- Commission system upgrade notice
- Store order based
- Advanced commission rule example
- Per item based
- Another per item example (quantity case)
- Quick difference summary
- Shipping and tax distribution
- Tax distribution options
- Charge tax on shipping cost
- Fees deducted from store earnings
- Platform fees [PRO]
- Facilitator fees [PRO]
- Gateway fees
Commission system upgrade notice #
If your marketplace was created using an earlier version of MultiVendorX, it may still be using the older vendor-specific commission system.
In this mode, the Marketplace commission and Commission value settings behave exactly as they did in the previous version. This ensures your existing commission rules keep working without affecting current store earnings.
What this means :
Your marketplace is temporarily operating in compatibility mode, preserving the older commission behavior until you update it.
When the new commission system activates
The moment you save any change on this settings page, MultiVendorX automatically switches your marketplace to the new commission model.
After this switch:
- commissions are calculated using the new system
- marketplace commission settings control the calculation logic
- the older vendor-specific behavior will no longer apply
- the notice automatically disappears
Recommendation :
If your marketplace is already processing orders, review your commission configuration carefully before making changes.
The Commission settings panel in MultiVendorX controls how the marketplace earns from store sales and how revenue is distributed between the marketplace and stores.
Whenever a customer places an order, the platform calculates how much of the order total belongs to the marketplace and how much should be paid to the store. These calculations are based on the rules configured in this section.
This panel allows the admin to define:
- how commission is calculated
- how tax and shipping affect commission
- what additional platform or gateway fees apply
- how these fees are distributed
Configuring these settings properly ensures transparent revenue sharing, accurate payouts, and a consistent financial structure across the marketplace.
Store order based #
Commission is calculated based on the total order value of each store order.
When a customer buys products from multiple stores, WooCommerce splits the purchase into separate store orders, and the commission is calculated once per store order.
Example
A customer places one order with products from two different stores.
| Store | Products Purchased | Store Order Total |
|---|---|---|
| Store A | 1 Product | $50 |
| Store B | 2 Products | $30 |
Commission rule: 10%
Commission calculation:
- Store A commission → 10% of $50 = $5
- Store B commission → 10% of $30 = $3
Marketplace earns: $8 total commission
Each store receives its earnings after commission deduction.
Why this is useful
- Best for marketplaces where commission should apply to the entire store order
- Useful when stores sell bundles, services, or mixed products
Advanced commission rule example #
Advanced commission rules allow the marketplace to apply different commission rates based on defined conditions instead of using only the default commission.
These rules are useful when the marketplace wants to adjust commission based on product price, quantity, or specific products.
Example – Price based advanced rule
Rule configuration
- Default commission: 10%
- If product price is above $100 → commission becomes 15%
Customer order
| Product | Price | Quantity |
|---|---|---|
| Product A | $80 | 1 |
| Product B | $150 | 1 |
Order total: $230
Commission calculation
Product A
- Price: $80
- Falls under default rule
- Commission → 10% of $80 = $8
Product B
- Price: $150
- Matches advanced rule (> $100)
- Commission → 15% of $150 = $22.50
Final result
- Marketplace earns: $30.50 commission
- Store receives: $199.50
Per item based #
Commission is calculated for each product in the order individually.
The commission rule is applied to every item or listing purchased, instead of the full store order total.
Example
A customer buys 3 products from the same store.
| Product | Price | Quantity |
|---|---|---|
| Product A | $20 | 1 |
| Product B | $30 | 1 |
| Product C | $50 | 1 |
Commission rule: 10%
Commission calculation:
- Product A → 10% of $20 = $2
- Product B → 10% of $30 = $3
- Product C → 10% of $50 = $5
Marketplace earns: $10 commission
Store receives the remaining $90.
Another per item example (quantity case) #
A customer buys 5 units of the same product.
| Product | Price | Quantity |
|---|---|---|
| Product A | $20 | 5 |
Commission rule: 10%
Commission calculation:
- Commission per item → 10% of $20 = $2
- Total commission → $2 × 5 = $10
Marketplace earns $10 commission.
Quick difference summary #
| Mode | Commission calculated on |
|---|---|
| Store order based | Entire store order total |
| Per item based | Each individual product |
Shipping and tax distribution #
This setting controls how shipping costs and taxes are treated during commission calculations.
Since shipping and taxes are part of the checkout total, the marketplace must decide whether these values affect commission or store earnings.
Tax distribution options #
This setting determines who receives the tax collected from customers.
A. Marketplace share : The marketplace receives the tax amount along with its commission. Example :
- Order value: ₹1000
- Tax collected: ₹100
Marketplace receives:
- commission
- ₹100 tax
Store receives the remaining earnings.
Why this setting matters
- Useful when the marketplace handles tax reporting
B. Store share
The tax amount goes directly to the store owner.
Example
- Order value: ₹1000
- Tax collected: ₹100
Store receives:
- product earnings
- ₹100 tax
Marketplace receives only its commission.
Why this setting matters
Suitable when stores manage their own taxes
C. Commission based tax
Tax is calculated only on the commission amount, not on the full order value.
Example
- Order value: ₹1000
- Marketplace commission: ₹100
Tax is applied only on ₹100
Why this setting matters
Useful in regions where marketplaces pay tax only on commission earnings
Commission based tax
Tax is calculated only on the commission amount, not on the full order value.
Example
- Order value: ₹1000
- Marketplace commission: ₹100
Tax is applied only on ₹100
Why this setting matters
- Useful in regions where marketplaces pay tax only on commission earnings
Charge tax on shipping cost #
This option controls whether shipping charges are taxable.
When enabled : Shipping charges will be included in tax calculations.
Example
- Product price: ₹1000
- Shipping: ₹100
- Tax: 10%
Tax is calculated on ₹1100
Total tax: ₹110
When disabled
Shipping charges remain tax free.
Example
- Product price: ₹1000
- Shipping: ₹100
- Tax: 10%
Tax applies only to ₹1000
Total tax: ₹100
Fees deducted from store earnings #
This setting allows the marketplace to configure additional operational fees. These fees help cover marketplace operations, payment processing, or third-party services.
Platform fees [PRO] #
Platform fees are extra charges collected by the marketplace beyond the normal commission.
You can configure:
- fixed fee
- percentage fee
- combination of both
Added to customer order total
The platform fee is added during checkout, and the customer pays it.
Example
- Product price: ₹1000
- Platform fee: ₹20
Customer pays: ₹1020
Marketplace earns commission + ₹20 platform fee
Deducted from store earnings
The platform fee is deducted from the store payout.
Example
- Product price: ₹1000
- Marketplace commission: ₹100
- Platform fee: ₹20
Marketplace receives: ₹120
Store receives: ₹880
Facilitator fees [PRO] #
Facilitator fees are earnings shared with a third-party partner involved in marketplace operations.
A facilitator could be:
- marketplace manager
- regional distributor
- vendor onboarding partner
Fees can be configured as:
- fixed amount
- percentage
Example
- Order value: ₹1000
- Marketplace commission: ₹100
- Facilitator fee: 10%
Facilitator receives: ₹10
Marketplace keeps: ₹90
Gateway fees #
Gateway fees represent transaction charges applied by payment providers such as Stripe, PayPal, or Cash on Delivery.
Admins can configure:
- a default gateway fee
- separate fees for specific payment methods
Example configuration
- Default gateway fee: 2%
- Cash on Delivery fee: ₹30
Example order
- Order value: ₹1000
- Payment method: Cash on Delivery
Gateway fee applied: ₹30
This fee is usually deducted from store earnings.
