3 Successful Commission Models for Ecommerce Sale Representatives

Nathan Orr

eCommerce sales representatives are the smiling face of online business. Treating them well is the key to success, and this includes good a commission model.

3 Successful Commission Models for Ecommerce Sale Representatives

After all, these are the people working directly with customers to determine their needs, and find the best solutions for them. They’re experts at seeking out new leads to drive business, and ensuring that sales processes go smoothly.

When they’re happy, they make your customers happy, which is exactly why it’s so important that webstore managers use an effective model for commissioning their sales reps.

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On that Note: Today we’ll be looking at Ecommerce sales representatives, the roles they play in webstores, and the different kinds of commission models used to motivate them.

The Roles of Sales Reps

The Roles of Sales Reps - 3 Successful Commission Models for Ecommerce Sale Representatives

Found across countless online operations, Ecommerce sales representatives play a variety of integral roles in the businesses they support.

Sometimes they’ll be brought on as independent sales representatives, or temporary contractors who work to promote businesses in specific areas. Others are simply employed in stationary positions by the businesses they represent.

But regardless of their specific employment status, Ecommerce sales representatives usually have three primary responsibilities:

Selling their Business’ Products and Services

Assisting their Customers

Maintaining their Professional Relationships

Selling Products and Services

Whether cold calling over the phone, or responding to customer inquiries live over the web, Ecommerce sales representatives are experts at selling to prospective customers.

They become intimately familiar with the product or services they represent, and use their knowledge to inspire customer action.

Assisting Customers

Assisting Customers - 3 Successful Commission Models for Ecommerce Sale Representatives

From answering general questions, to performing cost-benefit analysis for both new and returning clients, sales reps are here to help.

Resolving customer concerns, addressing complaints, and going the extra mile to secure sales—and win over the customer—make sales reps a vital problem-solving addition to many Ecommerce teams.

Maintaining Relationships

Fostering business relationships and good customer service are keys to repeat business, and a primary strength of Ecommerce sales representatives.

A common duty of these reps is to track and nurture relationships with existing clients to inspire future sales. They follow the interests, goals, territory, and activity of their clients, observe opportunities, and reach out accordingly to stimulate action.

Effective Commission Models

Effective Commission Models - 3 Successful Commission Models for Ecommerce Sale Representatives

There are multiple kinds of commission models used in businesses, and they’re seen in both online and in physical storefronts.

We’re listing the most popular 3 here, with other commission models usually being variations of the following:

A Base Salary with Commission

A Variable Commission

A Straight Commission

Base Salary plus Commission

This is the most common compensation model that most company’s use today. With it, Ecommerce sales representatives enjoy a consistent salary, and earn an additional portion of income from their sales as well.

Under this model, sales reps will have a consistent flow of base income, and be motivated to sell better to earn even more. However, commission payouts generally use a smaller percentage of the sale when a base salary is involved.

Variable Commission

Variable Commission - 3 Successful Commission Models for Ecommerce Sale Representatives

This model alters the rate of commission earnings depending on how well sales representatives meet preset sales goals. Variable commissions may also include a base salary, or be purely commission based.

If sales goals are surpassed, then the representative’s percentage of income earned is increased. Likewise, if their sales performance is underwhelming and goals are not met, they receive a smaller overall percentage.

This performance-dependent model is great for motivating Ecommerce sales representatives who are entering new sales markets. However, it does also mean that your sales reps won’t be able to accurately anticipate their income very well.

Straight Commission

Straight Commission - 3 Successful Commission Models for Ecommerce Sale Representatives

Entirely performance-based, under this model the entire earnings of Ecommerce sales representatives completely depended on the sales they make.

Sales reps do not receive any form of stable salary, rather, their income comes directly from the percentages they earn from sales. This model is great for some sales reps because it involves less pressure from the company they work for. But, if a sales rep is unable to perform well, they also won’t be making any profits.

An excellent model for confident sales reps, and those who are getting started and looking for a low risk position. If they fail to meet expectations, the company that employs them won’t be negatively affected, and the only losses are the sales reps time.

Complete Sales Rep Commission Extension for Magento

Magento store owners wanting to empower their webstores with commissioned sales representatives, here’s an effective extension from CreativeMinds.

Regardless of which model you wish to use, or how many representatives you manage, the Sales Representative Commission Manager for Magento 1 and Magento 2 will support your needs.

They enable your Magento store to manage sales representatives and define commission rates as desired. This includes automatic payment schedule options, and the ability to assign customers to specific sales representatives.

These extensions also comes with sales tracking so managers can monitor their team’s performance, and create incentives that increase productivity.

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