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How To Automate Supplier Payments on Shopify

how to automate payment

When you work with multiple suppliers, splitting payments can be a pain. The manual process of doing so is a pain. However, tools like CollabPay can help you automate supplier payments on Shopify. 

Below, we will provide you with a step-by-step process on how you can automate your supplier payments using CollabPay.

What is CollabPay?

collabpay intro

CollabPay is a Shopify app developed by Massive Monkey Limited that assists you by automatically splitting payments between multiple collaborators. The plugin works by automatically calculating earnings divided to different vendors or suppliers, producing reports based on that, and sending the money where it needs to go. 

CollabPay provides you access to four different plans:

  • Freelancer – 1 integration, 3 collaborators, 3 payouts per month ($9 per month)
  • Startup – 3 integrations, 12 collaborators, unlimited payouts per month ($19 / mo.)
  • Business – Unlimited integrations, Unlimited collaborators, unlimited payouts per month ( $35 / mo.)

“Integrations” refer to the number of apps it can work with. Shopify put most of the effort, with plans to expand to apps like WooCommerce and Magento coming soon. 

How Do You Install CollabPay?

collabpaysplit payment

To get started, you’ll need to have a Shopify store. Once you get that out of the way, you can install it by clicking the “Add app” button located on Shopify’s app store link

You’ll need to select a plan (from the list above) before starting. What you choose depends on the number of suppliers you work with. 

You’ll know the installation is done when you see it on your app list. If you are still running on a Shopify free trial, you’ll need to select a plan before installing CollabPay. 

Adding Your First Suppliers

In the upper-left-hand corner, you’ll see a link for collaborators. This is where you will list the people you work with (your suppliers). 

Because Collabpay works with PayPal, you’ll need your supplier’s PayPal email address to get started. Keep this in mind when filling out the form that contains your supplier details. 

You’ll also need to associate your collaborator details with specific products, which you can do with these four steps:

  1. Go to your app
  2. Go to the ‘Products’ page
  3. Click on the product you want to add a collaborator to
  4. Choose “Add new collaborator”.

Setting Up For Automatic PayPal Payments

The CollabPay website has a PayPal tutorial on how to get this done yourself. However, you’ll need these things to get started:

  • An active PayPal business account 
  • Confirmation of identity
  • Permission to use PayPal Payouts

You’ll need to access PayPal’s developer tools to get started. From there, you can follow these steps:

  1. Under “My Apps & Credentials,” select “live” and “create app.” 
  2. Enter the app name (CollabPay)
  3. Copy and paste the API keys from PayPal to CollbPay (under CollabPay settings, PayPal Payouts)
  4. Return to the developer page and scroll down 
  5. Click “enable” next to “payouts.” 

Next, you will see a message from PayPal just below about contacting them to enable this setting. You’ll need to communicate with PayPal regarding your store plans, so they know you are a business. 

PayPal is somewhat picky with this process, requiring all new applicants to go through the approval process. But a short conversation telling them that you are a Shopify eCommerce store owner should solve any problems. 

Finding Out Payment Status on CollabPay

payouts example

Once you have a processed order under a product associated with CollabPay, you’ll see it on a list under “Payouts.” There are two different settings to pay attention to:

  • Paid – meaning that CollabPay has sent the payout
  • Pending – meaning that the payout is calculated (but not yet sent)

Knowing the difference between these will enable you and your suppliers to quickly track how much is being paid. This can be important with maintaining your PayPal balance, ensuring you have enough to pay your suppliers. 

You can also filter to account for payout dates of interest for your supplier. If your supplier has a pay dispute, this can be essential information, claiming that you owe them something. When overcoming difficult suppliers, CollabPay makes things easy. 

How Often Are Suppliers Paid Under CollabPay?

The number of payouts you do per month depends entirely on your plan. For example, the freelance program is the cheapest, only allowing you to do three payouts per month. 

You’ll want to set these expectations with suppliers beforehand, ensuring they understand your limitations. Some suppliers like to receive payments often and daily, which you might consider if you make a solid profit by working with them. 

Will Suppliers Need To Pay As Well?

CollabPay only requires the store owner to pay for the service. Unless your supplier also has different vendors and suppliers to work with, there’s no reason for them to establish a CollabPay account. 

However, Suppliers will need an active PayPal account to receive payments. You can also accept payments via Collabpay by entering your PayPal email under the “account” section.

CollabPay FAQs

Does CollabPay calculate sales tax or VAT?

CollabPay can calculate sale tax and VAT.

Does CollabPay calculate sales prices?

If your product is on sale, CollabPay will automatically include these calculations. You won’t need to do anything weird with final payouts.

Does CollabPay slow down your store?

CollabPay does not slow Shopify stores because it is entirely off the platform. It requires no site code to run, so it will not slow down any store. 

Will Products automatically sync with CollabPay?

Yes, any products on Shopify will automatically be part of CollabPay. If you need to modify payouts per specific product, go to them in your products list. 

Conclusion

If you want to make real money with your Shopify store, you can’t waste your time chasing payments. Instead, allowing automated services to help you manage your store is how you focus on growth activities.

CollabPay is easily the most straightforward system for automating supplier payouts. If your current system for connecting suppliers is a struggle, check it out today to see how it works.

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