Remittance for orders is calculated automatically in Marketplacer every night.
Remittance is calculated as follows.
Order Value LESS Total Merchant Fees LESS Commission = Remittance
If you have selected the option to include shipping in remittance, then this is added. No commission is taken from postage and merchant fees.
Calculation details
Here's an example showing the breakdown of each component of the equation.
Key terms and example details
MFF - Merchant fee (fixed) - $0.50
MFP - Merchant fee (percentage) - 1% (0.01)
TMF - Total Merchant Fee
OV - Order Value - $100
IP - Item Price - $90
S - Shipping - $10
CR - Commission Rate - 10% (0.1)
TC - Total Commission
Total Merchant Fee
It is not mandatory to charge merchant fees to sellers. If you do, it can be set as a percentage calculated on the order value, or as a fixed merchant fee applied to each individual invoice.
Merchant fees are calculated on the total order (including postage). They are set platform-wide and have both a fixed fee as well as a percentage element.
(OV x MFP) + MFF = TMF
(100*0.01) + 0.50 = 1.50
TMF - Total Merchant Fee = $1.50
Total commission
Commissions can be defined at a category, seller or platform level. See Setting up commissions.
All commissions include GST.
IP * CR = TC
90 * 0.1 = 9
TC - Total Commission = $9.00
Remittance
Using the Total Commission (TC) and the Total Merchant Fee (TMF) we can calculate the remittance:
OV - TC - TMF = R
100 - 9 - 1.5 = 89.5
The total remittance (R) that will be paid to the seller is $89.50, leaving the operator with $10.50 of that order as commissions and merchant fees.
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