Paying Different Vendors
Behind-the-Scenes Split Payments
Whenever purchasers are making a purchase in a marketplace, they are most likely purchasing from different vendors for different items. For drop shipping, the payment may get split out even though the shipment might go to a single location. Also, the payment may be split behind the scenes to go to the different vendors or sellers.
It’s “behind the scenes” because the customer just sees the items lumped together for one sum payment in their cart checkout, but those payments are actually being split out and sent to the different vendors the items are from.
In some marketplaces, for the sellers and group buying as well, we’ll send them payments immediately in an automated way via the eCommerce application. In these circumstances, we really need to represent this idea of splitting out the payments behind the scenes as well.
What that looks like depends on the payment provider, and we can have different payment providers per vendor where transactions are processed per payment per vendor. But usually what happens is we’ll work with the payment provider for the overall marketplace or buying group’s organization, and through their API’s we can send payments to the vendors with the correct amounts based on the schedule or an automated job that’s running.
This way, they can receive payments right away, nightly, weekly, monthly, or whatever option they choose, and we can essentially have this reconciliation process to process those payments to all the vendors.
It’s also crucial within a marketplace in general to allow the different vendors to have different payment processing information. In some marketplaces, it makes sense to allow the vendors to put their payment information in and have some verification process to they can confirm that everything is working as expected and effectively. This enables the vendors to receive the payments directly.