Shopify Commission Report

This Report provides a glimpse of the commissions earned by Shopify merchants’ staff, vendors, and influencers for promoting and selling their products.

The commission serves as an incentive for the merchants’ staff/influencers to work harder. So, to ensure the accurate calculation of commission, this will protect you from paying a miscalculated amount and losing revenue. It will also satisfy a merchant’s employees/influencers as they’ll get a deserved payout for their work.

How the Shopify Commission Report Works

This is a straightforward (simple) report shedding (removes) data on your orders, their total sales, and the commission spent on each order. Or 

This simple report removes extra details and shows your orders, total sales, and commission per order.

How are sales commissions calculated?

Let’s say, Mr. Dave, a staff member working for a Shopify merchant, agrees to promote and sell the products for a 10% commission.

Now, when Mr. Dave makes a sale worth $5000, he’ll get $500 as a 10% commission.

The base figure used for calculating the commission in this report- Total Sales.

The report allows for further customization with no technical expertise by choosing from the list of data fields to make it comprehensive (detailed).

For example, you can add your staff, vendor, or affiliate fields to make it even more specific and analyze your total sales breakdown to see how the commissioned sales number contributes to your overall sales. However, that’s not all a commission report can do, as analysis varies from store to store; it can compensate for this with custom data.

Case Study: Automating Profit-Based Commission Tracking for Staff

The Challenge

‍
A home decor store owner wanted to move away from flat commission percentages based on order totals. They wanted to calculate commissions based on gross profit to better reflect actual profitability.

The Solution
We created a custom Shopify commission report with two calculated fields:

• Gross Profit = Total Sales – Cost
  
  
• Commission (5%) = Gross Profit × 5%
  
  

Example Output
If a sale totaled $600 and the cost was $400:

• Gross Profit = $200
  
  
• Commission = $10.00
  
  

The Result
This setup allows the merchant to automate profit-based commission payouts and ensure staff incentives are aligned with actual business success, not just order volume.

Commission Report Fields

Here are the fields you’ll find in the Commission Report.

• Date: The date on which the sale is made.
  
  
• Order Name: Order identification number of the sale on which the commission is calculated.
  
  
• Total Sales: The final amount on which the commission is based and calculated.
  
  
• Commission: The additional income your staff earns based on the number of sales. It is expressed as a percentage of the value of the product sold.
  
  

Note: You can add more details to this report by selecting the fields from the “Add column” section.

Why is keeping track of the Commission Report important?

Keeping track of the Commission Report offers some key benefits, like:

• You know how much the commissions are paid on any day/month/quarter.
  
  
• Ensures accurate payment of commissions (which motivates your employees to work harder).
  
  
• Helps in planning the price of the product (if the product is exclusively sold on a commission basis, such as drop shipping).
  
  
• Enables comparison of sales with commission without commission (to track their contribution towards the total sales).
• Transparency and Dispute Prevention: Keeping detailed commission records prevents misunderstandings or disputes about earnings, fostering trust between management and staff or partners.

Note: If you're maintaining commission reports for your store, Report Pundit makes it simple. You can easily add commission percentages based on sales fields like Gross Sales, Total Sales, or Net Sales, and get accurate commission values and percentages for each staff member, vendor, or product.

Scenarios of Commission Reporting

Influencer payout reporting
Influencers promote Shopify merchants' products on platforms like YouTube and TikTok. They receive a fixed percentage/amount of the sales as commission in exchange. The Commission Report calculates all sales generated from the UTM parameter (content or term) from the YouTube/TikTok link. Influencers' discount codes also track these sales.

Vendor payouts
Vendors who sell through a Shopify merchant's store sometimes receive a commission for selling certain products. The merchant reports all sales from a specific vendor or specific product.

Partner/Staff payouts
Staff members or partners earn commissions based on their sales. You can also view our "Sales by Staff" report for this information.

Conclusion

In conclusion, the Shopify Commission Report monitors and manages different commission structures in your e-commerce business. If you're dealing with influencer collaborations, vendor partnerships, or staff incentives, check it out now to explore the flexibility it provides for your analysis.

Frequently Asked Questions(FAQ's)

1. Can I display both the order date and the return date for items in the same report?
Yes, you can include both fields to better track how returns affect commission payouts.

2. Can I group the commission report by order tags to track commissions more accurately?
Absolutely. Grouping by order tags (like "Spring Promo" or "VIP Customer") helps segment your payouts more strategically.

3. Is it possible to calculate commissions based on staff or individual orders?
Yes, you can group commissions by staff name, order ID, or both, depending on your reporting needs.