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Tango

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  • 213 posts
Admin-Seller Commissions
« on: January 02, 2022, 10:51:13 PM »
Disclaimer: Another long post, but with an easy solution, I promise! ;D

Right now, the Pay Plugin offers a ton of amazing features and opportunities for an admin to monetize his Osclass install, with one of the most important ones being the Multi-Vendor Classifieds Marketplace option.

The problem here is that the admin doesn't have an easy way to get a commission from sellers, because there's no option anywhere in the interface to actually see how much the seller has sold, in a pre-defined timeframe.
To fix this, I've came up with a simple and clever solution that makes use of some of the existing Osclass capabilities.

- So basically, the admin would log in as a seller and check the total sales he had last month. In calculating the total, we take into account both Shipped and Completed orders.
- Then the admin would apply a commission of x% on that value and issue the final payment to the seller.

Now, to describe the whole logic we have:

The problems
  • Admin is missing a way to check how much a vendor has sold, in order to apply a commission on that amount.
  • For tangible products, before applying a commission you need to let the order mature. This is because of European law that gives the customer 14 days to return a product ordered online.
    So if you commission the vendor sales on the spot, and then a customer returns a product, you need to refund the customer and reverse the commission (horror story).
The fix
To solve the the above problems we need 3 simple math functions:
  • A function that calculates and outputs the total sales a vendor had in the past month (date rage 01 - 31). This should take into account both Shipped and Completed orders (many times sellers will forget to change the status of an order from Shipped to Completed, so that's why we also include the shipped ones into the calculus).
  • Another function that calculates and outputs the total YTD (Year to Date - the period of time beginning the first day of the current calendar year up to the current date) sales. This one is for the vendor, to see how much he has sold this year.
  • The third one that calculates and outputs the percentage of cancelled orders in the last month. This one is to prevent vendors from exploiting the system (like changing the order statuses to Cancelled, in order to pay lower commissions).
    So this should show a percentage of Cancelled orders in the last month, with a target set to < 3%. If the rate is higher then you can suspend the vendor account, on the suspicion of fraud.
    Here's an example from the backend of one of the biggest marketplaces in Europe - https://www.emag.ro/

Bonus fix by implementing all of the above: The 14 day order maturing part is fixed by issuing payment to sellers only once every month on the 15th. This way you give time for orders placed at the end of each month, to mature. ;)

The final workflow
  • Around the 15th of every month, the admin logs in as each vendor and checks the amount sold last month and the Order cancel rate. If everything is ok, then the payment would be issued, minus the x% that the admin keeps.
How I think it should look for us
Front:

*Maybe with some changed colors/icons - you're the design genius here.

Back:


Now, adding the above and the post in X category restriction for user groups would finally close the chapter for the Multi-Vendor Marketplace System, by giving the admin total control of the eCommerce system.
So we'll have: vendors, a commission system, the ability to create categories where only vendors can post listings and much more!

Thanks!

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MB Themes

Re: Admin-Seller Commissions
« Reply #1 on: January 03, 2022, 09:20:05 AM »
@Tango
Thanks for idea.
I think most reasonable way would be to allow sellers like "withdraw commission" but is not such simple.
Might be able to get to this in Q2 2022 so then we can discuss ;)
  To get fast support, we need following details: Detail description, URL to reproduce problem, Screenshots

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Tango

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  • 213 posts
Re: Admin-Seller Commissions
« Reply #2 on: January 04, 2022, 10:08:12 PM »
I think most reasonable way would be to allow sellers like "withdraw commission" but is not such simple.
While awesome, please note that this is a pretty deep rabbit hole... :-\

This is much harder to implement as it involves a lot of complicated subsystems like:
  • Request payment interface in both the user area and in the admin
  • Order maturing (15 days) before a withdrawal can be requested
  • Automatic disbursement system, in case you want the system to be automated (not advisable)
Here's an example from the Dokan Marketplace Demo
Settings:


Admin:


User:


What I suggested is much simpler and can be done in a few hours.
Either way, as you said this needs to be discussed further, maybe users have some other ideas regarding a good implementation.

Thanks!

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MB Themes

Re: Admin-Seller Commissions
« Reply #3 on: January 05, 2022, 08:25:21 AM »
Looks good ;)
  To get fast support, we need following details: Detail description, URL to reproduce problem, Screenshots

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Smithtech

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  • 155 posts
Re: Admin-Seller Commissions
« Reply #4 on: May 27, 2022, 09:27:20 PM »
Yes, this is a good idea. Was trying to post it but then want to read through to make sure no one has suggested admin commission already.

To clear the doubt as to whether the product has been delivered or not, buyer can also confirm that the product has been delivered, that way the commission will be shown automatically for admin to see.

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Hugo

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  • 113 posts
Re: Admin-Seller Commissions
« Reply #5 on: January 05, 2023, 08:49:12 PM »
Hi, I see there hasn't been made any progress on this super idea (receiving commissions)

Any one a great php plugin as recommendation from codecanyon for example to have a solid worldwide multi-vendor system?

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MB Themes

Re: Admin-Seller Commissions
« Reply #6 on: January 05, 2023, 09:02:57 PM »
Yes its very edge case basically just for few people you can count on hand... So there sre more important topics to work on. If you are willing to cover this, you can contact [email protected] probably can be completed for reasonable amount.
  To get fast support, we need following details: Detail description, URL to reproduce problem, Screenshots