How to Automate Paying Suppliers with Shopify

supplier payments

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?


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).

1. Invite them to a Collaborator account

You can now invite your Collaborators to join your account:

  1. Go to CollabPay
  2. Go to “Collaborators
  3. Click the “Invite Collaborator” button

2. Link them to products

You’ll also need to associate your Collaborator (supplier) with specific products they are going to earn from, which you can do with these four steps:

  1. Go to CollabPay
  2. Go to the “Collaborators” page
  3. Click the “Connect to products” button
  4. Choose the products to connect the Collaborator to

Setting up for automatic payouts

Using Stripe

Learn how to connect Stripe to CollabPay.

Using PayPal

The CollabPay site 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 
  • Permission to use PayPal Payouts from PayPal (they need to unlock it for you after requesting)

To connect PayPal in the meantime, you can follow the below steps:

  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
paypal payouts setup with collabpay apps

Next, you will see a message from PayPal about contacting them to enable this PayPal Payouts feature. 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. 

Payout statuses on CollabPay


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 payout – meaning that the payout is calculated, and no more orders will be added (but not yet sent)
  • Active – orders are still being added to the payout

Knowing the difference between these will enable you and your suppliers to quickly track how much is being paid. This can be important in 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 using CollabPay?

The number of payouts you do per month depends entirely on what you set on the Collaborator. You can set them to be paid daily, weekly or even monthly too.

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 a CollabPay subscription too?

CollabPay only requires the store owner to pay for the service. All Collaborators have free accounts.

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. 


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.

Read more