How to pay payouts to vendor in a Multi Vendor Marketplace?

 A Multi Vendor Extension converts Your Ecommece website into a Multi-Vendor Marketplace website.

A multi-Vendor marketplace means where many vendors/supplies can get themselves registered on the website and start selling.

The admin generally charges a commission for this purpose. The commission may be based on the category of Products, Global commission applicable to the store, or Commission based on the seller.

In this blog, we are discussing how admin can make payments of these commission invoices to vendors.

There are generally three ways of Payments from admin to Vendor.

Offline Commission Payouts to vendor

Split Payment payouts to a vendor.

Online/Payment gateway-based payments

Payouts using an offline method

Admin can pay payout to customers using an offline method. Actually, Offline methods mean paying by cheque, Cash, or even any other mode that is not part of Multi-Vendor Extension. Admin can record that transaction in Multi-Vendor System.

So, We can say offline transaction means doing transactions outside of the Multi-Vendor system through any other mode and capturing its reference in the records.

Best Seller Opencart Multi Supplier/Seller Extension.

 
Payout Using Split Payments methods

Admin can also pay using the split payments method. In this method payment at the time of customer gets split to the seller and admin simultaneously.

The commission amount is sent to the admin and the remaining amount is sent to the vendor.

 

For example, Purpletree OpenCart Extension for  Multi Vendor offers two types of split payments.

 

Paypal Payouts split payment

Stipe Split Payment.

Payout through payment options is available in the Extension.

Multi-Vendor Marketplace extension has also a payment gateway option available to do commission invoice payments done by admin to vendors. This is when the vendor completes the orders. Generate the invoice afterward.

Then admin can do payments to the vendor through the payment option available.

For example, In Purpletree Multi Vendor Extension for Opencart, there is Paypal and Stripe payment option also available.

When does the payout is made?

Generally, Payout is made by end of a month or fortnight. First ve3ndor needs to complete his order status then the admin changes the order status.

When both the order status of vendor and admin is complete or to status is set per admin settings then the commission is calculated.

When the commission is calculated, Admin can generate the commission invoice. After the commission invoice is generated admin can pay payouts to vendors.

 

Multi Vendor Marketplace Extension for Magento 2.

 

For special purposes admin may also disable the commission features then there will be no need to deduct commissions the admin may transfer all payments received from customers to vendors in a go.

Also, if the commission is zero in any case split payment can work smoothly without affecting any functionality.