Introducing Combine Commission Rate on DOKAN- The Top Marketplace Builder Plugin on WordPress

Since 2015, Dokan, the top multi-vendor marketplace in WordPress, has been successfully providing services to its customers.

Now, Dokan is gradually becoming stronger with every new update. The latest update brings you a new feature in Dokan Commission.

In the latest version 2.9.14, Dokan commission got a new type called ‘Combine Commission‘.

The write-up below will give you an insight into the new commission type and how this new commission type will help you to get the best out of Dokan.

Importance & Usability of Commission in a Marketplace

Dokan Commission

All business-persons want to earn money from their respective businesses. Therefore, a commission sharing system can be a great way to earn revenue and profit from any kind of business. Almost every multivendor site is using the commission to earn their profits and revenue.

With a limited investment, reasonable profit can be earned because of commission.

With a smart commission rate planning, more sellers will be attracted to your marketplace. When your marketplace gets the desired boost, then the commission rate can be increased. Dokan provides these solutions with smart commission rates.

Types of DOKAN Commissions both for Admins & Vendors

There are 3 types of commission rates on Dokan. You can use any of the commission rates to earn your revenue.

Earn with dokan plugin

1. Percentage Commission

With the percentage rate, you can add a commission percentage globally, vendor wise, product-wise, and category wise. If you add a percentage globally, that means you will get that percentage on all your vendors.

If you set it based on vendor, product or category, you will get that percentage specifically for that product, vendor or that category.

Suppose you have set a 10% commission rate, then you will get a $10 commission on every $100 sale.

2. Flat Commission

Flat rate means you will earn your commission in currency form. You can also add a flat rate to all the four commission systems (global, vendor, product, category).

So, if you set a $10 flat rate, you will earn $10 for any amount of sale.

Like, if the sale is $100 or $1000, you will get $10 flat from that sale.

3. Combined Commission (New Feature)

In the new version 2.9.14 of Dokan, we have introduced this new type in commission rates.

With the combined rate commission, you can add both percentage and flat rate commission at the same time.

After selecting the combined type, you have set the percentage rate at 10%, and flat commission at $15. So if the sale is $250, you will get a commission of ($25+$15)=$40.

Combine Commission rate on Dokan

You can also use this commission rate in every commission system.

How to Set up Dokan Commission

We have added multiple ways to earn money from Dokan. An admin or site owner can set commission for all the orders, products, store or product categories.

Go to Dokan→Settings→Selling Options. There you will find all three commission types. Select any one of the commission types, then set the rate and you are good to go.

There are 3 types of Commission.

  1. Percentage type
  2. Flat type
  3. Combine type
Commission types on Dokan

Read the documentation to know how to set up the Dokan Commission.

You can set up different commission rates for different commission systems like Global Commission, Store Base Commission, Product base commission, Category base commission.

Give your knowledge a boost about the commission system with this article.

What Would You Get Using Combined Commission Rate on DOKAN

We have introduced this new commission type in order to keep a balance between the earnings and profit of both the admin and the vendors. With only the percentage and the flat rate type, neither admin nor the vendors were getting the desired profit.

It is certain that the admin and the vendors will both be benefitted from this new commission type.

The new Combined tax rate solves the hassle for admin to decide whether to add a percentage tax rate or a flat rate.

Now, if a product of a vendor is selling beyond expectations, the admin can add a combined tax rate and earn a little extra profit from that product. Not all the vendors will be doing great business.

So, it only makes sense that the vendors who are doing great business should pay more than the vendors who are not doing well. That way the admin will cover up the lost revenue from those vendors. That is where the Combined Commission rate comes in.

Also, the admin has to pay the payment gateway charges, and he pays that from his earned commission. So, it shrinks his desired profit.

With the combined tax rate, the admin can easily make up for it. Suppose, the payment gateway charge is $2. The percentage rate is 10%. So, if there is a sale of $150, the admin will get $15. And with payment gateway charge, he will have ($15-$2)=$13 at the end of the day.

But if he puts a flat rate of $2 with that percentage rate of 10%, which is the Combined commission rate, then he will earn a total commission of ($15+$2)=$17.

With the payment gateway charge, he will have ($17-$2) =$15, which is the desired profit of the admin.

FAQ on DOKAN Commission

Is there any other way to earn from Dokan than Commission?

Yes. With the Dokan Subscription package.

Can the commission rates be changed at any time?

Yes. as an admin, you can change the commission rate any time you want.

What is the minimum selling price for a flat commission rate of $10?

The minimum selling price has to be greater than $10(>$10). Otherwise, the system will not let you set a selling price less than the flat commission rate.

Wrapping up on Dokan Commission

About 20.000+ marketplace around the world is run by Dokan. With its advanced features, Dokan is gaining more strength day by day.

With the new Combined type in Dokan Commission, earning has become easier.

We hope if you employ this smart planning and intelligent feature, you can boost your marketplace and earn the desired profit exactly the way you want.

So, what do you think of the new Combined commission type? Do tell us.

How to Earn with Dokan Plugin Using Different Vendor Commissions

Revenue and earning is the main target of any business. If you are a business owner, you may always think how can I increase my earning! Similarly, marketplace owners also have the same goal to earn money through their marketplace. There are many different ways to earn money from a marketplace.

In Dokan multivendor marketplace solution, we have added multiple ways to earn money. Dokan will allow the admin/site owner to set commission for all the orders, products, store or product category. Dokan plugin can be used to start earning without investing a lot.

The base of earning in Dokan is the commission on sales. Now, the commission can be different in types. Dokan plugin allows some commission system like below :

  • Global Commission
  • Store base commission
  • Product base commission
  • Category base commission

Global Commission

The site owner can set Global commission rate which will be applicable for all the store of his marketplace. If he sets vendor commission 10% on Dokan → Settings → Selling options area then the site owner will get 90% from each sale of his website. This global rate will be same for all the store. Like as the marketplace has 3 stores which are STORE A, STORE B, STORE C. The commission will look like –

Store Vendor Commission Admin Commission
Store A 10% 90%
Store B 10% 90%
Store C 10% 90%

From the above table, you can see that if you set global commission for the vendors as 10% then each store will get 10% commission from each sale and admin will receive 90%.

This global commission will affect for each store if any store does not have any specific commission. That means if you did not set any store base commission then the global commission will affect for the store. You will get clear description after reading the full post.

Store Base Commission

In Dokan plugin, you can set global commission as we mentioned on the first point. Now, let us think that one of your vendors is selling a very high quality product with a higher price. So, you may think about increasing the commission rate for that specific store.

Dokan plugin always thinks about the customer usability. On that purpose, we have added the option to set different commission rate for specific user/store.

The site admin can insert different commission rate from wp-admin → Users. Now, he needs to edit the user profile of the vendor for whom the commission rate needs to be changed. On the bottom of the profile edit page, you will get the option to set commission –

Now, you are thinking that how the global commission and store base commission will perform together. Please check the below calculation:

Store Global Store Base Vendor Earning Admin Earning
Store A 50% 50% 50%
Store B 50% 90% 90% 10%
Store C 10% 10% 90%

From the above table, you will get a clear idea. Store base commission is overriding the global commission rate for the user.

Product Base Commission

In Dokan plugin, we have the option to set unique commission rate for each product or any specific product. If admin thinks that a product is selling with high price and need to earn more from the product that time he can set commission only for that product.

To set product base commission, the admin will edit the product from wp-admin → Products area. On the edit product page, you have to click on the “Advanced” tab to set commission.

Now, this product base commission will override all the global and store base commission rate. That means if you set commission for a product then the system will calculate the commission from that product.

If the store has 90% predefined commission rate then only for this product vendor will get 80%.

You can read our documentation to know more about our commission functionality.

Category Base Commission

Dokan Multivendor Plugin will help you to earn money from each category. You might be thinking how it can be possible!

Yes, now you can set category base commission for the vendor. You can set different commission for each category. After inserting a different rate for the commission, all other commission rate will be overridden by the category commission.

If a product category has 90% commission then all of the product under that category will be calculated for 90% commission (Category commission rate would not be applied if a single product has commission)

Dokan Product commission works like a chained system. Our plugin searches in the product area and if it does not get any commission then it keeps searching on the product category. Like that it search till the global settings.

dokan plugin commission system

Do you have any other way to earn money rather than commission?

If you think that commission based earning is not your target then we have a good news for you.

Dokan Multivendor Plugin will help you to earn from monthly/yearly subscription package. That means, the vendor need to purchase subscription package to upload product on your website.

So, you will get money from each sale of your subscription package. You can also use commission rate while the vendor purchase a subscription package.

You can read the full documentation about Dokan Subscription extension.

The multiple commission feature is included from Dokan Starter package.

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