How to Easily Automate Payouts on Shopify Using This New App

automate payouts in shopify

When you operate a Shopify store, collaborating with other sellers can help you make more money. But having to send them payments through a manual process takes too much time. Shopify doesn’t have any great tools to solve this problem. Thankfully, there is one way to automate payouts on Shopify with ease: CollabPay.

What is CollabPay?

collabpay homepage

CollabPay is a Shopify-based tool where you can automatically calculate and pay the people you work with. You can use this technology for the following groups:

  • Product suppliers
  • Collaborators that you make a product with
  • Fellow retail stores you have shared products with
  • Vendors

Regardless of why someone needs a portion of your sales, CollabPay is a real time saver. It removes human error by handling all the steps for you. 

To find out how you can use this tool, follow these steps:

How to automate payouts on Shopify using CollabPay

1. Add CollabPay from the Shopify App Store


First, you want to go to CollabPay’s app store page and click the “Add app” button. From there, this will automatically create you an account on CollabPay and sync with your store.

You’ll want to take advantage of the seven-day free trial. However, you have three options to choose from when you decide to pay:

  • Freelancer Plan – Comes with three collaborators and payouts at $9 per month.
  • Startup Plan – Comes with access to 12 collaborators and unlimited payouts at $19 per month.
  • Business Plan – Comes with access to unlimited collaborators and payouts at $35 per month.

Choose your plan based on the number of people you work with. The system will automatically bring you through account creation.

You can see the beginner’s guide for more information.

2. Add Collaborators & assign them to individual products 

Once you have the app installed and ready, you’ll next want to add your collaborators.

  1. Click on the “Collaborators” tab in the upper left.
  2. Click “Invite collaborator” to invite them to create an account.

The system will invite them to create a free account on CollabPay. Next, you’ll want to:

  1. Go to the Collaborator’s page.
  2. Click the “Connect to products” button and connect them to products.
  3. Search through your list of products to find the ones they partner with you on. Use the search bar to find them by the product name or tag. You will need to type a few characters for products to show.
  4. In this screen, you’ll want to specify their portion of the deal by percentage or fixed cost. Select the number you agreed upon in the initial discussions. 

Once you have connected them to products and assigned them an earning amount, they can add their PayPal payout address to their CollabPay account, so they can get paid once you set up automatic payouts.

connect collaborator to products

3. Set up your automatic payouts

There are two methods to automate payouts in CollabPay:

  • Stripe
  • PayPal


Learn how to connect Stripe to CollabPay.


Next, you’ll want to create a PayPal business account (if you haven’t already). You can do this by going to their account creation page and clicking “Sign up“.

Once you have a business account, you’ll need to request access to PayPal Payouts. This is a feature by PayPal that allows applications to connect and payout on your behalf.

paypal payouts

To get that access, you’ll need to click the “Get started” button on the PayPal App Center. From there, you’ll need to get approval from PayPal customer service, who you can contact here.

You’ll need to discuss the reasons why you want to use PayPal Payouts with the customer service team.

4. Connect PayPal Payouts with CollabPay to set up automatic payouts

If you want to set up automatic payouts to your Collaborators, you can connect CollabPay with your PayPal account. You will need to have gotten approval from PayPal to access the “PayPal Payouts” feature.

Next, you’ll need to:

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

If you find yourself stuck, go to CollabPay’s tutorial to set up automatic payouts.

Wrap up

If you need to pay your vendors or collaborators with ease, CollabPay is the ultimate tool. Check out the app reviews to see this in action. Try it out for your store today with a seven-day free trial.

Jason Clarke

Jason Clarke

Building Shopify stores for 8 years. Built 2 Shopify apps. Crazy about marketing and SEO.

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