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Supplier POV: I received an order. Why is the amount in Paypal different from what is showing on Modalyst?
Supplier POV: I received an order. Why is the amount in Paypal different from what is showing on Modalyst?
Updated over a week ago

When you receive an order on Modalyst, you will be paid by the retailer via Paypal. All orders follow this process in order to receive payment for an order.

Payments for orders are paid directly from the retailer's Paypal account to your Paypal account. When you receive payment for an order, you will see the following transactions in Paypal:

  1. Payment for the order, which includes the Cost, Shipping, and any additional shipping costs for more than 1 item in the same package.

  2. Modalyst has a transaction fee which retailers owe. This fee is also included in the total received.

For Suppliers, there is no cost to join Modalyst except a 5% fee on orders, excluding shipping costs. This fee is immediately and automatically paid to Modalyst via Paypal.

Why is the amount paid to Modalyst greater than 5%?

When looking at your Paypal account you will notice that the amount extracted for the transaction fees are greater than 5%.

When the Supplier fee is paid to Modalyst, the retailer fee is also paid within the same transaction. That fee is also owed to Modalyst - Paypal couples it into the same transaction. Your net payout is the amount stated in your order, minus the 5% commission on the product.

Therefore, you will see an immediate fee paid to Modalyst, which includes:

  1. The Supplier transaction fee to Modalyst

  2. The retailer transaction fee to Modalyst

The way it works is this:

  1. When an order is paid for on Modalyst, the Retailer will pay you your Item Cost, plus the transaction fee associated with their account (2% or 5%), plus the shipping cost.

  2. When it reaches your Paypal account, Modalyst will then extract 5% plus the service fee associated with the Retailer account (2% or 5%).ย 

Here is an example using a Retailer who owes a 2% service fee.

Product's Retail Price = $100
Shipping = $2.50

The Supplier is owed the following:
Item cost = $60
Shipping = $2.50
โ€‹minus the Modalyst Service Fee of 5% of Retail Price = $5
TOTAL = $57.50
In your Paypal account, you will see the Retailer paid you:

Item cost = $60
Shipping = $2.50
Retailer Service Fee of 2% of Retail Price = $2
TOTAL = $64.50

Modalyst will then extract 7% (5% Supplier fee plus 2% Retailer fee) which equals $7.

$64.50 - $7 = $57.50

The Supplier nets $57.50 which is what you are owed as stated above.

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