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How to Split Payments to Vendors on WooCommerce Automatically

split payments vendors on woocommerce store

Last updated on 3 December 2022

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 app, you can assign vendors to products and assign them a percentage of the sales. Then, you can set up automatic payouts to fully automate the process.

About CollabPay

CollabPay can be used in conjunction with multiple platforms at once. That means if you have a Shopify store and a WooCoomerce store, you can connect the same account to both of them.

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 funds based on rules you set on a per-product basis.

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

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

1. Integrate CollabPay with your WooCommerce store

woocommerce website home

a. Sign up for CollabPay

First, you need to sign up for the CollabPay app. To do this. You can do this by going to the CollabPay app page.

b. Install the WordPress plugin

Once you have created an account, you will need to install CollabPay onto your WordPress site. Simply go to the CollabPay plugin page and install it.

c. Connect them together

Follow this simple tutorial to learn how to connect them together using the API key. It’s as simple as creating a key in Collabpay and then adding it to the plugin.

In short, all you need to do is:

  1. Go to your CollabPay account
  2. Go to “Integrations”
  3. Click the “Setup” button next to WooCommerce
get api
  1. Copy the API key
api key
  1. Paste it into the CollabPay WordPress plugin
paste api

2. Invite Collaborators to connect to your account

Once you have connected them together, you can begin to build out your CollabPay account and invite Collaborators.

collabpay invite
Click to enlarge

You can do this by:

  1. Go to the CollabPay site
  2. Click on “Collaborators” on the upper-left
  3. Selecting the “Invite collaborator” button

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 earn from product 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. You can also assign loads of products at once by attaching to Vendors or Tags that the products have
  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. Go to settings and adjust to suit your store

Now, you will need to go to the Settings page and make sure everything is set up the way you want. You can choose from a wide range of settings, such as:

5. Set up your Payouts

PayPal business account screen

You can either payout manually or automatically:

  • Manual payouts – go to the payout page and click the “Mark as paid” button.
  • Automatic payouts – set up a Payout system
Setting up automatic payouts using Stripe

You can set up automatic payouts using Stripe. Take a look at the Stripe guide.

Setting up automatic payouts using PayPal

To qualify for automatic payment features in CollabPay, you will need to have a PayPal business account and apply for PayPal Payouts to be unlocked on your account. You need to contact PayPal and request access to it. Contact them via call or chat to get started.

To link PayPal with CollabPay, all you need to do is:

  1. Log into CollabPay
  2. Go to “Settings”
  3. Go to “Payouts” > “Sending payments”
  4. Click the “Login with PayPal” button
  5. Now just log in and connect PayPal. Next, you will need to wait for approval to take place after you have contacted PayPal and asked to use PayPal Payouts.

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

PayPal App Center for PayPal Payouts

About 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 Collaborators. This means that CollabPay doesn’t take any commissions or act as a middleman, which is great.

Using CollabPay without automatic payouts

You can use CollabPay without 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.

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. 

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