How to Distribute Money between Vendors

11/11/2014
by Janice Knox

PayPal Commerce platform is a solution that allows marketplaces to accept payments and split them between the vendors involved, while the marketplace takes its cut.

To use PayPal Commerce Platform, you must first contact PayPal and become approved for the use of this solution.

After that, you’ll be able to set up a payment method that uses PayPal Commerce Platform. It’s important that vendors connect their accounts to your marketplace. If all of the vendors whose products are being bought connect their accounts, then customers will be offered that PayPal payment method at checkout.

In this case, everyone benefits:

  • Customers benefit from having to pay only once.
  • You benefit from not having to split the money between vendors.
  • Vendors benefit from getting the money from their sold products.