Free Commission on Multi-Vendor Marketplace

[frank_mittelman]

Hi There,

I'm new on Magento and I'm trying to find out is there any feature on Magento where I can skip the commission part on admin side. 

Seller/Vendor sell an item to buyer, buyer pay directly to seller. Maybe the seller can set their own payment. Admin don't get any commission.  Maybe admin can deactivate the commission function and seller/vendor handle it in oldschool manner like craigslist. 

Why?

It's just for growing a fast community and later handle the commission rates. I'm on conservative niche segment, which is very sensible regarding commissions.

Thanks for any advice and tips!

Frank-

[Robert Rand]

Hi Frank,

Off the shelf, Magento is an eCommerce platform (you list your goods, sell your goods, get paid for your goods).

It is not natively a multivendor marketplace. That means that it does not have core features to split payments between buyers and sellers, split orders between sellers, etc.

To run a marketplace, you'd need a multi-vendor / multi-seller extension. You can find one in the Magento Marketplace: https://marketplace.magento.com/

I wouldn't expect there to be much of an issue with setting your commissions at 0%, but you'll probably want the extension features to allow your sellers to manage their own product listings, order fulfillment, etc. If you have questions about a particular extension, you should be able to reach out to the extension developers for advice.

Best of luck!

[frank_mittelman]

Hi Robert,

thank you very much for your fast reply. 

I know there are a few multi-vendor marketplace extensions out there like webkul, apptha and more.I thought, maybe there is another user which had the same issues in the past and maybe have a tip for me how to handle it. The extensions have a lot of features but they all have in common that the admin get their commission. If I charge zero commission, the payment needs to be released from admin. The admin will get always the payment and release it to the seller.

the main issue is, if you have zero commission and using a payment gateway, you will be charged from the payment provider. This point I would like to leave this point to the seller, if they can directly handle his payment options. 

thanks-

[Robert Rand]

I can't vouch for any one specific extension for your specific use case, but some seem to suggest that they will pay out the sellers automatically, like: 

CreativeMinds:

https://marketplace.magento.com/cminds-module-marketplace.html

Webkul (addon):

https://marketplace.magento.com/webkul-marketplace-paypal-adaptive-payment.html

I see what you're saying about the gateway fees. I don't know if these extensions have logic to handle a $0.00 scenario. It may take a bit of customization, or it might not, but I'd imagine it wouldn't be too difficult to address programmatically. You could always reach out to the extension developers to get their feedback. 

Keep in mind that with payment gateways like PayPal for Marketplaces (in Beta), your payments can be automatically split and 100% of the PayPal fees are deducted from the seller... it's different than the old fashioned method of having the marketplace receive payment, and then pass a portion on to the sellers (ie. after deducting commissions and fees). I've seen this in use with other platforms, but haven't specifically seen it leveraged with a Magento store (yet), although I'd be surprised if someone wasn't using it.

[saurabhsin4ea5]

Hi @frank_mittelman 

To run a marketplace, you'd need a multi-vendor / multi-seller extension. You can find Webkul Magento 2 Marketplace Multivendor Module

You can check the module functionality and workflow from here.

Regarding Payment gateway, You can check Webkul Magento 2 Multi-Vendor PayPal Commerce module

You can also get back to us from here.

Hope it helps!

if issue solved, Click Kudos & Accept it as Solution.