How to calculate and manage commission on excel? Which formulae should I apply? How can I view commission received by admin or seller? Really difficult to track for e-commerce businesses and finding a best solution for it, is important. Calculating commission of each product sell and maintaining its record is one of the hectic and tedious activity that every online business has to do. 

Commission is a payment that can be made to an employee for his service or to a seller based on the terms and conditions of buying something through the seller. There are various kinds of commission models used in businesses, and they’re seen in both online and in physical storefronts.

Let’s have a quick look at Magento multi vendor extension offered by Purpletree Softwares for commission calculation module, which helps to set, view and calculate the commission in a simple and reliable way.

  • After a successful installation of magento multi vendor marketplace extension, we need to configure by loging-in via admin panel to calculate and receive the commission.
  • Enter the commission for admin of seller product for category of product to be sold. By default value is set to 10.

commission menu

Seller Commission

In this seller page, we can view the commission receivable by admin for each completed order for this particular Seller.

 commission management

How can an Admin view commissions

Through admin panel, admin can view commissions of all the orders of sellers.


commission list

Add/Set Commission

This can be done by admin only who can assign the category of commission applicable to the products in a category.

  1. Add commission percent for each product sold by a seller.
  2. Expand the tree and click the radio buttons to select the category.
  3. Save commission.

Edit Commission

If the commission is to be edited, just click the plus sign of the tree and check the selected categories.

category setup

How and at when Commission would be calculated

Commission can be calculated after the completion of the order. The admin will get the commission automatically after the completion of invoice and shipment of any order. There are three criteria for the calculation of commission.

  1. Commission based on category basis: Here the commission is based on the all the products of a category.
  2. Commission based on seller: Here the commission is based on the number of products sold by a seller.
  3. Commission on global basis: This is applicable on all products mentioned in the website.

The commission is checked first on category basis, then on seller basis and then on global. It means that the commission on the category basis is checked first but if that product is available in more than one category, then maximum value of the commission is selected. If category commission is not properly defined, then the commission is paid according to seller commission. If that too is not defined, then global basis commission is considered.

Commission list will be updated only after the completion of an order.

Registration of a seller

 seller signup

If anybody wants to become a seller, then he has to create a customer id and then he has to select a checkbox to become a seller. After that, the person has to enter a URL for his store. Then the user has to click Create the Account. An Ajax call will check the uniqueness of the URL and then the account will be created.

Purpletree Software LLP

The organization has a team of ecommerce developers who develop user-friendly software applications for their customers. The vision of the organization is to become expert in developing quality software applications for their customers. The team of the company has diverse background and this help to develop software very easily.

Purpletree’s magneto multi vendor extension makes commission calculation easier, faster and better.

More details of Multivendor Marketplace for Magento 2 can be found here.