Paying your suppliers on Shopify Collective app

When a customer places an order in your store, you receive full payment for that order. From that payment, you need to pay your supplier for the cost of the product sold, and for the cost of shipping.

Shopify Collective automatic payments

Automatic payments are turned on when you install Shopify Collective, if you meet requirements. It’s the recommended way to pay your suppliers for products and shipping. There are no extra charges for using Shopify Collective's automatic payments feature.

When automatic payments are turned on for you and your supplier in Shopify Collective, the cost price of any Shopify Collective product you sell is automatically debited from your Shopify Payments balance. The funds then transfer to your supplier's Shopify Payments account automatically, once they mark the order as fulfilled.

You can view and keep track of Shopify Collective payments directly in the Shopify Collective app.

If you’re not approved to make automatic supplier payments, or you choose to turn off the feature, then it's your responsibility to agree with each of your suppliers how you’ll pay them for the cost of any products that you purchase from them. For example, your supplier could send you an invoice.

Requirements for using automatic payments in Shopify Collective

Your eligibility to use automatic payments in Shopify Collective is determined automatically according to the following criteria:

  • Your store has an active Shopify Payments account.
  • Your store has made at least $10,000 USD or CAD in sales in the last 12 months.
  • Your store has collected a substantial volume of consumer payments via Shopify Payments.

To use automatic payments with a new connection, they must also be eligible for the feature. You and your supplier must both meet the following criteria:

  • Both stores must be located in the United States or Canada.
  • Both stores must have a matching store currency of USD or CAD.
  • Both stores must have matching Shopify Payments payouts currency.
  • Both stores must have Shopify Collective automatic payments turned on.

You can check whether Shopify Collective automatic payments are turned on in your Collective (Retailer) app.

Steps:

  1. From your Shopify admin, click Settings > Apps and sales channels.

  2. From the Apps and sales channels page, click Collective (Retailer).

  3. Click Open app.

  4. From the Collective (Retailer) app, click Payments.

  5. In the Automatic payments section, check that automatic payments are turned on.

Turn automatic payments on with a supplier

If automatic payments are on in your Collective (Retailer) app, you can view which of your suppliers you are paying using this feature.

You can turn on automatic payments with a supplier directly from your Collective (Retailer) app, and the supplier will be notified of the change by email.

Steps:

  1. From your Shopify admin, click Settings > Apps and sales channels.

  2. From the Apps and sales channels page, click Collective (Retailer).

  3. Click Open app.

  4. From the Collective (Retailer) app, click Suppliers, then Connected.

  5. In the Automatic payments column, view whether automatic payments are on or off with each supplier.

  6. To turn on automatic payments with a supplier, hover over the Off badge in the Automatic payments column, and then click Turn on automatic payments in the popup message. The change is made immediately, and your supplier is notified that their payments for future orders will be automatic.

Turn automatic payments off with a supplier

To turn off automatic payments with a supplier, you need to request their agreement to do this. Follow the same steps outlined above, and hover over the On badge in the Automatic payments column. Then click email the supplier in the popup message. This will open an email in your default email service, in which you can write a message to the supplier to request to turn off automatic payments for all future orders. It is up to the supplier to decide if they want to do this. If they agree to turn off automatic payments, it’s then your responsibility to pay them manually for all future orders.

View your Shopify Collective payments

You can view your Shopify Collective payments on the Payments page of the Shopify Collective app. Payments are displayed only for fulfilled orders.

You can view the following information about your payments:

  • payment date
  • order number
  • supplier that was paid
  • payment status
  • amount that was transferred to the supplier for the product and shipping

You can also view Shopify Collective payments together with all your store's payouts in your Shopify admin.

Steps:

  1. From your Shopify admin, click Settings > Apps and sales channels.

  2. From the Apps and sales channels page, click Collective (Retailer).

  3. Click Open app.

  4. From the Collective (Retailer) app, click Payments.

  5. In the Order payments section, view Shopify Collective payments.

Insufficient funds

Shopify Collective will continuously try to collect funds for payment to the supplier until it is successful, but sometimes there are insufficient funds in your Shopify Payments account. Insufficient funds can occur when customers pay you using alternative payment methods like PayPal, when your payouts are frequent, or when you have a high number of refunds after a payout.

To avoid future issues or shipping delays with Shopify Collective orders, consider these options:

  • Use Shopify Payments as your only payment method at checkout.
  • Set your payout schedule to weekly or monthly to help ensure that you have a positive Shopify Payments balance for Shopify Collective to debit from, and pay your suppliers.
  • Find ways to minimize refunds and chargebacks
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