When you have a partnership with a manufacturer or collaborator, splitting profits automatically can be a lifesaver. For the longest time, Shopify didn’t have any great solutions for this problem. However, with CollabPay, splitting your earnings between different parties is much easier.
Below, you’ll find out the three-step process you need to follow to split profits automatically using this tool.
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Why would you need to split profits?
You would want to split profits with CollabPay if you do any of these:
- If you have created products with someone else
- You need to pay vendors
- Need to assign a percentage or flat fee of sale to someone
- Need to pay suppliers
Split profits on Shopify automatically
When using Collabpay, there are three major steps you need to follow for automatic splits:
- Getting the app for your store
- Inviting your collaborators
- Connecting your collaborators to products & assigning them an earning
A collaborator can refer to manufacturers, business partners, or artists you have partnerships with. Regardless of why you need to split payments on product listings, Collabpay is the best tool to get this done. You can find more details for these steps below.
1. Install the CollabPay app for your Shopify store
To Install CollabPay for your Shopify store, you’ll want to go to the CollabPay app page. The CollabPay app page will let you know more about its features, so take some time to discover why it is one of the best solutions for automatically splitting your payments on Shopify.
Clicking the large “Add app” button will bring you through the installation process. Because it works on the backend of your store, your customer experience won’t change. For your visitors, shopping in your store will be unaffected.
2. Go to the CollabPay dashboard & invite your collaborators
To start, you’ll be spending your time under the “Collaborators” tab found in the top-right corner. This tab allows you to see the list of people who you split your income with. So you’ll want to start by adding these people.
Invite your Collaborators
Clicking the “Invite collaborator” button in the upper-right corner will request the collaborator’s email. With this invitation, your collaborator will receive their own CollabPay account and a dashboard to see their earnings.
Inform your Collaborators
From there, you’ll want to inform your partners to go through the account creation process. Once their account is ready, they will want to connect their PayPal address to receive those payments. Tell them to:
- Click “Settings“
- Go to “Account“
- Add their PayPal email under the “Payouts will be sent to this PayPal account” section. (This will not show if they are not connected to any products).
3. Connect your collaborators to products
- Go to “Collaborators“
- Click on your Collaborator
- Click on “Connect to products“
Once their profile is complete, clicking the “Connect to products” button will allow you to assign them to products with an earning of the profits.
From here, you’ll be able to look through the products on your Shopify store. Simply select one or more, and a new pop-up will appear regarding your partner’s pay cut. You have one of two options for how your collaborator gets their fair share:
- A flat fee (the same cost regardless of how the price fluctuates)
- A percentage (which will change depending on your set price)
Clicking the “Save” button on the right side of the pop-up box will confirm. Make sure it matches what you and your partner have an agreement on.
4. Setup for automatic payments (optional)
To set up automatic payments through CollabPay, you need to have a PayPal business account with these features:
- A PayPal business account with ample funds
- A confirmed identity
- Permission from PayPal to use PayPal Payouts
You will need to contact PayPal using their contact form and request access to Payouts.
It might take a few days for PayPal to give you approval for their Payouts feature, so give it some time. To ensure you get approval for your integration, be ready to answer questions regarding your business and plans.
If you have approval for PayPal Payouts
Simply just go to the settings page, go to “Payouts” and then log in with PayPal. Here you can connect them easily.
How does splitting profits automatically help my store?
Automatically splitting payments using CollabPay ensures everyone gets their fair share and helps you avoid human calculation errors. It saves you time and effort you can now use to grow your business. The more administrative tasks you can automate, the faster you can grow your business.