Definition of terms
Commission: it refers to the partial amount that admin pays to sellers/vendors on each product sold.
In the tab Commissions in the plugin options panel, you can set general conditions for vendor’s commission management.
The commissions that go to the vendor can include coupons or not. Check or uncheck the option Include coupons in commission calculations to do that.
You can decide how to credit tax fees. Select one of the options available in the drop-down menu next to Taxes to credit taxes either to the admin, or the vendor or to both of them.
You can choose among:
- Credit taxes to the website admin
- Split tax by percentage between website admin and vendor
- Credit taxes to the vendor
Let’s make an example to clarify how this option work:
Suppose we have:
- product A that costs $12 ($10 product price + $2 tax);
- vendor A who gets 50% commissions on each product sold.
If you select Credit taxes to the website admin, the vendor will get 50% of the product price, that is $5. The remaining 50% and the tax fee goes to the admin, who gets $5 + $2 = $7.
If you select Split tax by percentage between website admin and vendor, the vendor gets 50% of the product price and 50% of the tax fee, that is $5 + 1 = $6.
If you select Credit taxes to the vendor, the vendor will get 50% of the product price, and $2 tax, for a total of $7. The admin will get the remaining 50% of the product price, so, $5.
Override commission percentage on vendor/product level
The commission amount is a general one and applies to all the shop vendors. Yet, you can override the general settings and specify a different commission percentage for each vendor and/or for every single product.
Commission for vendor
Commission for product
If you set both a custom commission by vendor and for a given product, the vendor commission settings will be overridden and the product commission settings will apply.