Effective commission management is a challenging task for sales-based businesses worldwide. If you manage a sales team within your online e-commerce store, an impactful commission structure is essential.
Common types of commission structures include product-based commissions and category-based commissions. Both these commissions help e-commerce businesses enhance their performance, sales, and profitability overall.
This blog post will discuss product-based commissions and category-based commissions, along with their use cases.
What Do You Mean by the Product-Based Commission?
Product-based commissions are directly applicable to each product. As a result, online e-commerce store owners can apply various commissions to particular items in their WooCommerce stores.
Use Cases Related to Product-Based Commission
There are different use cases for product-based commission, including:
– Products with High-Margin
Product-based commission helps businesses improve sales and revenues by applying higher commission rates on products with a high margin.
– Promotional Campaigns
Businesses can help sales agents earn higher commissions on specific products at particular events or occasions.
– Subscription-Based Stores
Businesses can offer incentives to sales agents if they market premium or renewal packages.
– Seasonal Products or Limited Time Offer
Businesses can offer sales agent commissions based on the number of time-sensitive products they sell to customers within a specific period.
What Do You Mean by Category-Based Commission?
A category-based commission allows businesses to charge referral fees or commissions at different rates for various product categories.
Use Cases Related to Category-Based Commission
There are multiple use cases for category-based commission, such as:
– Massive Product Catalogs
Category-based commissions suit e-commerce retail businesses or marketplaces that deal with extensive inventories. Therefore, they should take advantage of category-based commissions when looking to enhance conversions and sales.
– Multi-Category Businesses
Businesses that sell a wide range of products from several brands should benefit from category-based commissions. That’s because they can smartly implement varying commission rates on multiple product types.
How to Activate the Product-Based Commission?
As mentioned, you can benefit from the Sales Agent for WooCommerce when utilizing the product-based commission option. To enable commission on products or a product-based commission option on your WooCommerce store, follow the steps below:
- To offer the commission based on the product, go to Commission on Products.
- Choose the Commission on Products.
Select Product
- Go to the Select Product.
- Choose products from the multi-selector box for which the agent will receive the commission.
- Press Update.
How to Activate the Category-Based Commission?
You can configure the Sales Agent for WooCommerce plugin on your WooCommerce store to use the category-based commission option. To enable the commission on a category or category-based commission option, follow the steps below:
- To award commission based on category, navigate to the Commission On Category.
- Choose the Commission On Category.
Select Category
- Go to the Select Category.
- Choose categories from the multi-selector box for which the agent will get commission.
- Press Update.
Wrapping Up
Product-based commissions and category-based commissions are vital in transforming the productivity of online e-commerce businesses for all the right reasons. These types of commissions are beneficial for small and large businesses alike.
