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How To Split Payments & Autopay Your Vendors On Shopify

Split-payments-pay-vendors-shopify
Published 17 January 2022

Last updated on 12 November 2022

Do you need to pay your vendors automatically using some sort of split payments app for Shopify? Now that’s possible! I’ve been needing this feature in my stores for years, but it’s not been possible until now so I thought I would write a blog on how to set it up.

Basically, if you have created a product with someone or need to pay a vendor/supplier their cut of the product sale, you can use CollabPay to calculate the earnings and split the payments automatically. Let’s get started.

If you ask yourself:

Can you split payments on Shopify?

Yes, you can. I’m guessing that you want to pay someone a cut of your sales? Then this article is for you. Shopify has a great system for orders, and it also has a great integration list. There is an app that you can connect to your store that allows you to assign percentages or flat fees of sales to others.

This method I’m going to show you allows an app to do this automatically without needing to do anything yourself. It fully automates your store and helps you avoid human error.

How can I pay my vendors their cut of the sales?

It’s quite easy! Just follow this guide, and it will show you exactly how to pay your vendors automatically. Assign them percentages and flat fees so that they earn from your store.

Is it possible to pay partial payments to someone on Shopify?

Yes, that’s possible using CollabPay. Simply follow this guide, and you will see exactly how CollabPay works.

Firstly, install CollabPay

Go to CollabPay on the Shopify app store. CollabPay is the app you need to process the auto-pay split payments to your vendors and collaborators of products. It features a range of easy-to-use tools that will calculate the amounts owed to vendors and split payments automatically.

Collabpay app

They have a 7-day free trial for all plans so you can test if it will work for you. You can see the pricing plans here.

How does it work?

CollabPay is essentially an app that calculates the percentages of what your collaborators are owed and pays them automatically on a timeframe of your choice.

You can add collaborators to your products and set percentages or flat fees that they will earn from the sales of those products. If you have set up automatic payments using PayPal, then you can pay your vendors without needing to do it yourself.

Automatic payouts

The automatic payouts work by connecting to your PayPal to CollabPay and processing payments using the PayPal Payouts feature.

When a sale happens in your store, CollabPay reads the sale price and calculates the amount your vendor is owed from the percentage you have set for them. Over time, when more sales come in, CollabPay will calculate the total amount that your vendor is owed.

Then when the payout date arrives (you can set custom payout intervals), CollabPay initiates a payout from your PayPal account directly to the vendor automatically. You can set when the payouts take place whether they are daily, weekly or monthly.

Scroll down for more instructions.

Who is CollabPay useful for?

  • A Shopify store that needs to pay vendors
  • If you created a product with someone and want to calculate & pay their cut to them automatically
  • If you need to pay your stock supplier
  • Split payments from your sales for any reason using Shopify

Basically, it’s perfect for any store owners who need to automate their workflow for anyone who created products together or people who are owed a cut from the Shopify sales.

Setting up CollabPay with your store

1. Invite a Collaborator & attach them to earn from your products

First, you need to invite a Collaborator (vendor) to join your store, then you need to assign them an earning on your product. You can either set a percentage earning or a flat fee.

  1. Go to the ‘Collaborators‘ page
  2. Click the “Invite collaborator” button
  3. Enter their details and assign them an earning value (percentage or flat fee)
  4. Click on a product that you want to add the Collaborator (vendor) to
  5. Click the ‘Invite‘ button

2. Adjust your settings

Go to the ‘Settings‘ page and set your settings to suit you best. Things you need to do are:

  • Connect PayPal to enable automatic payouts (go to step 3)
  • Choose if you want to remove tax and shipping amounts before earnings are shared
  • Add payment gateway fees to be deducted before earnings are shared between you and the Collaborators
Tax settings in collabpay

3. Set your payout settings

You can either pay your Collaborators (vendors) manually by pressing the “Mark as paid” button and paying them in your own way like bank transfer etc., or you can set up automatic payouts using PayPal Payouts.

You can do this by going to the ‘Settings‘ page > clicking on ‘PayPal Payouts‘ > then following the instructions. Please make sure you request access to PayPal Payouts by contacting PayPal support. Scroll down to find out how.

Click here to see the full guide on setting up automatic payouts in CollabPay.

Paypal setup

Video walkthrough

Setting up your PayPal account for automatic payouts

The best method to send money across borders to your vendors is by using PayPal. CollabPay integrates with PayPal to allow your vendors to be paid automatically no matter where they are in the world.

Now what you need to do is request PayPal Payouts, get approved and automatically split payments to your vendors. It can be lengthy because PayPal’s support at slow and sometimes painful, but once you have been allowed to use PayPal Payouts, then your store will be fully automated.

If PayPal happens to not allow you to use PayPal Payouts, then you will need to pay the vendors yourself manually and keep using CollabPay strictly for calculating how much the vendors are owed.

You will need to apply to use PayPal Payouts for CollabPay automated payouts. Please go to this page to enable the setting.

1. Scroll down & click ‘Enable

Enable paypal payouts button

2. Click ‘Contact us’ and apply for payouts

Contact us button

3. Contact

Scroll down and click ‘Contact us’. You can either choose to call or message them. PayPal will usually get back within a few hours and process your request.

Contact paypal

Once you have been accepted for PayPal Payouts

When PayPal accept your PayPal account for Payouts, you will need to link CollabPay and your account. You can do this by following the CollabPay PayPal Setup here or the steps below.

  1. Go to CollabPay, then go to “Settings
  2. Go to “PayPal Payouts
  3. Click the “Login with PayPal” button
  4. Click “Agree and connect
  5. Done!
Paypal payouts setup with collabpay apps

What platforms does CollabPay work with?

Currently, it’s only available on Shopify, but WooCommerce and Etsy are coming next. You can keep up to date with the releases by following their website.

Pricing

CollabPay has 3 payment plans. Each one includes a 7-day free trial.

Pricing collabpay

Does CollabPay automatically split payments on Shopify sales?

Yes, CollabPay automatically calculates and splits payments to your vendors. It’s the best method I’ve found to pay your product creators without needing to manually process payments yourself.

Summary

There you have it, an easy automated way to pay your vendors and collaborators on Shopify. I’ve been waiting for an app like this for years, and now it’s here. If you’re interested in viewing any more of my Shopify tutorials, please take a look and let me know if you want to learn anything else. I’m pretty clued up on Shopify!

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About Author

Will is a professional Ecommerce Shopify expert (7 years experience) & a professional Filmmaker/Video Editor (17 years experience). Now living between the Isle of Man & Brighton, UK. Highly experienced in Premiere Pro, DaVinci Resolve, After Effects, Shopify, WordPress & SEO. Owner of Teckers, Bounce Color, Stunt Camera Crew & more.

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