Vendor fees, commissions & royalties in MultiMerch

MultiMerch multi vendor marketplace makes it possible to create a flexible fee & commission setup in your marketplace through the use of vendor groups. This section describes the general idea behind commissions, various commission types in MultiMerch and how they can be used for different purposes in your store.

 

Seller groups

Fees and vendor groups

Fees and commissions are defined in MultiMerch using vendor groups. This makes it possible to define different fees on 3 different levels – default vendor group for all vendors in the store, vendor's specific vendor group and commission settings for a particular vendor.

For more information on how settings from different groups are applied and inherited, check MultiMerch Vendor Groups. The same system applies to fee rate settings – if a fee rate field is left empty, it gets inherited from a higher level.

Fixed and dynamic fee rates

MultiMerch supports fixed and dynamic price-based fee rates for listing and sale fees. Fixed fee will make the system charge a fixed amount on product listing or sale while a dynamic rate will charge a percentage of the price the product was listed or sold at.

Signup fees only support fixed rates.

Fee types in MultiMerch

There are 3 types of vendor fees in MultiMerch multi vendor marketplace, each serving a different purpose.

Vendor Signup Fee

Signup fee allows the store owner to define the cost of signing up in store. The fee is collected from the vendor once during registration. There are two possible means of paying the signup fee – vendor balance and PayPal. The former will deduct the amount from the vendor's initial balance (making him start with a negative balance) while the latter will redirect the vendor to PayPal on signup and will enable the vendor account once the payment is cleared.

Product Listing Fee

Listing fee is collected from the vendor once for each product listing. The same payment means can be used for listing fee payment as for the signup fees – using vendor balance will deduct the amount from the vendor's current balance while PayPal will redirect the vendor to PayPal and enable the product once it's cleared.

Sale Fee

The sale fee is deducted from the order total when the order is completed. There are two means of paying the sale fee. The most common method is vendor balance – this deducts the fee from the vendor's balance when the order is cleared automatically. The other method is to use Adaptive Payments for MultiMerch – in this case, the fee is paid directly to the store owner at checkout.

Examples

Here are three different examples of fee values getting inherited from the default group, from the vendor's specific group or from particular vendor's settings.

Example 1 (vendor is in “another” group) :
Default group commission: 0.30 + 5%
“Another” group commission: 0.50 + 10%
Vendor commission: 1.00 + 15%
Final vendor commission = 1.00 + 15% per sale

Example 2 (vendor is in “another” group) :
Default group commission: 0.30 + 5%
“Another” group commission: 0.50 + 10%
Vendor commission: (empty) + 15%
Final vendor commission = 0.50 + 15% per sale

Example 3 (vendor is in “another” group) :
Default group commission: 0.30 + 5%
“Another” group commission: 0.50 + (empty)
Vendor commission: (empty) + (empty)
Final vendor commission = 0.50 + 5% per sale