Clarify definition of “Commission”

  • Resolved yomela

    (@yomela)


    5 years ago

    Hi there,

    I am about to start working with “WC Vendors Marketplace” and would be happy about one wording clarification.

    When you talk about commissions within your plugin settings, then you talk about the money my vendors get OR the money I get as the owner of the marketplace.

    Thanks a lot for clarifying.

    Best regards

    Ariadne

Viewing 4 replies - 1 through 4 (of 4 total)
  • Jamie Madden

    (@digitalchild)

    Hello,

    The commission is the split of the sale between the marketplace (you) and the vendors. You pay out the commissions to the vendors with the remaining assigned to your earnings.

    cheers,

    Jamie.

    Thread Starter yomela

    (@yomela)

    Hi Jamie,

    thank you very much for your immediate answer.

    So, if I set the global commission rate at settings/commissions/ for ex. to 93%, then the vendor gets 93% of the earning and I do keep the remaining 7% of the earning, correct?

    Sorry for asking again but as english is not my mother tongue I just want to be 100% sure.

    Best regards

    Ariadne

    Jamie Madden

    (@digitalchild)

    Hello,

    Not a problem at all. You are correct. Setting 93% means the vendors get 93% however I would not recommend setting your earnings so low. It would be very difficult to sustain a business on less than 4% of sales. Unless of course, your marketplace has extremely high ticket prices.

    Most people starting marketplaces do not take into account the operating costs related to your marketplace. Your payment gateway fees alone will take 2-4% of the total order value leaving you with a mere 3% to pay for hosting, staff, development, marketing and more.

    We recently launched our Marketplaces 101 series to help educate new and existing marketplace owners. We have been covering various aspects related to starting and maintaining your marketplace. You can read through them available here – https://www.wcvendors.com/cat/marketplaces-101/

    Any further questions, be sure to let us know.

    cheers,

    Jamie.

    Thread Starter yomela

    (@yomela)

    Hi Jamie,

    thank you so much ?? You are definitely right, I still have to re-think my commission calculation. Thank you very much for telling me about your Marketplaces 101 series. This sounds very interesting and useful! I will definitely read through it.

    Thank you so much! Have an nice day and may be “read” you next time when I might have another question. I really appreciate your kind and immediate support.

    Best regards
    Ariadne

Viewing 4 replies - 1 through 4 (of 4 total)
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