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Commission Structure for Vendors

Commission Structure for Vendors on TheKalpa.in

Registration: Free
Product Listing: Free
Shipping Charges: Borne by TheKalpa.in
Withdrawal Charges: None
Transaction Charges for Commission Remitting: None

Platform Commission: TheKalpa.in will charge a flat 10% commission on each sale made through the platform. This commission is deducted from the product price, ensuring that vendors receive 90% of the sale price directly.

Here is some scenario/example for vendors to easily understand that how much they can earn.

Scenario 1: Shipping Cost Borne by TheKalpa.in

Vendor: ABC Handicrafts
Product: Handmade Wooden Bowl
Product Price: ₹1,000
Shipping Cost: ₹100 (borne by TheKalpa.in)
Tax: 12% of the product price
Return Period: 2 days

Breakdown of the Transaction:

  1. Sale Price: The customer purchases the Handmade Wooden Bowl for ₹1,000.
  2. Shipping Cost: The shipping cost of ₹100 is handled by TheKalpa.in and is added to the total amount paid by the customer.
  3. Total Amount Paid by Customer: ₹1,000 (Product Price) + ₹100 (Shipping Cost) = ₹1,100.

Commission and Payments:

  • Commission Rate: 10% of the product price.
  • Commission Amount: 10% of ₹1,000 = ₹100.
  • Tax: 12% of ₹1,000 = ₹120.
  • Vendor’s Earnings (before deductions): ₹1,000 – ₹100 (Commission) = ₹900.
  • Vendor’s Net Earnings (after tax): ₹900 – ₹120 (Tax) = ₹780.

Payment Processing:

  • Product Delivery: The product is delivered to the customer.
  • Return Period: The return period of 2 days elapses with no return request from the customer.
  • Payment to Vendor: After the return period, the product status is marked as completed. The earnings of ₹780 are eligible for withdrawal.
  • Minimum Withdrawal Limit: The vendor has met the minimum withdrawal limit of ₹100.
  • Transaction Fee: There are no transaction fees for transferring the amount to the vendor’s bank account.

Summary:

  • Total Sale Amount Paid by Customer: ₹1,100.
  • Commission Deducted by TheKalpa.in: ₹100.
  • Shipping Cost Borne by TheKalpa.in: ₹100.
  • Tax Deducted: ₹120.
  • Vendor’s Net Earnings: ₹780.
  • Payment to Vendor: ₹780 is directly transferred to the vendor’s bank account after the return period of 2 days has lapsed and the product status is marked as completed.

Explanation to the Vendor:

  1. Customer Payment: A customer buys your Handmade Wooden Bowl for ₹1,000, and pays an additional ₹100 for shipping, making the total amount paid ₹1,100.
  2. Commission: TheKalpa.in takes a 10% commission of ₹100 from the product price of ₹1,000.
  3. Tax: You pay 12% tax on the product price, which is ₹120.
  4. Shipping Cost: TheKalpa.in covers the shipping cost of ₹100.
  5. Your Earnings: After deducting the commission and tax, you earn ₹780 from this sale.
  6. Payment Processing: Once the return period of 2 days is over and there is no return request, the ₹780 will be transferred to your bank account. There is no charge for this transaction, and since the amount exceeds the ₹100 minimum withdrawal limit, it will be processed promptly.

Scenario 2: Vendor Provides Free Shipping

Vendor: ABC Handicrafts
Product: Handmade Wooden Bowl
Product Price: ₹1,000
Shipping Cost: ₹100 (borne by the vendor)
Tax: 12% of the product price
Return Period: 2 days

Breakdown of the Transaction:

  1. Sale Price: The customer purchases the Handmade Wooden Bowl for ₹1,000.
  2. Shipping Cost: Since the vendor offers free shipping, the vendor will cover the shipping cost of ₹100.
  3. Total Amount Paid by Customer: ₹1,000 (Product Price).

Commission and Payments:

  • Commission Rate: 10% of the product price.
  • Commission Amount: 10% of ₹1,000 = ₹100.
  • Tax: 12% of ₹1,000 = ₹120.
  • Vendor’s Earnings (before shipping cost): ₹1,000 – ₹100 (Commission) = ₹900.
  • Vendor’s Net Earnings (after tax and shipping cost): ₹900 – ₹120 (Tax) – ₹100 (Shipping Cost) = ₹680.

Payment Processing:

  • Product Delivery: The product is delivered to the customer.
  • Return Period: The return period of 2 days elapses with no return request from the customer.
  • Payment to Vendor: After the return period, the product status is marked as completed. The earnings of ₹680 are eligible for withdrawal.
  • Minimum Withdrawal Limit: The vendor has met the minimum withdrawal limit of ₹100.
  • Transaction Fee: There are no transaction fees for transferring the amount to the vendor’s bank account.

Summary:

  • Total Sale Amount Paid by Customer: ₹1,000.
  • Commission Deducted by TheKalpa.in: ₹100.
  • Shipping Cost Borne by Vendor: ₹100.
  • Tax Deducted: ₹120.
  • Vendor’s Net Earnings: ₹680.
  • Payment to Vendor: ₹680 is directly transferred to the vendor’s bank account after the return period of 2 days has lapsed and the product status is marked as completed.

Explanation to the Vendor:

  1. Customer Payment: A customer buys your Handmade Wooden Bowl for ₹1,000.
  2. Commission: TheKalpa.in takes a 10% commission of ₹100 from the product price of ₹1,000.
  3. Tax: You pay 12% tax on the product price, which is ₹120.
  4. Shipping Cost: As you offer free shipping, you will cover the shipping cost of ₹100.
  5. Your Earnings: After deducting the commission, tax, and shipping cost, you earn ₹680 from this sale.
  6. Payment Processing: Once the return period of 2 days is over and there is no return request, the ₹680 will be transferred to your bank account. There is no charge for this transaction, and since the amount exceeds the ₹100 minimum withdrawal limit, it will be processed promptly.

For any other queries, please contact us at support@thekalpa.in.

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