Marketplaces fees in MultiMerch

MultiMerch is designed to help you generate revenues while running your online marketplace.

This guide covers the MultiMerch fee configuration in detail.

MultiMerch fees – the basics

MultiMerch supports three types of fees you can collect from your sellers: sign up fee, product listing fee and selling fees.

Sign up fees

Sign up fees are one time fees collected by your marketplace from sellers signing up to sell products in your marketplace.

MultiMerch currently supports two ways of collecting sign up fees – via direct payments and from seller balances.

In case of direct payments, MultiMerch will create an invoice for the seller to pay after signing up before they can start selling products.

If seller balance payments are used, sellers will start with a negative seller balance after signing up, but won't have to make a direct payment.

A sign up fee is always a flat amount.

Product listing fees

Product listing (or publishing) fees are collected from sellers as they start listing their products.

Just like with sign up fees, listing fees can be collected via direct payments or from seller's balance.

However, unlike sign up fees, listing fees may consist of a flat amount and a percentage of product's listing price.

In addition to this, MultiMerch lets you define different listing fees for individual sellers or specific product categories.

Selling fees

Selling (or sale) fees are collected by the marketplace at the time of sale and are calculated for each product sold.

If your marketplace uses the aggregated payment flow (default), selling fees are withheld by the marketplace at the time of payout to the seller.

If PayPal Adaptive is used, selling fee is automatically withheld from customer's payment and transferred to the PayPal account of the marketplace owner.

Like listing fees, selling fees can consist of a flat amount and a percentage of product's price and can be specified on a seller group, seller, category or product level.

 

Configuring fees in MultiMerch

Fee priority

If you plan to use both seller level and product level fees in MultiMerch, you'll need to specify, which one is more important if both are configured.

You can do this using the Fee priority setting in Admin > MultiMerch > Settings > Miscellaneous.

The value of this setting will tell MultiMerch which fee rate to use if you've specified different listing or selling fee rates both for an individual seller and for one of their products.

Seller group fees

In most cases, you'll start your fee configuration with seller group fees.

This lets you apply specific fee rates for all sellers belonging to a particular seller group.

Since by default all sellers belong to the default seller group, you can specify a set of fees for the default seller group to apply them to all sellers in your marketplace.

You can do this via the Admin > MultiMerch > Marketplace > Seller groups > Edit page.

Here, you can specify the sign up, listing and selling fee rates and their application way – either from seller balance or direct (via payment gateways).

After you're done, you'll see the actual fee rates in the list of seller groups.

The default seller group has to have all fields filled out, but you can leave some fields blank for secondary seller groups – in this case, they will inherit the values from the default group.

Seller fees

If you want a more granular fee configuration, you can configure individual selling and listing fee rates for invidual sellers via Admin > MultiMerch > Sellers > Edit > Commissions & fees.

This screen works in a similar manner – leaving a field blank will tell MultiMerch that the value of this fee rate has to be inherited from seller's group.

Category fees

MultiMerch will let you specify individual selling and listing fee rates for different categories on the Edit category page.

Here, leaving the field blank will inherit the value from the parent category.

Category fees are where the "fee priority" setting comes into play.

If you have different sale and listing fee rates defined both for an individual category and for a seller listing/selling products in this category, MultiMerch will apply the fee rate based on the "fee priority" setting.

Product fees

The same rule applies to individual product fees which can be configured via the Edit product page.

You can specify different selling fees both for individual products and for sellers selling these products, but MultiMerch will use the rate based on the "fee priority" setting.

 

How fees are collected

Sign up fees

Depending on your "collection method" setting, MultiMerch will either collect sign up fees from seller balances or create invoices for direct payments at sign up.

When a sign up fee is enabled, sellers will see a relevent notification when creating their seller accounts.

If MultiMerch is configured to use seller balance for fee collection, your sellers will start with a negative balance if sign up fees are enabled.

As they begin selling, new orders will get their seller balance into positive numbers, at which point the seller will be able to receive payouts.

If you have direct fee collection enabled, MultiMerch will instead create a pending invoice for the seller to make a payment to your marketplace before their account is activated.

Once the invoice is paid by the seller, their account will be activated automatically.

Listing fees

Listing fee collection works in a similar manner to sign up fees.

As your seller is creating a new product listing, MultiMerch displays a notification about the listing fee, which can be a flat amount or depend on the price of the product

After the product is created, MultiMerch will either deduct the fee from seller's balance and activate the product automatically or keep the product inactive until the listing fee is paid by the seller manually.

Sellers can always see the status of each of their products in the Products page in their seller accounts.

Selling fees

Selling fees are collected by MultiMerch in two different ways depending on the payment flow used in the marketplace.

For aggregated payment flows (default), MultiMerch will deduct selling fees when creating seller transactions.

When you're ready to make a payout, the final payout amount will have the fees already withheld.

If you're using the parallel payment flow via PayPal Adaptive, MultiMerch will split customer's order payment into two different parts:

  • seller earnings (one payment per seller)
  • marketplace fees (one payment)

Thus, you will instantly receive the selling fee amount to your PayPal account once the customer completes the payment.