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PayPal for Marketplaces: Admin Experience
PayPal for Marketplaces: Admin Experience

Learn how to track and process vendor commissions for the orders paid through PayPal for Marketplaces.

Olga Tereshina avatar
Written by Olga Tereshina
Updated over a week ago

You can revise the "PayPal for Marketplaces" payment flow in the Payment Transactions section (Orders -> Payment Transactions) of the Admin area:


Suppose you enabled the order DST-based commission rate of 10% (DST = discounted subtotal) and set your online store to operate in the "Warehouse" multivendor mode not to apply commissions based on shipping costs.


You get an order () paid with PayPal for Marketplace payments, and your online store registers the respective payment transaction for the amount of $672.35 in the Payment Transactions section (Orders > Payment Transactions):


This transaction verifies that the store has received money for the order from the buyer. Based on the transaction status, we see that the transaction was completed successfully.

Order #0024 contains two products:

  • Apple iPhone 6S (price $650.00, owner - the store administrator);

  • A PayPal product (price $10, owner - UK Vendor Ltd).


A store admin needs to ensure that the vendor who provided the "A PayPal product" product has automatically received their earnings from this order through PayPal for Marketplace payments.

You can check this info in the Vendor Transactions section (Orders > Vendor Transactions).

In the Vendor Transactions section, we see two transactions for Order #00024:

  • (Auto) Order paid – Vendor earnings: $9.00;


  • (Auto PayPal) PayPal for Marketplaces: Commission paid – Paid to vendor: $9.00.

The first transaction - "(Auto) Order paid – Vendor earnings: $9.00" - means that one or more products owned by a vendor were purchased, and the store administrator now owes money to the vendor. The amount of $9.00 results from subtracting the 10% order DST-based commission ($1) from the vendor’s share of the order discounted subtotal ($10).

The second transaction - "(Auto PayPal) PayPal for Marketplaces: Commission paid – Paid to vendor: $9.00" - means that the amount of $9.00 was automatically transferred to the PayPal account of the vendor, leaving the store administrator with a little less than $1 earnings from this sale in their PayPal account.

We say "a little less than $1" because, in reality, it is going to be one dollar minus the commission PayPal has charged for their service.

So, everything is fine: the vendor has received their earnings, and the store admin has received their commission. Both transactions were completed automatically.

In case a vendor doesn’t have a PayPal Business account registered in the Financial Info section, the store admin will have to find a way to pay out the money they owe to such vendors (with methods outside X-Cart), after which the information about the respective payout transactions will have to be manually added in X-Cart using the Create transaction button in the Vendor Transactions section (Orders > Vendor Transactions):


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