Digital Product Marketplace’s store owner and operators havea very long list of tasks to do in order to manage his/her digital productmarketplace well. This encompasses tons of administrative andnon-administrative works just to get their webstore all up and running. Digitalproduct marketplace owners have vendors to manage, customers to handle,marketing strategies and tactics to implement, developers/programmers to relatewith and many other stuffs that would definitely consume there day.
This is now why it is essential to free some of your time and therefore concentrate on many important tasks for your online marketplace. But how? We need to learn and adopt an automated process that will lessen the burden of manually doing administrative works for your digital product marketplace.
Common Problems of Manually Paying Vendor Commissions
Here are some of the problems that a Digital Product Marketplace webstore owner most likely to experience when doing the manual payment to vendors.
- Spend a lot of time paying vendors manually – Having only a few vendors and sales per week or month could still go through manual payments. But, if you are now getting more vendors and earning more sales, you may notice that you’ve been starting to spend a lot of time paying them manually than before, and it is not healthy especially if you also have other administrative tasks to pay attention to.
- Vendors do not want to wait long to get paid – It is important as a marketplace owner to always keep your vendors happy. One way is not to delay or give payments for too long. This may happen if you have tons of vendors and sales needed to split and give payments manually, and maybe a few of them are already overdue. We shouldn’t let this happen or your vendors will feel unsatisfied with your service.
- Adopt automated payments to easily scale up – As we have said earlier, business owners/staff should be doing something important for the betterment and growth of the marketplace instead of spending an awful amount of time in paying vendor commissions. This could actually prevent business upscale and growth.
- Possible problems with Manual Payments – Making tons of vendor payments each day or week can cause you a lot of confusion and headache. From different calculations, percentages, splitting of payments, tracking amounts and others can quickly get above our heads. Thus, the manual process are very vulnerable to different mistakes and errors. This is one main reason as to why we should adopt an automated payment service.
- PayPal is still the best and commonly used payment service – PayPal is still today the benchmark for most developers, vendors, freelancers, and customers on the web. Almost everyone has their PayPal accounts and you won’t get any trouble explaining things to you with regard to it. In conclusion, PayPal is the best practice for online payment solutions.
Benefits of Automating your Payment Processes
Business process automation is the use of technology to execute recurring tasks or processes in a business where manual effort can be replaced. It is done to achieve cost minimization, greater efficiency, and streamlined processes. Any business that wants to gain an edge over their competition should consider automation, which can simplify a company’s operations, not to mention speed them up by a great deal.
Automating your Payment Processes is essential when you areoperating a Digital Product Marketplace. Enumerated below are some benefits ofautomating your business processes.
- Quality and Consistency
Automation ensures that every action is performed identically – resulting in high quality, reliable results. Also, they will experience the same level of service from your business, thus providing a high-quality, consistent work output.
- Time Savings
Automation reduces the number of tasks you and your employees wouldotherwise need to do manually. This frees up your time to work on items thatadd genuine value to the business, allowing you to be more innovative andincreasing your employees’ levels of motivation.
- Improved Operational Efficiency andProductivity
Process automation reduces the time it takes to achieve a task, the effort required to undertake it and the cost of completing it successfully. Automation not only ensures systems run smoothly and efficiently but that errors are eliminated and that your best practices are constantly leveraged.
- Simplify Repetitive Tasks
Many employees spend most of their working day performing repetitive tasks, which can be both boring and when all of the alternatives are considered, unproductive. Automation software can, therefore, automate many of these repetitive processes, so your members of staff can focus on other areas of the business. This will allow you to use your staff more effectively, and it could even speed up the processes involved.
- Greater Opportunities
Automation can open doors to countless opportunities for your business. Instead of wasting your time doing repetitive administrative works, business owners might be doing something that would greatly scale and increase business growth. This is how important automating your business processes is.
Automate Payment Commissions on your Digital Product Marketplaces
Your Digital Product Marketplace might have several vendors who needed to get paid off their commissions. Whenever a digital product has been purchased on your marketplace, your vendors needed to get paid manually, and this consumes and wastes a lot of your time. This could cause your marketplace growth a huge setback just by doing this repetitive administrative work manually, especially when you needed to pay many people of their commissions, every single day.
This is now why automating your vendor payment commission is very important if you are operating a Digital Product Marketplace. The Admin user may find it very difficult to track each and every sales and afterward payout vendors manually. So here comes a solution – the PayPal Adaptive Payments Plugin.
Introducing PayPal Adaptive Payments
This plugin works by automating your vendor commissions byinstantly and automatically splitting third-party commission up to 6 receivers.This way, it will save you a lot of time in manually paying vendor commissions.
A great benefit brought by this PayPal Adaptive Payments Plugin is that it works best with EDD Frontend Submissions and Commissions extensions in operating your EDD WordPress Digital Product Marketplace.
If you want to scale up your marketplace and want to workwith more and more vendors, we strongly recommend implementing an automatedsolution brought by this PayPal Adaptive Payments Plugin.
Key Features and Benefits
Here are the Key Features and Benefits you can enjoy byusing this plugin:
- PayPal Adaptive Payment is a key plugin to usewhen running a multi-vendor marketplace. Also, this plugin is a tested and truetime-saver for all multi-vendor Easy Digital Downloads stores.
- The payment of third-party revenue can be doneinstantly and it saves significant time instead of manually paying your vendorcommissions every time a sale has been made.
- With the PayPal Adaptive Payments gatewayintegration, you can easily split payments with up to 6 different receivers atthe same time. This plugin handles payments between the sender of a payment andone or more receivers of the payment. It’s possible to split the order totalwith secondary receivers, so you can pay commissions or partners immediatelyafterward.
- You can set each receiver up with a specificpercentage of the payment within the settings for this gateway. Not only thatbut it provides configurations that can help you set this up as you prefer.
- Lastly, you can determine whether you would like to use a Chained or Parallel payment type. Chained Payments: Your Store accepts the entire payment and secretly pays commissions to Vendors after the sale. Parallel Payments: The customer knows everyone who will receive payment upon checkout – as the payments are split visually at checkout.
Please check out the PayPal Adaptive Payments Setup page for more explanations on how this plugin works.
Conclusion: Automate payments on your Digital Product Marketplace
Sticking with a Manual Business Workflow simply creates opportunities for delays and errors. Adopting business process automation, especially on paying vendor commissions, can improve organizational efficiency by automating redundant administrative and repetitive tasks. Remove those processes that are putting a strain on employee time and free them up with workflow automation, with this approach you will be able to accomplish more by using fewer resources and in a more efficient way.
In conclusion, vendor payment automation, if implementedcorrectly, can help you in increasing the efficiency and accuracy of your paymentprocesses. This can make your vendors very happy and will surely affect thegrowth and scale of your business.