X-Cart:Provider commissions

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X-Cart 4.4or above
X-CartPro

Many owners of multi-vendor stores based on X-Cart PRO would like to charge their providers a certain fee for using the store site to sell their products. Whereas this model of building a business on X-Cart PRO is by all means possible, it is worth noting that X-Cart PRO does not provide any facility for handling payments between the providers and the store owner. When a product is sold through a store based on X-Cart PRO, the money from the sale goes to the merchant account of the store owner, whereas any further payments - including the transfer of earnings from the sale from the store owner to the provider and the transfer of the fee for using the store site from the provider to the store owner - must be taken care of outside X-Cart.

However, if you charge your providers a fee for using the store site as a percentage from each sale of their products through your store (the same percent for all provider accounts), X-Cart can help you to calculate how much you owe to each of your providers from each sale after the deduction of the fee they owe you. It also allows you to keep a record of payments you make to your providers so that at any moment you can check which payments have already been made and which are yet to be made. Your providers can also see their income from each sale and find out the status of the respective payent in their personal provider backends.


Enabling the calculation of payments to providers

To enable X-Cart to calculate the amount due for payment to each of your providers, you need to set your Providers commission rate (%) and Minimum commission payment values. These values are set globally by adjusting the respective settings on the General settings page (Settings menu -> General settings) in your store's Admin area:

Provider comissions1.gif

The Providers commission rate (%) setting defines the percentage of the order subtotal that a provider will earn by selling products through your store. For example, if you need to give 95% of the order subtotal back to the provider as their earnings, withholding 5% of the subtotal for allowing the provider to sell through the store site, you should set this value to 95.

The Minimum commission payment setting defines the minimum amount a provider must earn at their account before they can get paid.

Viewing and managing information about payments to providers

In Admin area, information about payments to providers can be found on the Provider commissions page (Orders menu -> Provider commissions). This page provides a search form that allows you to search and filter provider commission records.

To view provider commissions statistics:

  1. Select Orders->Provider commissions on the main menu. This opens the Provider commissions page:
    Provider comissions.gif
  2. Specify the desired search criteria and then click Search.

This brings up a list of providers along with the commission payment details for each provider.