---
title: "Marketplace commission"
---

Marketplace admin can set commission rates in various combinations, which enables to charge different commission for different product types, categories, sellers etc.

# Commission rule reference types

Each commission rule has its reference. A reference entity types are listed below. There are simple (one `reference_id` at once), and combined types, that take into account more than one reference at once. Each combination (`reference` and `reference_id`) are required to be unique.

- `site` - default commission applied for all products in the marketplace, can be overriden by other rules,
- `product_type` - applied to products of specified type,
- `product_category` - applied to products from specified category,
- `seller+product_category` - applied to products from specified category, and sold by specified seller,
- `seller+product_type` - applied to products of specified type, and sold by specified seller,
- `seller` - applied to products sold by specified seller.

# Commission rules priority

Multiple different condition rates can be applied to each of the items in order. That's why some of the rules are more important that others, and during commission calculation process only one is applied. Rule reference types priority is described below.

1. `seller+product_type`
2. `seller+product_category`
3. `seller`
4. `product_type`
5. `product_category`
6. `site`

# Commission rate

Each rule should have applicable rate attached. Commission rate entity describes the details on how the commission should be calculated. Available options:

- `type` - `flat` or `percentage`
- `percentage_rate` - applicable if `type` is `percentage`
- `include_tax` - indicates if commission should be calculated including tax
- `price_set_id` - applicable if `type` is `flat`
- `max_price_set_id` - maximum commission value
- `min_price_set_id` - minimum commission value

# Commission rate types

- `flat` - share for marketplace is a fixed amount,
- `percentage` - share for marketplace is a percent of price.

# Calculation

```mermaid
flowchart LR

id1(Take order line_item)
id2(Select applicable rule)
id3{Select associated rate}
id4a(Select appropiate price from price_set, return as a value)
id4b(Calculate % of the line_item price, return as a value)
id5(Clamp commission value between min_price/max_price)
id6(Save commission_line)


id1-->id2
id2-->id3
id3--type == flat-->id4a
id3--type == percentage-->id4b
id4a-->id5
id4b-->id5
id5-->id6

```

# Database models

```mermaid
erDiagram
    commission_rule ||--o| commission_rate : has
    commission_rule {
        uuid id
        string name
        string reference
        string reference_id
    }
    commission_rate {
        uuid id
        string type
        float percentage_rate
        bool include_tax
        string price_set_id
        string max_price_set_id
        string min_price_set_id
    }
    commission_line {
        uuid id
        string item_line_id
        string rule_id
        string currency_code
        float value
    }
```