Q: On what order value are commissions calculated (discounts, shipping, tax)?
A: Commissions are calculated based on the order's subtotal after any discounts have been applied. Shipping costs, taxes, and tips are excluded from the commission calculation. Essentially, the affiliate earns a commission on the actual product value the customer paid.
Here is an example breakdown:
Let's assume an affiliate has a 15% commission rate and refers the following order:
Original Product Subtotal:
$110.00Discount Applied:
- $10.00Shipping Cost:
+ $10.00Taxes:
+ $15.00Total Charged to Customer:
$125.00
The commission is only calculated on the subtotal after the discount.
Value for Commission Calculation:
$100.00($110.00 - $10.00)Final Commission Paid:
$15.00(15% of $100.00)