1. Marketcube Support
  2. Quick guide for Operators
  3. Payments (Commission, Taxes & Vendor Payouts)

How to set up your marketplace commission rate?

Setting up commission ensures that you and your vendors always get paid the correct amounts. This article explains commission types available and how to configure them.

Commission rate is the amount you, the marketplace operator, get paid for each sale in your marketplace. For instance, if you were to sell an item for $10 and your commission rate was set to 20%, then you would earn $2 and your vendor would earn $8. 

Within Marketcube there are a number of options available for setting up commission, which broadly fall under two categories:

  • Standard (Global) Commission: ability to set store-wide commission rate that will apply to all marketplace orders.
  • Advanced Commission: ability to set different commission rates by price range, vendor, category, or a combination of both vendor & category. 

To access commission setup you need to head to Settings, accessible from your Dashboard.

You will be prompted to set up your standard commission the first time you launch Marketcube. Don't worry about setting it up incorrectly the first time you launch Marketcube. You can always change it later in Settings. 

Standard Commission: Global Store-Wide Commission 

Standard commission is a global setting that will be applied to all sales in your platform, against all orders. You can set the commission amount to be a percentage value of an order's value, e.g. 20%  or a flat rate/fixed fee per item in the order e.g. $1.50, regardless of the order total value.

For example, if you sell an item for $10 and your commission is set to 20%, then you will make $2 on sale and your vendor will make $8. However, if your commission is set to $5 and you sell an item for $10, then you will make $5 and your vendor will make $5. 

Advanced Commission: by Price Range, Vendor, Category, or a Combination of Vendor & Category

Within Advanced Commission you can configure separate commission settings based on a number of key criteria:

  • by price range (e.g. for products within $0-$100 range charge 10%, for products within $100-$1000 range charge 5%),
  • by vendor (e.g. for Zara products charge 10%, for H&M products charge 15%),  
  • by product category (e.g. for Electronics charge 12%, for Cars charge $500),
  • by a combination of both product category and vendor (ie for Zara Jeans charge 7%).  

Similarly to Standard (Global) Commission, Advanced Commission can either be a fixed amount (e.g. $5) or a percentage (e.g. 10%).

Please note to set Advanced Commission you must first have vendors and categories created in your marketplace, else either one or both of the options will be unavailable.

Set Priority

If you set up more than one commission type you need to indicate which one should take priority in situations where an order satisfies the criteria for two or or more commission types.
For instance, if your Dresses category commission is 20% and your vendor-specific commission is 15%, then which one should take precedence when an order is placed for this vendor's dress? If it is 20%, then choose "Commission by Product Type"; if it is 15% then choose "Commission by Vendor."