Commissions

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Collecting Commissions

Say you’ve negotiated a commissions deal with a merchant or brand. Normally, every month you’d need to do a reconciliation usually over CSV to calculate the commissions and then have those commissions be paid out.

Rye drastically simplifies this process. With a 30 second install of the Rye Shopify app, you are now able to track all of the orders from your merchants in your Rye order log.

Commissions are automatically calculated, collected, and aggregated every month from your merchants into your Rye order log.

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Commission Processing Timeline

Rye’s commission process incorporates a 30-day return/cancel window to account for possible changes to an order. This window starts from the date of purchase, allowing time for customers to return or cancel their orders. It ensures that merchants aren’t charged commissions for transactions that don’t result in a final sale.

Here’s how the timeline works: Once an order is placed, Rye logs it but waits for 30 days to pass to ensure the transaction is completed without any returns or cancellations. On the 31st day after the order, Rye adds an App Usage charge to the merchant’s Shopify billing dashboard, representing the commission for that order. Rye then collects all App Usage charges from Shopify during the following month. Once collected, Rye issues an invoice and sends an ACH/Wire transfer to you, covering all commissions from orders completed two months prior.

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Example Timeline

• April 17: A customer purchases an item on your site.
• May 17: The return/refund window expires.
• May 18: Rye adds an App Usage charge to the merchant’s Shopify billing dashboard for the commission from the April 17 order.
• June 1-30: Rye collects payments from Shopify for all App Usage charges incurred in May.
• July 1-7: Rye sends you an invoice and initiates an ACH/Wire transfer for all commissions that occurred in April (including the commission from the April 17 order).

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Setting Commissions

For merchants that have installed the Rye app using your unique developer Shopify installation link, merchants can set their desired commission reward within the Rye dashboard in their Shopify app.