How are Marketplace Payouts Calculated?

The Marketplace Platform has 2 types of vendor payment configurations that can be set for vendors to receive their order payments. They are Commissions and Wholesale.

Commission Vendor Payments

This is the standard implementation for payouts to vendors from the platform. In this model, the product is sold at $100, and the vendor will get the amount that the customer paid for, minus the Vendor and Category fees associated with it.

Wholesale Vendor payments

In this implementation, the vendor will always get the product cost, regardless what the mark up is by the Marketplace Owner. The Marketplace can set an extra $10, $20 or even $50 mark up from the original product, and the Marketplace will keep the mark up cost for the product.

Based on this, the payout process will automatically calculate the Vendor's Order Totals. This will be reflected in the payout invoice. The amount (including percentages and taxes) will also play a factor depending on how the system is configured.