How to Set Disbursements Ratios for Consignors
What are the different types of disbursements and how do they work?
A Default Disbursement Ratio is the store's default percentage of a net sale that will paid to a consignor when an item is sold and payout is made.
A Disbursement Class is a monetary range that has a set consignor/store split. This should be used when store owners want to payout consignors based on how much a product is sold for.
For example, if an item is being sold from $0.00 to $200, your consignor might receive 50% and you (the store owner) might receive 50%.However, an item that is being sold for between $201.00 and $500.00 might have a split where the consignor receives 60% and the store owner receives 40%.
A Consignor Ratio allows a store owner to always payout a consignor at a fixed percentage for all items sold by that consignor and overrides the store default and disbursement classes.
This is used when the store owner wants the consignor ratio to override the Default Disbursement Ratio. This is set at a consignor level which means that consignors can each have a unique disbursement ratio.
Item Override Settings are based on upon the hierarchy of:
1. Default disbursement
2. Disbursement classes
3. consignor ratio
4. Product disbursement value edited if "Used default disbursements" checkmark is checked
The hierarchy remains the same regardless of whether there is a value in Disbursement class or consignor ratio.
For example, ...
hould be set when the store owner wants a percentage or fixed price of an item to override both the Default Disbursement Ratio and the Consignor Ratio.
The Use Buy Outright Setting is used if you do not have consignors and do not need to set up a specific disbursement ratio for your store. It is used when items are store owned. In this case, you need to record how much you purchased the item for in the Cost field upon item entry.
Single Consignor
The Disbursement Override Hierarchy for the Default Disbursement Ratio is:
The order of hierarchy for disbursement override is:
1. Item Override Settings
2. Consignor Ratio
3. Default Disbursement Ratio
What does this mean?
This means that if the disbursement Type is set (either % or fixed), in the Item Override Settings then this value will be what the consignor will be paid.
If the Item Override Settings is not set, and the Consignor ratio is set, then the consignor ratio will be the percent or the fixed price that the consignor will be paid.
If the Default Disbursement Ratio is set, and the Consignor Ratio and Item Override Settings are not set, then this is what consignor will be paid.
Default Disbursement Ratio
A Default Disbursement Ratio is the percentage of a net sale that will paid to a consignor when an item is sold and payout is made.
It is calculated based on the net sale of the item and does not include tax, shipping or any Buyer Fees.
When this option (box) is checked, Aravenda will use this percentage to payout consignors unless:
1. The consignor which the item came from has a Consignor Ratio set in their profile.
2. There is a percentage or fixed amount set at the item level in Item Override Settings.
When the box is checked:
*The default ratio must have a value.
**The product is the final override upon disbursement.
***The disbursement type and ratio can be edited after it is created and it will use that edited fixed or percentage ratio to calculate disbursement when the item is sold.
****When the box is unchecked, Aravenda will ignore the Item Override setting. This is used for stores who use the Multi-Consignor Inventory Item entry.
To set a default disbursement ratio:
a. Go to Store Settings.
b. Click Disbursements.
c. Check the box 'Use default disbursement ratio'.
d. Enter a value into the box.
Note:When you check the box 'Use default disbursement ratio' the ' Disbursement Classes will disappear.
What happens if I do not check the 'Use default disbursement ratio' box?
When the box is unchecked, Aravenda will ignore the Item Override setting. This is used for stores who use the Multi-Consignor Inventory Item entry.
When this box is unchecked, the disbursement is based on the store and consignor settings.
Consignor Ratio
A Consignor Ratio should be used when the store owner wants the consignor ratio to override the Default Disbursement Ratio. This is set at a consignor level which means that consignors can each have a unique disbursement ratio.
To set a consignor ratio:
a. Click Consignors.
b. Click Settings.
c. Enter the percentage of the sale that you would like the consignor to receive.
Item Override Settings
Item Override Settings should be set when the store owner wants a percentage or fixed price of an item to override both the Default Disbursement Ratio and the Consignor Ratio.
a. Click Items.
b. Click on the item that you would like to apply disbursement Item Override Settings to.
c. Scroll down to the bottom of the page to Item Override Settings.
d. Click the arrow and select 'Percentage' or 'Fixed'.
e. Enter the percentage or amount.
f. Click Save.
Use Buy Outright Setting
The Use Buy Outright Setting is used if you do not have consignors and do not need to set up a specific disbursement ratio for your store. It is used when items are store owned. In this case, you need to record how much you purchased the item for in the Cost field upon item entry.
To set the Use Buy Outright Settings:
a. Click Store Settings.
b. Click Disbursements.
c. Check the Use Buy Outright settings box.
Disbursement Classes
A Disbursement Class is a monetary range that has a set consignor/store split.
For example, if an item is being sold from $0.00 to $200, your consignor might receive 50% and you (the store owner) might receive 50%.
However, an item that is being sold for between $201.00 and $500.00 might have a split where the consignor receives 60% and the store owner receives 40%.
To create a disbursement class:
a. Enter the start range
b. Enter the End Range
c. Enter the Consignor profit (this is the percentage
of the sale that will go to the consignor minus any surcharges)
d. Click Submit.
Repeat this until all disbursement classes have been completed.
To edit a class that you have already created, right-click on the ellipsis (3 dots) on the right side of the columns below.
The Disbursement Override Hierarchy for the Disbursement Classes Settings is:
The order of hierarchy for disbursement override is:
1. Consignor Ratio
2. Disbursement Classes
3. Default Disbursement Ratio
What does this mean?
If the Disbursement Classes are set, and the Consignor Ratio is not set, the consignor will be paid according to the disbursement classes.
If an item is sold outside of the classes and a Consignor Ratio is not set, the item will be paid out based on the Default Disbursement Ratio.
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