How to Set Up Vendor Commissions & Payment Splits in Dokan

Many of our users have enquired about how to set up vendor commissions & payment splits in Dokan multivendor plugin. We are going to address that in this write-up.

You can set different commissions for the vendors to earn from the marketplace.

• Global Commission
• Product Wise Commission
• Vendor Wise Commission

The vendor-wise commission is the most enquired-about feature, and the customers also want to know how to enable split payment so that admins can receive their commission automatically.

We are going to learn how to do that today.

Vendor Commission & Payment Split Feature: Importance

The commission-based model is the most popular and effective way to earn from a marketplace. Other types of revenue streams are available to gain from a marketplace, but the best way is earning from a commission system.

Now, you can earn commission on product type, global type, and even on vendors. The most effective one is the vendor-wise commission.

Suppose, you have 30 vendors in your marketplace. You earn a 10% commission from all of them. However, only 6 of your vendors are doing great. The rest of them are somewhat struggling. Would it be fair to collect the same amount of commission from every vendor? Or would it be wise to collect more from those 6 vendors and less from the rest, giving them breathing space?

The second option is the smartest one. And that is where vendor-wise commission comes into play.

The Dokan multivendor marketplace plugin lets you set commissions specific vendor-wise. If you want you can set 0 commission for the more struggling vendors as well.

And you don’t need to worry about transferring those specific commissions one by one. Dokan plugin-supported payment gateways will take care of that. The Dokan plugin has payment gateways like-

• PayPal Marketplace
• Stripe
• MANGOPAY
• Razorpay

That will take care of the transactions. That means, that when a sale is made, these payment gateways will transfer the set commission for every vendor to the admin automatically. How cool is that?

While the whole commission system is free, you need to activate the premium version to configure the split payment option with payment gateways.

Now, let’s see how to set up vendor commissions & payment splits in Dokan multivendor plugin.

Set Up Vendor Commissions & Payment Splits in Dokan

Now we are going to show you how to set up vendor commissions & payment splits in the Dokan plugin.

We will start with the vendor commission system.

We are assuming you have already installed the Dokan free plugin and configured other settings of the marketplace.

Go to your WordPress Dashboard>Dokan>Vendors.

Click on the vendor that you want to edit from vendor Listing. You can add fixed or category based commissions for each vendor

At the bottom of the Vendor Edit Page, you will find the Vendor Commission % section.

Put in the amount of commission you want to set up for this vendor.

Click on the Save Changes button to save it.

Note: Vendor commission can be set both fixed or category-wise. It will override the global commission rate only for that particular vendor’s product.

This is how you can set vendor-wise commission in Dokan.

As we said, you need the premium version of the Dokan plugin to activate the Split Payment option. So, purchase and activate the Dokan Premium plugin.

You can enable split payments with these payment gateways-

1. PayPal Marketplace

PayPal Marketplace is a powerful payment solution that enables automated revenue splitting for Dokan-based marketplaces.

Read: How to configure the PayPal Marketplace Payment Gateway to Enable Split Payment Gateway

When a customer completes a purchase, PayPal automatically distributes the funds between the admin and vendors based on the predefined commission structure. This eliminates the need for manual settlements, ensuring vendors receive their payments instantly.

PayPal Marketplace also supports multiple currencies, making it ideal for global marketplaces. Since the transactions happen directly through PayPal, both admins and vendors benefit from a secure, reliable, and hassle-free payment experience.

2. Stripe Connect

Stripe Connect provides a flexible and efficient way to handle split payments in Dokan. With Stripe’s automated revenue-sharing system, marketplace owners can define how commissions are split between the admin and vendors.

Read: How to configure the Stripe Connect Payment Gateway to Enable Split Payment Gateway

Payments can be processed instantly or scheduled for later, depending on the admin’s preferences. This flexibility allows marketplace owners to implement different commission models, such as instant payouts for premium vendors or delayed payments for better financial management.

Stripe also supports over 40 countries and multiple currencies, making it an excellent choice for marketplaces that operate internationally.

Its fraud prevention features and compliance handling add an extra layer of security to transactions.

3. MANGOPAY

MANGOPAY is a payment solution specifically designed for European marketplaces that require compliance with strict financial regulations. Unlike other gateways that process split payments instantly, MANGOPAY uses an escrow-based system.

When a customer makes a purchase, the funds are held in a secure escrow account before being released to vendors according to the marketplace’s policies.

This system ensures greater security and compliance, particularly for marketplaces that deal with high-value transactions or multiple payment cycles. MANGOPAY also supports multi-currency transactions, making it an excellent choice for European marketplace owners who need a seamless cross-border payment experience.

4. Razorpay

Razorpay is an India-focused payment gateway that provides seamless split payment functionality for Dokan marketplaces.

It enables automatic commission deductions, ensuring that the admin receives their share while the rest is transferred directly to vendors.

One of Razorpay’s key advantages is its support for multiple Indian payment methods, including UPI, credit/debit cards, and direct bank transfers. The instant settlement feature allows vendors to receive their earnings without unnecessary delays, improving cash flow and vendor satisfaction.

Additionally, Razorpay is fully compliant with Indian financial regulations, making it a preferred choice for marketplaces operating in India.

Summary:

Payment Gateway	Best For	Automatic Split Payments?	Instant Vendor Payouts?	Global Support?
PayPal Marketplace	Global marketplaces	✅ Yes	✅ Yes	🌍 Yes
Stripe Connect	Flexible marketplaces	✅ Yes	✅ Yes (optional delay)	🌍 Yes (40+ countries)
MANGOPAY	EU-based marketplaces	✅ Yes	🚫 No (Escrow-based)	🌍 Yes (Mostly EU)
Razorpay	Indian marketplaces	✅ Yes	✅ Yes	🚫 No (India only)

This is how you can configure the split commission payment system of the Dokan plugin.

Earn Smartly From Your Dokan-Powered Marketplace!!!

Running and earning from a marketplace is quite challenging. That is why you have to be smart in how you configure your earnings from your marketplace.

As we said, the Dokan plugin lets you set product-based, global-based, and vendor-wise commission systems. In this article, we told you how you can use the vendor-wise commission system to your advantage and get the full benefit.

If you can follow our tips and use the vendor-wise commission system wisely, then you can easily earn from your marketplace.

If you face any trouble while setting up the vendor-wise commission and payment splits in the Dokan plugin, then do let us know in the comments section.