Standard (Global) Commission, Advanced Commission can either be a fixed amount (e.g. $5) or a percentage (e.g. 10%).

Note: To set Advanced Commission you must first have vendors and categories created in your marketplace, else either one or both of the options will be unavailable.

Commission by Price range

Within the option of commission by price range, you can set customized commission for products that come under different price ranges. For example, For the price range of products within the $0-$100 range you can charge 10%, and for products within the $101-$200 range you can charge 5%.

Note: Price ranges must be successive with no gaps between price ranges.

Similar to the Standard (Global) and Advance Commission, Price range commission can also be set as a fixed amount (e.g. $5) or a percentage (e.g. 10%).

Set Priority

If you set up more than one commission type then you need to indicate which one should take priority in situations where an order satisfies the criteria for two or more commission types.

For instance, if your Shirt category commission is 10% and your vendor-specific commission is 20%, then which one should take precedence when an order is placed for this vendor's dress?

If you set it up as "Product Type" then 10% commission will be charged, if you have set it up as "Vendor" then 20% commission will be charged and if you set it up as "Commission by price range" then 10% or 5% based on the price range will be charged.

Got more questions? Use the chat on your right or email at support@marketcube-io to get in touch.

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