Do you daydream about having a store with lots of visitors converting and making a repeat purchase? If yes, then this can be done by launching an online marketplace. The OpenCart marketplace extension can be a great assist to non-coders who want a digital solution to start ane-marketplace.
Now the question that appears in mind is how the store owners earn money from a marketplace? There can be one or many revenue models an online marketplace supports like commission model, membership plans, product listing fees, subscription plans, etc. and these can coexist.
With an online marketplace, the dream of having endless sales will come true. Major constraints a physical store have over a marketplace are limited customer base, more maintenance expenses, and the time of operation. The owner does not have to give much time to maintaining sellers or the inventory because this will be done by the seller himself. Also, any customer can place their order with convenience of time and place.
The OpenCart Marketplace module is integrated with different revenue models that hold up to the idea of generating money in sleep. The owner can ask as many sellers to register as they want and earn passive income with every order they complete. Customers can place orders from multiple sellers and grab some really good deals at a competent price which is the beauty of a marketplace.
This post is all about the commission revenue model supported by OpenCart Marketplace extension well designed by Knowband for all the people who want to create a marketplace. Let’s see how the commission revenue model works.
The Commission Model for OpenCart Marketplace:
What is the commission model? The commission is a fixed percentage of the total amount given to the respective person who charges it. The person who charges the commission will get some money from the seller after every sale the seller makes. The OpenCart multi-seller marketplace extension has a fully manageable commission tab where the seller can see the commission earned on every order and from every seller.
How the commission will be charged on OpenCart Marketplace?
There are different ways the seller can be charged with a commission. The store owner can set a different commission for sellers and products. OpenCart Marketplace extension’s commission model is fully configurable and is easy to understand.
All the sellers on OpenCart Marketplace can be charged with the same commission percentage. This is called the global or default commission which will be equal for every seller on the platform. The store owner will have to set the percentage and currency type for implementing this in the online store.
Different commission from different sellers:
Another way to charge the commission on OpenCart Marketplace is a different commission from different sellers. If the admin decides a fixed percentage for a seller then he/she will be charged with that and not with the global one. The extension will give priority to the seller commission when calculating the overall commission.
Set the default commission on categories:
The third way the commission can be set is category wise. Not all the product on the marketplace has the same profit margins hence the owner has to define the percentage as per the categories. If a seller will be charged higher than the product value or the profit margin then he might discontinue selling on your marketplace. It is important to attract more sellers on a marketplace to keep up the sale. Hence, the category wise commission feature is a required functionality and makes it unique from the other solutions available in the market.
Note: The commission charged may or may not include the taxes and this is the sole decision of the OpenCart marketplace owner.
The OpenCartMulti-vendor Marketplace plugin is a fully-fledged marketplace extension with numerous admin, seller benefits. It has a separate admin panel and a functional front end seller dashboard.
Now you know the commission revenue model and all of its features that are inherited in the OpenCart Marketplace module. The marketplace extension is easy to install and configure. It is compatible with all the other OpenCart modules, supports multiple languages, and is also available for Journal theme.
You can visit our Knowband store to take a free demo of the extension. We have solutions for all the eCommerce issues and many extensions for your existing stores to improve your sales and customer experience. The Marketplace module is also available for PrestaShop and Magento platforms.