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How to Split Payments to Vendors on WooCommerce Automatically

split payments vendors on woocommerce store

If you are a WooCommerce store owner who collaborates with different vendors, your current system for splitting payments probably isn’t ideal. The extra time to read through your products and manually calculate results is a waste. Thankfully, this guide will teach you how you can automatically send and split payments through WooCommerce.

To split payments and pay vendors on WooCommerce, sign up for CollabPay and connect it to your store. Using this, you can assign vendors to products and give them a percentage of the sales of those products. Then, you can set up automatic payouts to fully automate the process.

How do you automatically split payments on WooCommerce?

The ultimate tool for splitting payments on your WooCommerce store is CollabPay. This tool connects to your store, and calculates owed funds based on rules you set on a per product basis.

You can also set up automatic payouts as well as using it as a calculation tool. CollabPay connects directly to your PayPal account and initiates the transfer from your account to the Collaborators account.

To set this up properly, you can follow these steps:

1. Install the CollabPay App for WooCommerce

woocommerce website home

First, you need to install the CollabPay app on your WooCommerce store. To do this. You can do this by going to the CollabPay app page for WooCommerce and clicking the download button in the upper-right corner. 

You’ll know you have it correct if you go to your WordPress page, click on WooCommerce, and see it on your extension list. From there, you’ll be able to go through creating a CollabPay account. 

2. Invite Collaborators to connect to your account

invite collaborators collabpay dash

After connecting your CollabPay account to WooCommerce, you’ll be able to add collaborators. You can do this by:

  1. Clicking “Collaborators” on the upper-left
  2. Selecting “Invite collaborator” on the upper-right corner

After inserting the collaborator’s email, they will be sent an invite email to create a Collaborator account that is connected to your store. From there, you can assign these collaborators to specific products in your store.

3. Assign Collaborators to products to earn from sales

CollabPay display for splitting earnings

Now you have created your Collaborator (or many Collaborators), you can begin assigning products to them with either a percentage or flat fee earning.

  1. Go to “Collaborators“, click the Collaborator that you want to assign to products
  2. Click on the “Connect to products” button
  3. Choose the products by typing 3 letters to search for them
  4. Choose a percentage or flat fee to give them from each sale

Determine what you owe them based on the deal you agreed upon. For example, if you both agreed the store would get 50% of the profits and the Collaborator would get 50% of the profits, then you would enter 50% into the percentage box.

CollabPay is now officially set up to track all of your product sales and calculate how much your Collaborators are owed.

4. Set up a PayPal Business account

PayPal business account screen

To qualify for automatic payment features in CollabPay, you will need to set up a PayPal business account. You can use an existing account or create a new account. Either way, you’ll need to fill out a form.

A business account gives you access to important features, such as new payment gateways, a seller profile, and PayPal Payouts (which is what we need).

Once you have a business account, you can follow to the next step.

5. Apply for PayPal Payouts to unlock automatic payouts

PayPal App Center for PayPal Payouts

PayPal Payouts is PayPal’s system for sending mass payments via an API.CollabPay can connect to this and initiate the payouts from your PayPal account, directly to the Collaborator’s. This means that CollabPay doesn’t take any commissions or act as a middleman, which is great.

To start, go to the PayPal app center and click the “Get started” button in the upper right. 

You’ll need to get approval from PayPal’s customer service to use PayPal Payouts. PayPal will guide you through the steps, but you’ll need to contact them via call or chat to get started.

Using CollabPay without automatic payouts

You can use CollabPay with having to connect PayPal. All you need to do is pay your Collaborators manually via bank transfer or wherever you wish.

Then, you will need to go to the “Payouts” page and mark the payouts as paid.

  1. Go to “Payouts
  2. Click on a pending payout
  3. Click the “Mark as paid” button. This will mark that payout as paid and now you can pay your Collaborator manually.

6. Access the Client ID & Secret Key from PayPal’s Developer’s Tools

PayPal Developer Tools website

Once you have been given access to use PayPal Payouts, you can follow this step.

PayPal’s developer tools allow you to get a Client ID and Secret Key to connect your PayPal to CollabPay for automatic payouts. To do this, you’ll need to:

  1. Go to the PayPal developer tools page
  2. Click the “My apps & credentials” on the navigation bar
  3. Click the “Live” button on the top (make sure “Sandbox” is not highlighted)
  4. Select “Create app” and name it CollabPay
  5. Click through until you find the Client ID and Secret Key 
  6. Access your CollabPay dashboard
  7. Go to “Settings” and then “Payouts” 
  8. Paste the Client ID and Secret Key in the fields on your CollabPay dashboard. 
  9. Click “Save

Following all these steps, your WooCommerce account is set up for paying your collaborators automatically.

You can see a more detailed guide on setting up PayPal Payouts on CollabPay.

Wrap up 

Test out CollabPay with a free trial for your WooCommerce store to see how it works for your needs. Automate payments to your collaborators to take the worry out of your hands and save yourself some time. 

About Author

Hey there, My name is Eli. I write for Digital Downloads. I write on all things eCommerce and tech.