Guide For Multivendor Marketplace for Shopify: Transaction Charges on Orders

Here in the blog, we will understand how to manage transaction charges on orders placed via Multivendor Marketplace for Shopify. Before we move further, let’s understand what are handling & transaction charges.

What is Handling & Transaction Charge ?

Handling Charges are basically charge levied on a customer to cover the seller’s fulfillment costs including storing, packing, and sending an order to destination. It is charged on top of the order subtotal and shipping fees.

Transaction Charges are the charges businesses pay a service provider each time a customer payment is processed online for an order. It can vary depending on the service provider.

In most of the case, it happens that the store merchant has to bear the handling and transaction charges levied on every transaction. So, with the Sales Price feature, you can add these charges to the product price while creating the product.

So, if you enable the Display Sales Price On Product, this is how you can manage the handling and transaction charges. Check the Guide !

If the Sales Price tab is ON, the seller will bear the handling charge while the transaction charge will always bear by the admin.

However, if the Display Sales Price on Products tab is OFF, you can allow sellers to bear the transaction charge.

Let’s understand how you can manage the transaction charges separately on orders.

So, visit the Multi-vendor admin panel>>Go to Configuration>>Product Configuration and enable the Transaction Charges tab.

Now, enabling this tab, you can select whether the seller or the admin will bear the transaction charge on orders under “Transaction Charges to be paid By” dropdown.

You can enter the transaction charge either in percentage or as a fixed amount on order.

For transaction charge there will be three following cases:-
1. Seller wise
1. Product wise
2. Order wise

Let’s understand this with the help of an example.

Suppose there is Product A worth $100 USD.
Commission: 10% & Transaction charges set to 10%.

CASE 1: ADMIN: If you choose admin to bear the transaction charge. Admin earning will be $10 USD and seller’s earning will be $90 USD.

CASE 2: SELLER: If you choose the seller to bear the transaction charge. Admin earning will be $20 USD and seller’s earning will be $80 USD. Thus, the transaction charge will be deducted from the seller’s earning in an order.

Point To Be Noted:-
In case Display sale price is ON, the admin will bear the transaction charge.
In case Display sale price is OFF, transaction charge will be applied product wise and in case of active display sale price, transaction charge will be calculated seller wise.

Now, you can see these transaction charge details on Invoice, order detail page & on commission listing page.

Seller Invoice:

Order Detail Page:

Commission Listing page:

Transaction charges on Seller Panel:

So, this is how the transaction charges will be managed on orders in the Multi-vendor app.

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