A discount is a lower price than the usual price of a product. Vendors can provide discounts to their marketplace operators. It will be at the discretion of operators to forward this discount to the end-users or not.
Note: The discount which vendors set up does not affect the price of the product on the front-end store. Customers will purchase the product at the original price set up by the vendor or at a discounted price provided by the operator (if the operator chooses to push this discount to front end users). Vendor discount is provided to the operator by Vendor. Whilst Operator discount set up by the operator is provided to the customers by the Operator (. Vendor discount can be applied to customers if the operator chooses to set this up for front end users, but they do not have to.
A vendor can add discount in the product form (as shown below) for a specific product or can provide a global discount to the operator on all products. This option is enabled in an existing product.
How to setup a Global Vendor Discount:
1. Log in as a Vendor.
2. Under the Settings tab, Navigate to Products >> Click Show>> Click Discounts.
After clicking on Discounts, vendors will see the option of Standard discount,
A Standard discount is a discount that applies to all the existing products of the vendor.
There are two standard store-wide discount types available -
- Flat-rate ($) - a set amount charged on all orders (i.e $20).
- Percentage. (%) - set percentage of order value charged on all orders(i.e 10 %).
3. Click the Value Dropdown box and Select the Discount Value you wish to apply. (e.g. Flat-rate or Percentage)
By selecting the Flat rate you can set up the flat discount on all the existing products of the store.
- Select the option of value as a Flat rate
- Add the discount value
- Click on Save
After Clicking the Submit button, a pop-up will appear which says 'Updating global discount will affect all the existing products that are having a global discount. Do you wish to continue?'
Click on Continue and the discount will be applied to all the vendors existing products. You should be able to see a green banner that reads 'Discount Updated Successfully' (as shown below). So now, every product added by the vendor will have a discount for the operator.
How the applied vendor discount works (what vendor discount means for vendors and operators in terms of payout).
There is an existing product on the Vendor store, a Polo T-Shirt White,
The price of this product is $100, the discount which the Vendor has provided is a flat rate of $10.
Vendor Discount Setting:
Price in Marketcube:
Price Visible on the Store:
Lets Place an order for this product
,Here the operator is charging 10% as commission so the calculation is done in below way:
Product Price- $100
Vendor Discount- $10
Actual Price offered by the Vendor to the operator- $90
Commission 10% the actual price of the product offered to the operator (accounting for the vendor discount) is $90 so commission will be calculated on this amount (10% of $90= $9)
Amount the Vendor takes- 90-9= $81
Amount the Operator takes $10 (Discount offered by the vendor) + $9 (Commission) = $19
- Discounts added by vendors will not have any impact on the store frontend. These discounts are for the operator.
- Operator Discount and Vendor discounts are different. Operator Discounts are for customers and Vendor discounts are for the operator.
- Vendor discounts is provided to the operators by vendors
- Operator commission is calculated on the vendor's discounted price, not the original price reflected on the front-end store.
- This discount will have its impact at the time of vendor payout
Got more questions? Use the chat on your right or email email@example.com to get in touch..