When you have an active collab with a Shopify merchant, you can receive an affiliate link or discount code as a way to promote and track sales you refer to a store. You can share an affiliate link or discount code with your audience and every purchase made using it can earn you an affiliate commission. Your commission amount is specified on your Collabs account and can be found by viewing your Active Collabs.
How to get paid out
There are two ways that merchants using Shopify Collabs can pay out your earned commission: automatic and manual. The way in which commission is paid out to you depends on whether the merchant has activated automatic payments or is using manual payments. You can contact the merchant to find out how they're going to pay you.
If you work with a merchant that has activated automatic payouts, then you need to enroll into the feature as well. You can do this from the Settings page in your Shopify Collabs account.
Your payout method settings are found in the Shopify Partner Dashboard, which is the platform that handles payments for affiliates and freelancers who make money through Shopify. To access the Shopify Partner Dashboard, navigate to your Collabs account and press Payouts. Learn more about the payout methods supported by Shopify Partner platform.
When a product is purchased using your affiliate link, the commission for it is marked as pending for a holding period to make sure the order isn't refunded. After the holding period has completed, the commission is billed to the merchant to be processed to you. The holding period is set by the merchant, and can be between 1-90 days. To determine the holding period set by a merchant, review the Payment terms section of the merchant's profile page.
After the commission is paid by the merchant, it is added and will be visible in your Next payout. Automatic payouts are then scheduled to be paid out twice per month and will only be processed if your Next payout balance is at least $25. You can view your upcoming and pending payouts in the Payouts page. Learn more about payout threshold and frequency.
Automatic payouts are handled in USD. If you choose a different payout currency, then you might be charged a payout currency conversion fee.
Commission that is handled through automatic payouts has relevant tax collected & remitted on your behalf.
When a merchant is using manual payouts, the merchant pays your outstanding bill either using PayPal or using a payment method of their choosing outside of the Shopify Collabs app. If you have any questions about the schedule, then you can reach out to the merchant directly using their contact email.
Merchants that pay commissions to you through automatic payments can open a payment dispute for commission that's in Pending state as long as it's within the merchant selected holding period. If that happens, then you receive an email and can also access dispute details from the Payouts page in your Shopify Collabs account. In order to work out a resolution, you need to respond to the merchant. Only the merchant can resolve an open dispute.
A creator's services might be subject to sales or use tax. The responsibility to determine if taxes are payable is on the merchant and creator. If you and the merchant you’re working with have activated our automated payouts/payments feature, then your earned commissions are displayed on the merchant’s standard monthly invoice, and in such cases, Shopify collects and files taxes related to the sale of creator's services in certain jurisdictions in accordance with applicable law. For more information, refer to the Collabs Terms of Service.
If a merchant is based in the United States, then they might request a W9 form to be submitted through Shopify Collabs. When a merchant requests a W9 form, creators are required to submit the form when they reach a payouts threshold of 600 USD. If a merchant has requested a W9 form but a creator hasn't submitted a form, then payouts are capped at 600 USD for the year.
In all cases, merchants and creators have the responsibility to comply with their respective tax obligations, including reporting and remitting any applicable taxes and tax forms.