Configuring commissions
How to set up the two core types of commission in Shipturtle: MRP - cost price, and percentage-based commission at the global, vendor, category and product levels.
⚡Quick Summary
Choose how you earn under Settings → Setup and configuration → Commission and payout: either MRP - cost price, or a percentage-based commission that you can override at the vendor, category and product levels. Rule-based commission is covered in a separate article.
Who this guide is for
Marketplace owners and admins who want to decide how much they earn on each vendor sale, and anyone updating commission settings for an existing marketplace.
What is a commission?
In a multi-vendor marketplace, you earn a commission on every product sold. The rest of the sale amount is paid out to the vendor, based on your marketplace policy. Shipturtle calculates this automatically and keeps the calculation visible to both you and your vendors.
1. Where to find commission settings
All global commission settings live in one place: Settings → Setup and configuration → Commission and payout.
Open Settings, then Setup and configuration.
The Commission and payout page, with the Commission section expanded.
💡 Tip: Settings marked with a V icon can also be overridden for individual vendors from that vendor's own settings.
2. Three types of commission
Shipturtle offers three types of commission. Choose the one that fits how your marketplace earns:
⚠️ Note: Types 1 and 2 are either/or: only one can be selected. This article covers types 1 and 2. Rule-based commission (by product tag or price range) has its own article: Configuring rule-based commission.
3. Type 1: MRP - cost price
With this method, your commission on each product is its MRP minus its cost price, applied to all products. For example, if the MRP is $200 and the cost price is $120, your commission is a fixed $80.
- Go to Settings → Setup and configuration → Commission and payout and expand Commission.
- Under Select the method for calculating commission from the two options below, select Set commission value as (MRP - cost price) for all products.
💡 Tip: Make sure each product has an accurate Cost price, found under Pricing on the product edit page, because that value drives your commission.
⚠️ Note: While MRP - cost price is selected, vendor, category and product commission overrides aren't available, so those commission fields are greyed out. To set commission per vendor, category or product, select Set a global commission rate (Type 2) instead.
4. Type 2: Percentage-based commission
With this method, you set a default commission rate (a Variable % and/or a Fixed amount) and override it where needed. There are four levels. When more than one applies to a product, Shipturtle uses the most specific one:
Global < Vendor < Category < Product
Example: Global commission is 20%, Vendor A's commission is 25%, and Product X (sold by Vendor A) has a product commission of 10%. Product X is charged 10%, because the product level overrides both the vendor and global levels.
⚠️ Note: If you also use rule-based commission, it can override these levels. For example, tag-based commission overrides all other commission settings for the products it applies to. See Configuring rule-based commission for details.
A) Global commission
- Go to Settings → Setup and configuration → Commission and payout and expand Commission.
- Select Set a global commission rate, then click Set commission rates.
- In the Set commission rates window, use Select channel to add the sales channel (for example, Online Store).
- Enter the Variable % and/or the Fixed amount for that channel.
- Click Save.
Set commission rates: a Variable % plus a Fixed amount for each sales channel.
B) Vendor commission
- Go to Vendors → Manage vendors.
- Find the vendor and click the Edit (pencil) icon.
- Open the Custom vendor settings tab, then choose Commission from the left menu.
- Tick Set a vendor commission rate and click Set commission rates.
- Select the channel, enter the Variable % and/or Fixed amount, and click Save.
Vendors → Manage vendors.
Click the Edit (pencil) icon next to the vendor. Vendor names and contact details are redacted.
Custom vendor settings → Commission, with Set a vendor commission rate ticked. Vendor details are redacted.
💡 Tip: The vendor page has its own versions of the discount and shipping settings. Tick a setting's checkbox to override the global value for this vendor only.
C) Category commission
- Go to Products → Manage categories. The Commission column shows each category's current rate. "Global" means the category has no override and uses your global rate.
- Click the Edit (pencil) icon next to the category.
- Tick Override global and vendor commission, then click Set commission rates.
- Select the channel, enter the rate, and click Save.
- Click Update to save the category.
Products → Manage categories.
Edit category with Override global and vendor commission ticked. One category name is redacted.
D) Product commission
- Go to Products → Manage products and click the Edit (pencil) icon on the product.
- Scroll down to the Commissions section.
- Turn on Set product specific commission, then click Set commission rates.
- Select the channel, enter the rate, and click Save.
- Click Update changes to save the product.
The Commissions section on the product edit page.
⚠️ Note: If you leave the product page without clicking Update changes, you'll see Leave page with unsaved changes? Click Stay and save first, or your commission won't be applied.
5. Variable vs fixed commission
For percentage-based commission, every rate is made up of a Variable % and a Fixed amount per unit. You can use either one or both together.
6. Discounts, shipping and tax
These settings sit below the commission method in the Commission section. Most of them can also be overridden per vendor.
A) Commission calculated on full price / discounted price
Choose whether commission is calculated on the full (original) price or on the discounted price.
Example: Price $100, discount $10 per unit (so the discounted price is $90), quantity 2, commission 30% + $5 per unit.
- On full price: (2 × $5) + (30% × $200) = $70
- On discounted price: (2 × $5) + (30% × $180) = $64
B) Discount % shared by marketplace
Decide how much of an order discount you bear. The rest is borne by the vendor. The default is 100%, meaning you bear the entire discount.
Example: Discount $10 per unit, Discount % shared by marketplace set to 40%. You bear $4 per unit and the vendor bears $6 per unit.
C) Commission calculated on shipping
Set how the shipping charges collected from the customer are split between you and the vendor. You can split shipping in the same proportion as the product commission, or use a Fixed % that you keep. The default is 100%, meaning you retain all shipping charges.
- You keep all shipping: set Fixed % to 100%.
- The vendor gets all shipping: set Fixed % to 0%.
D) Commission inclusive or exclusive of tax
Choose whether the variable % commission is calculated on the price including or excluding tax.
Example: Price $100 (including $20 tax), quantity 2, commission 30% + $5 per unit. If commission is exclusive of tax, the base is $80 per unit: (2 × $5) + (30% × $160) = $58.
E) Service tax on commission
If your region requires it, you can add service tax on top of the final commission. Set it to 0 if it doesn't apply.
7. Reviewing and recalculating commissions
Each order's commission is calculated when it comes into Shipturtle. You can review it on the Payouts page:
- Click View detail on an order to open its Payment breakdown, and hover over the ⓘ icons to see how each amount was calculated.
- Use the Adjustment field in the Payment breakdown to adjust a payout for exceptions.
Recalculating commission
If a commission is wrong, for example because a margin changed or a value was entered incorrectly:
- Update the relevant commission setting (global, vendor, category, product or rule).
- Go to Payouts and open the In-process orders or Payable tab, then tick the affected orders.
- Open the ⋮ menu at the top right and choose Recalculate commission.
⚠️ Note: Recalculate commission is available for orders in In-process orders and Payable, which haven't been invoiced or paid yet. If an order is already invoiced or paid, cancel the invoice, or mark it as unpaid, first. For the full payout flow, see Generate commission invoices and payouts.
Setup checklist
- Commission type chosen: MRP - cost price or percentage-based commission
- If percentage-based: global rate set for each sales channel, plus vendor, category and product overrides where needed
- Discount, shipping and tax settings reviewed
- Commission checked on a test order before going live
FAQs
Can I use MRP - cost price and percentage-based commission together?
No. They are alternatives, and only one can be selected at a time.
What does "Global" mean in the Commission column on Manage categories?
It means the category has no commission override of its own and uses your global rate.
Can I change a vendor's discount or shipping split without changing it for everyone?
Yes. In the vendor's Custom vendor settings → Commission, tick the setting you want to override and enter the vendor-specific value.
Is the commission what I keep or what the vendor gets?
The commission is what your marketplace keeps. The vendor receives the rest of the sale, based on your discount, shipping and tax settings.
How do I pay vendors a fixed wholesale price?
Use MRP - cost price (Type 1) and enter the vendor's wholesale price as each product's Cost price. You keep the difference between the price and the cost price, and the vendor is paid the cost price. If a product has no cost price, there's no commission on it and the vendor receives the full price.
Troubleshooting
My vendor or category rate is being ignored
Make sure the override checkbox is ticked: Set a vendor commission rate for vendors, or Override global and vendor commission for categories. Also check whether a more specific level applies, such as a product commission, or a rule-based commission.
The commission fields on my products are greyed out
Your commission method is set to MRP - cost price, which applies to all products and doesn't allow vendor, category or product overrides. Go to Settings → Setup and configuration → Commission and payout, select Set a global commission rate, then set the product commission.
The vendor is receiving the shipping charges
Check Commission calculated on shipping. At 0%, all shipping goes to the vendor. Set Fixed % to 100% to keep all shipping charges.
My product commission didn't save
Click Update changes on the product page before leaving it. If you see Leave page with unsaved changes?, click Stay and save first.
Existing orders still show the old commission
Changing a setting doesn't update past orders automatically. Recalculate them from Payouts (In-process orders or Payable tab → ⋮ → Recalculate commission), as long as they haven't been invoiced or paid. See section 7.
Recommended next step
Set your global commission method and rate first, then add vendor, category or product overrides only where you need them. If you need different rates by product tag or price range, see Configuring rule-based commission. Place a test order to confirm the payout matches what you expect.
If you're stuck, reach us at team@shipturtle.com or open a ticket on the support page.