Third party collection of payment through my website using paypal

i have a website and i am the owner of the site, and there are third party agents who sells their products i want to charge certain % of per order for them… but i am not sure how would i collect the payments from normal customers who purchases the products from my site… would i store in my paypal account or… something?

Bill them for the commission separately means I will have to wait for them to pay me, is there ways to secure they will pay me back for the services given at the website? and should be charge to them in a monthly basis for the commission for the service, Or what is the best approach ethically used by most of the web sites that sell third party goods and services?

Thank you Sbbtina I would need some help on that I will appreciate your direction.

What method is used to charge commission separately and the actual fact of receiving the money for commission? is there a contract to be signed in order for them to secure me that they’ll pay for the service?

I agree with Dan. There are many examples for that job. If you need help, I can help you to find the right script for you.

You have to create that system, it’s structured however you make it. You can probably also adapt an eBay clone script to do the job.


So at the time I add a third party seller into the website They should have a paypal account, The website have a tracking system using the paypal IPN. Now when the time to bill them for my commission come, I can make them pay commission into a paypal account every month? or to a bank account. What system is use for that?

I guess before they pay me I have to send them a report of the sells tracked by Paypal IPN etc?

how is that systematized or structured?

You cannot use your PayPal account to accept payments on behalf of someone else. This is called factoring and is prohibited by PayPal and virtually all payment processors and merchant account providers.

You can keep track of the purchases using PayPal IPN, but have the payments go to the PayPal accounts of the 3rd party sellers. You then have to bill them for your commission separately.