Dynamic Marketplace Commission Calculator
Automated system for calculating seller commission rates based on product category, sales data, seller performance, and promotional periods.
Solution
This marketplace commission system calculates fair rates by analyzing multiple factors that impact commission structures. It evaluates product categories with different base rates and sales thresholds, automatically applying lower rates for categories like home goods and higher rates for fashion items. Seller performance metrics directly influence commission adjustments, rewarding high ratings and fulfillment rates with reduced commissions.
The system factors in sales volume through multipliers that benefit high-volume sellers, promoting growth and marketplace expansion. During promotional periods, the calculator automatically applies temporary rate modifications to align with marketing initiatives. All calculations seamlessly combine to generate a single, transparent final commission rate that balances marketplace revenue needs with seller incentives.
How it works
The decision graph processes commission calculations through several connected components:
- Base Rate Assignment: Determines initial commission percentage based on product category and sales amount thresholds.
- Performance Evaluation: Analyzes seller metrics including rating and fulfillment rate to apply adjustments.
- Promotion Detection: Checks if current date falls within promotion period dates.
- Volume Analysis: Applies multipliers for high-volume sellers who exceed set thresholds.
- Final Calculation: Combines base rate, performance adjustments, and promotional factors to produce the final commission rate.
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