Last week we spoke about how you can use the Ultimate Auction Pro plugin to start a business. In this article, we specifically covered how to use the auction plugin from the business point of view of the website owner. A large part of the post encompassed the various ways in which the website can be used to make money.
One of the ways of generating business through the website was from the commissions that would be generated from auctioning and selling third party products.
Today I am going to dig deeper into the commission feature in Ultimate Auction Pro plugin. The main intention here is to explain to you how this commission’s feature will work from the perspective of the website admin.
What is the Commission Fee?
Before we go any further let us first understand what exactly is the commission fee.
The products auctioned on the website can either belong to the website owner or it might be a third party product. The commission fee comes into the picture in case the seller of an auctioned product is not the website owner himself.
In this scenario, the following train of events will take place.
- First a third party seller will create an auction listing for a product that he might want to sell.
- Then bidders will bid on the product out of which one will win the bid. Alternatively a visitor can directly purchase a product instead of bidding for it.
- Once the purchase process has been completed the website owner (administrator) of the site will receive a predefined amount from the total price of the auctioned item.
Which User Can Set and Receive The Commission Fee?
Only the website administrator can set and receive the commission fee in the system.
Before You Start Using the Commission Feature in Ultimate Auction Pro
There will be certain settings and configurations that will need to be taken care of before you start to use the commission feature in Ultimate Auction Pro plugin. This prerequisite is concerned with the PayPal settings for the website.
Ultimate Auction Pro has been developed to integrate the PayPal Adaptive Payments which in turn will handle the commission feature in Ultimate Auction Pro.
The plugin has the parallel and chained payments enabled. In the parallel payment method, the admin ad the seller will receive payments at the same time. On the other end the chained payment method first the seller will receive the whole payment after which the commission amount will be deducted from the total amount and transferred to the website administrator.
The admin must be registered as a merchant on PayPal. The Creating and Managing API credentials section can be referred to generate the API keys for your PayPal account. The admin must also create an application at PayPal to get an AppID which will later be used in the plugin settings. The adaptive payments option should be selected while creating the application.
Settings for Commission Feature in Ultimate Auction Pro
Website Admin Settings
- The first step would be to configure PayPal settings at the backend. Settings would include providing a PayPal email address, API details and application ID.
- You will then have to go to the settings tab to enable the PayPal payment method as shown in the image below.
- The last step on the admins end to complete the settings for the commission feature in Ultimate Auction Pro would be to set the commission fee. In order to do so the admin will have to navigate to the Fees tab in the settings option of the plugin. Here the various commission options such as the PayPal method, commission type, and commission fee will have to be set.
Product Seller Settings
- The first step at the sellers end would be to set the PayPal email id within the PayPal tab field of the settings page of the plugin.
- This email is used to receive the payment from a bidder. It is also used to transfer the commission fee to the admin’s PayPal account.
How Will The Commission Feature in Ultimate Auction Pro Work?
- Step 1: While creating an auction listing a seller will see a notice regarding the commission fee that will be charged for the product once it has been purchased.
- Step 2: The seller will have to complete filling the auction details to publish it on the website.
- Step 3: PayPal is the only payment method that the seller can choose now since the commission needs to be transferred to the admin account through PayPal.
- Step 4: The auction listing is created and will look as below in the front end and the back end and. Bidders can start placing their bids on the product or purchase it using the ‘Buy Now’ button on the listing page.
- Step 5: When a bidder proceeds towards payment he is redirected to PayPal where total auction item amount is splitted into two parts i.e. commission amount for the admin and the remaining amount for the auction item seller. Once the payment has been made the bidder is redirected back to the auction website.
- Step 6: Once the purchase of an auction item has been completed the seller can now see the Final Amount that has been received by him at the back end in the ‘Your Auctions’ tab.
The above example is for ‘Parallel’ payment method. In the case of ‘Chained’ payment, the whole amount will be received by the seller first and then commission amount will be credited to the admin’s PayPal account.
Also, the above workflow is for a Buy Now transaction. The same thing is applicable when a bidder places a bid with the following changes.
A customer places a bid on an auctioned product. If the auction is won by the user, he will receive an email with the payment link following which the payment process will be similar.
That was the Commission Feature in Ultimate Auction Pro decrypted. This post should give you clarity how you can use this feature and how it will be useful to you from a business perspective. Though if you still have any doubts I’m always here to help you. Simply use the comments section to buzz me and I shall be happy to help 🙂