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Commission based Ecommerce



8:44 pm on Nov 17, 2002 (gmt 0)

10+ Year Member

Just curious is anyone is doing anything like this.

I'm setting up an online store, where I won't hold any inventory. Rather, get set up with 5 manufacturers, and pass on sales for a commission.

I've looked into paypal, and they do have a way to set this up. You can make a sale, and it can send the appropriate funds to the manufacturer and the commission to my account....BUT...it's paypal, and I don't want to run the risk of losing sales. Not that I have anything against paypal, but they do have a less than desirable reputation. And I'd prefer to set up a merchant account instead.

Does anyone know if there's setup available through any gateway that will handle this type of commission base transaction?


6:35 pm on Nov 18, 2002 (gmt 0)

10+ Year Member

Shouldn't the place that is actually fulfilling the orders be billing the customers? Then they would send you your cut every few weeks or month. I think that would be a much more typical arrangement.


6:41 pm on Nov 18, 2002 (gmt 0)

Im doing something similar to this in a while.

I assume you are concerned about tracking orders and getting your commission?

The way im going around it is taking the order and passing the details on to the manufacturer, and following up with a customer service call afterwards to see if the customer bought or not.

However, if you have a large turnover of customers this may be impracticle for your situation.

Just my 2c! :)



7:40 am on Nov 19, 2002 (gmt 0)

10+ Year Member

I have also been thinking of some solution to this problem.

One solution that *could* work but comes with its own set of problems is

Have separate accounts with payment gateway for merchant and yourself.

Write a software which keeps track of how much commissions the merchant owes you.

Check at each transaction if the total transaction value is less than what the merchant owes you .. if yes route transaction through your account ..else route it through his account.

1) I don't do it myself and don't know what all dangers are :)

2) It could be an accounting mess ..

3) It could be downright illegal.

I would welcome expert comments on this.


8:00 am on Nov 19, 2002 (gmt 0)

10+ Year Member

Hello. Regarding this, we are using Clickbank. We have an affiliate program and everything is tracked. I dunno however, if this is really what you are looking for.


8:18 am on Nov 19, 2002 (gmt 0)

WebmasterWorld Administrator mack is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month

The way I see this sort of thing working is if you have a trade account set up with the manufacturor.

You sell widgets from your site and the customer pays you through your merchant account. you then fax or email the order to your suplier who puts the order on your account and then dispaches the goods to your customer. then at the end of the month you settle your acount with the supplier.

you buy at trade price and sell on at retail price.


1:03 am on Nov 24, 2002 (gmt 0)

10+ Year Member

Thanks for the responses. This is tricky, as I would like to combine a store from 8 different manufacturers.

I can do this manually, but that means I would have to check the mail consistently to pass on the orders. This would mean that next day delivery couldn't really be feasible if I couldn't check my mail to pass it on.

There are affiliate carts out there, but that would be a store that's through another domain, and what you get out of the box is less than desirable for features.

All I can find is affiliate programs, but this is meant to set up to the manufacturer. I'm assuming there has to be a product or service out there that allows your store to be the bridge between the manufacturer and the consumer, while having control of your merchant account...but thus far I'm striking out.

I'm open to any suggestions... :)


4:50 am on Nov 24, 2002 (gmt 0)

10+ Year Member

Midwest from your first posting I got an impression that your primary problem is how to share money between you and merchants on the fly.

But from last posting I get an impression that order fulfillment is the main problem.

So which one is the primary problem you are trying to solve.


9:54 am on Nov 24, 2002 (gmt 0)

10+ Year Member

Sorry for the confusion.

Think about my position of a site owner. I'm not carrying the inventory, so I'm only passing on leads per say. It's a bit risky, since any chargebacks or shipping problems leave me as the source (where the transaction takes place), unless noted by contract. But either way it's my reputation on the line.

So to make things as efficient as possible, I would need an arrangement where the order is processed on through my gateway, via email to the manufacturer.

As far as money, I would need it passed to the distributor with the order. I want something that would subtract the commission to my account as the order payment is sent. There's a lot of affiliate carts and the such out there, but I can't find one that would work this way.

This would be a great program for Internet marketers, and I can't find any outsourcing companies adversting.

Thanks for the opinions guys.


1:08 pm on Nov 24, 2002 (gmt 0)

10+ Year Member

As far as sending email to the supplier(s) is concerned that is no big deal if you can do bit of programming yourself or can hire some one who knows.

But if you have multiple suppliers as you said you have .. then the problem with this is that if a buyer picks up 3 different items in his shopping cart each of which has a different supplier then they will have to be treated as three different orders and your 3 suppliers will have to send three separate packets.

Regarding splitting commissions on the fly .. I don't know of any thing that could be done.


1:32 pm on Nov 24, 2002 (gmt 0)

WebmasterWorld Senior Member nffc is a WebmasterWorld Top Contributor of All Time 10+ Year Member

> my position of a site owner. I'm not carrying the inventory, so I'm only passing on leads per say

You sound like a retailer to me, I would look at what mack wrote you need [imho] to normalise your relations with the suppliers. If you did this as a first step everything else will fall into place.

This how we work.

We have multiple suppliers for our products, some we manufacture ourselves onsite, some we have made exclusivly for us by outside comapnies, some we buy in and stock, some are dispatched direct from various suppliers.

Firstly; make the sale and get the cash. Doesn't really matter how you do this, we have our own CC terminal and transactions are processed manually. We do this because of the high % of mistyped numbers and to have control over spotting fraud. I really think it is a minor issue how it is done, the main [only?] aim at this point is to get the money.

Secondly; we download the orders from the web into our custom database. Each product is indentified by a unqiue product ID which includes a supplier ID. Each supplier ID has a custom file that determines what happens when we process the order [we process the order once we have payment and are happy it is not fraud]. It dosn't matter how many individual suppliers are contained on one order, the system knows who and how they want the order.

To give an example on a multiple supplier order, we may be manufacturing one of the products so our systenm will print out a list of components etc etc for our staff. One of the other suppliers may require a faxed order, thats what they will get, one of the others may require a comma seperated file, thats what they will get etc etc.


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