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User Guide for Commission Overview ​

Commission Overview – Shopify Multivendor Marketplace App ​

Multivendor Marketplace for Shopify offers a robust commission management system, allowing store owners to earn from every sale made by their sellers.

In a marketplace model, commissions are the core of the revenue structure for the admin. They represent the amount earned by the marketplace owner from each transaction made by vendors.

What is a Commission? ​

A commission is the percentage or fixed fee that the admin (store owner) earns from a seller's product sale. It can be configured in multiple ways based on your business model:

  • Global Commission
  • Seller-wise Commission
  • Product-wise Commission
  • Category/Collection-wise Commission
  • Variant-wise Commission

Example:
If Seller X lists Product A for $100 and the admin sets a 10% commission, then:

  • Admin earns $10
  • Seller receives $90

The app follows this commission priority hierarchy:
Global Commission < Seller-wise < Category-wise < Product-wise

Global Commission ​

  • Applied to all sellers, products, and collections.
  • Set from the Global Commission Settings tab in the app.
  • Supports both percentage-based and fixed-value commission.

Example:

If commission is set to 10% + $20, and the total order is $1400:

  • Seller A’s sale: $500 → Admin gets $70 → Seller earns $430
  • Seller B’s sale: $900 → Admin gets $110 → Seller earns $790

Seller-wise Commission ​

You can override the global settings for specific sellers from the Seller Commission Settings page in the app.

Seller Commission Settings

Product-wise Commission ​

Enable product-wise commission from the app’s configuration settings.
Navigate to Products > Product Listing > Edit Product and set the desired commission.

Note: Disable “Display Sales Price on Products” from the configuration to use this.

Category (Collection)-wise Commission ​

To enable this:

  1. Activate “Restrict Collection” from the configuration.
  2. Go to Products > Collections and click Sync.
  3. Set the commission via the Collection Commission Settings page.

Variant-wise Commission ​

Commission can be applied at the variant level by navigating to: Products > Product Listing > Edit Product > Edit Variant

Set the commission on individual variants as needed.

Seller Panel – Commission Listing ​

Sellers can view commissions for each order from:
Seller Panel > Orders > Commission Listing

Seller Commission View

Monthly Sales-Based Commission (Slab-Wise Commission) ​

The Monthly Sales-Based Commission feature allows the admin to configure a dynamic commission structure where the commission percentage automatically changes based on the seller’s total sales within a defined monthly cycle.

This commission structure is applied globally to all sellers and resets automatically at the end of each monthly cycle.

1. Enable Slab-Wise Commission ​

  1. Go to Admin Panel → Commission → Global Commission Settings.
  2. Locate the Commission Type section.
  3. Select the option “Sales/Slab-Wise Commission”.
  4. Click Save.

Enable Monthly Sales Commission

Once enabled, the admin can define commission slabs based on monthly total sales.

2. Define Commission Slabs ​

The admin can define up to 10 commission rules (slabs).

For each slab, configure the following:

  • Minimum Sales Amount
  • Maximum Sales Amount
  • Commission Percentage

Set Commission Slabs

Example Commission Structure ​

Total Monthly Sales (USD)Commission (%)
0 – 1,00030%
1,001 – 2,00020%
Above 2,00010%

Click Add More Range to create additional rules (maximum 10 slabs).

Save the configuration after defining all slabs.

How Commission Is Calculated ​

During the defined monthly cycle, the commission is calculated based on the seller’s total accumulated sales for that month at the time of each order.

Example Scenario ​

First Order: USD 500

  • Total Sales = USD 500
  • Commission Applied = 30%

Second Order: USD 600

  • Total Sales = USD 1,100
  • Commission Applied = 20%

Third Order: USD 500

  • Total Sales = USD 1,600
  • Commission Applied = 20%

Once total sales exceed USD 2,000, the commission will automatically change to 10% for subsequent orders.

This process continues until the monthly cycle ends, after which the calculation resets automatically.

Seller Panel Visibility ​

Sellers can view the following details:

  • Commission deducted per order
  • Total commission deducted
  • Order-wise commission details

This information is available in:

Seller Panel → Orders → Commission Listing

As the seller’s total earnings increase during the cycle, the commission percentage will automatically adjust according to the defined slab structure.

Important Notes ​

  • A maximum of 10 commission slabs can be configured.
  • The commission structure is applied globally to all sellers.
  • It is not possible to define separate slab structures for individual sellers.
  • The commission cycle automatically resets after the defined period.

This feature enables marketplace owners to incentivize higher seller performance by offering reduced commission rates as sales volume increases.

Learn More ​

Read the full guide on Commission Types

Demo ​

Explore a live demo of the Multivendor Marketplace:
https://egsma.io/shopify-multivendor-marketplace/