How To Become A Dropship Supplier On Shopify In 8 Steps

In this article, we’ll unravel the process of how to become a Dropship Supplier on Shopify, setting you on the path to e-commerce success.

Key Takeaways

8 steps to become a Dropship Supplier on Shopify

• Step 1: Understand the Requirements and Considerations
• Step 2: Install the Shopify Collective Sales Channel
• Step 3: Invite Retailers to Connect
• Step 4: Get Paid on Shopify Collective
• Step 5: Set Up and Manage Price Lists
• Step 6: Determine Shipping Rates and Zones
• Step 7: Manage and Fulfill Orders
• Step 8: Optimize for Discovery

2 Ways to Become a Dropship Supplier on Shopify

Using Shopify Collective

Shopify Collective is a Shopify feature that helps suppliers who use dropshipping connect with stores that want to sell their products. It makes it easy for suppliers to put their products on the platform, make deals, and talk to merchants. Suppliers can show off what they have to offer, talk about what makes them special, and share stories of their success. This helps them find more stores to work with.

In this article, we focus on instructing you this way. 

Inviting Shopify Retailers to Connect with You

If you’re a supplier on other platforms, like Alibaba or Amazon and want to become a dropship supplier on Shopify, you can cooperate with Shopify retailers to import your products to their dropshipping store. 

To get started, you can reach out to Shopify retailers and let them know you’re interested in working with them. By connecting and building relationships with these retailers, you can help each other grow your businesses and succeed in the world of e-commerce.

Is Shopify Collective for Dropshipping Suppliers?

Absolutely! Shopify Collective is a comprehensive ecosystem designed for everyone involved in the e-commerce chain, including dropshipping suppliers. 

8 Steps to Become A Dropship Supplier On Shopify Using Shopify Collective 

Step 1: Understand the Requirements and Considerations

1.1. Requirements for Using the Shopify Collective Sales Channel

There are some requirements for Using the Shopify Collective Sales Channel:

• Location of Business: Your business must be based in the United States to qualify for using the Shopify Collective sales channel.
• Store Currency: The primary currency for transactions in your store should be the United States Dollar (USD).
• Payment Method: You must have Shopify Payments activated within your store. This ensures seamless and consistent transactions between you and the retailers.
• Sales Benchmark: Your store should have achieved a minimum of 50,000 USD in sales over the past 12 months. This benchmark establishes credibility and assures potential retailers of your business’s stability and performance.
• Canadian Exception: If your business is based in Canada, there’s a specific scenario in which you can join the Shopify Collective. You need to be directly invited by a retailer who is already using the Shopify Collective platform, is based in Canada, and whose primary store currency is Canadian Dollar (CAD).

1.2. Considerations for Using the Shopify Collective Sales Channel

• Product Restrictions: The Shopify Collective platform has certain product limitations. Specifically, it does not support the listing and sale of digital products, gift card products, or high-volume product drops. This means your product offerings should exclude these categories.

• Tax Considerations for Canadian Suppliers: If both your business and your retailer are based in Canada, there’s a crucial tax dynamic you should understand:

Typically, the retailer will be responsible for collecting taxes from the end customers.

You, as the supplier, will then collect taxes from the retailer.

To facilitate this, you can create a separate price list specifically for retailers based in Canada, adjusting prices to account for taxes.

• Tax Consultation: It’s imperative to get the tax dynamics right to prevent potential legal and financial pitfalls. To ensure you’re charging appropriate tax rates and adhering to local tax regulations, it’s advisable to consult with local tax authorities or enlist the services of a tax professional.

Step 2: Install the Shopify Collective Sales Channel

Here are the steps to install Shopify Collective Sales Channel:

1. Access the Invitation: Begin by accessing the invitation email sent by Shopify Collective. Within this email, you’ll find a prominent button or link labeled “Install Shopify Collective.” Click on it.
2. Login to Shopify: You’ll be redirected to a login page (if not already logged in). Enter your Shopify account credentials to proceed.
3. Select the Right Store (Optional): If you operate multiple Shopify stores, a list will appear. From this list, select the specific store where you want the Shopify Collective sales channel to be installed.
4. Finalize Installation: After selecting the desired store, you’ll find an option labeled “Add sales channel.” Click on it to finalize the installation.

Once installed, the Shopify Collective sales channel will appear in your Shopify dashboard, allowing you to begin the journey of listing products, setting prices, and connecting with potential retailers. Ensure you optimize your listings and offerings to attract the best retailers and maximize your sales potential.

Step 3: Invite Retailers to Connect

Here’s a detailed guide on inviting retailers and managing these connections.

3.1. Connecting with Retailers

Retailers are at the core of your dropshipping success. You can invite those using Shopify to start selling your products. Once they accept your invitation, you’ll be notified via email. It’s a two-way street; retailers already on Shopify Collective can also invite you if they have your contact details.

3.2. Requirements for Inviting Retailers

Before inviting a retailer, ensure they meet the following criteria:

• They must have an active Shopify store.
• Shopify Payments should be activated in their store.
• Their business must be based in the United States.
• The store’s transaction currency should be USD.
• They should have garnered sales of at least 50,000 USD over the past 12 months.

3.3. How to Invite a Retailer to Connect

To invite a Retailer to Connect, you can follow these simple steps below:

1. Access Collective: From your Shopify admin, navigate to Settings > Apps and sales channels > Collective (Supplier) and click “Open sales channel.”
2. Send Invitation: Once inside the Collective (Supplier) sales channel, select “Retailers.” Then click on “Invite retailer.”
3. Enter Retailer’s Details: Fill in the retailer’s contact information including their first and last name, along with their email address.
4. Personal Touch: Optionally, you can add a note to be displayed in the invitation email, adding a personal touch or specific details about your collaboration.
5. Finalize: Click “Send” to dispatch the invitation.

3.4. Reviewing Invitations from Retailers

Retailers can also reach out to you. Here’s how to manage these incoming invitations:

1. Access Collective: In your Shopify admin, go to Settings > Apps and sales channels > Collective (Supplier) and select “Open sales channel.”
2. Review Invites: Inside the Collective (Supplier) sales channel, choose “Retailers” and navigate to the “To review” tab.
3. Manage Invitations: Here, you can:

→ Accept the invitation by clicking “Accept invitation.”

→ Decline the invite by selecting “More actions” and then “Decline invitation.”

→ Communicate with the retailer by opting for “More actions” and then “Email retailer.“

3.5. Monitoring Your Connections

Post connection, it’s essential to manage and assess the performance of these partnerships:

• View Connections: Inside the Collective (Supplier) sales channel (accessible from Settings > Apps and sales channels), click on “Retailers” and move to the “Connected” tab.
• Analyze Data: Here, you can see: Status of automatic payments; Date since connection was established; Total order count, average order value, and total sales.
• Deep Dive: By selecting a specific connection, you can view: Total number of price lists shared; Detailed sales data including total orders, average order value, and comprehensive sales.

Step 4: Get Paid on Shopify Collective

4.1. Understanding the Money Flow

When a customer places an order on your retailer’s platform, the retailer pockets the full order amount. However, given the cost price and shipping rates you’ve set, the retailer owes you a chunk of this amount. How this sum gets transferred depends on your payment arrangements with the retailer:

• Automatic Payments: If both you and your retailer have automatic payments activated, the owed amount will be auto-debited from the retailer’s Shopify Payments account (provided there’s enough balance) and transferred to your Shopify Payments account.

• Manual Payments: Without automatic payments in Shopify Collective, both parties must agree on an alternate payment method – be it invoicing or direct bank transfers.

4.2. Shopify Collective Automatic Payments

Shopify Collective’s automatic payment system is a blessing for those who prefer hassle-free transactions. When it’s activated:

• Money owed is auto-debited from the retailer’s Shopify Payments account once an order involving Shopify Collective products is placed.
• After order fulfillment, this amount gets transferred to your Shopify Payments account, given there’s sufficient balance on the retailer’s end.
• Best part is that there are no extra fees with automatic payments!

4.3. Checking Automatic Payment Activation

To check Automatic Payment Activation, you can follow these steps:

• Navigate: Shopify admin > Settings > Apps and sales channels > Collective (Supplier) > Open app > Payments.
• In the “Get paid automatically” section, ensure automatic payments are toggled on.
• You can also verify which retailers use automatic payments under Retailers > Connected.

4.4. Eligibility for Automatic Payments

To avail automatic payments, certain criteria must be met:

• Both stores should be in the US or Canada.
• Store currencies for both must be either USD or CAD.
• Both should have matching Shopify Payments payout currencies.
• Automatic payments must be turned on for both.

4.5. Decoding Order Payment Status

Depending on your payment method and the flow of money, order payment statuses can differ:

• Payment Pending: Money hasn’t been debited from the retailer’s account.
• Authorized: Money debited from the retailer and awaits transfer to your account after order fulfillment.
• Paid: Funds transferred to your account.

Note: Manually marking an order as paid will change its status to “Paid,” but it won’t result in an actual transfer. Funds only move once the order is fulfilled.

4.6. Viewing Your Shopify Collective Payments

Keep tabs on your payments using the Shopify Collective sales channel:

• Navigate: Shopify admin > Settings > Apps and sales channels > Collective (Supplier) > Open app > Payments.
• Here, you can view essential details like payment date, order number, retailer details, payment status, and the transferred amount.

Step 5: Set Up and Manage Price Lists

5.1. Price List Details

Creation and Primary Attributes

When you establish a price list on Shopify Collective:

• Add Products: Populate the list with desired items.
• Assign Retailer Access: Decide which retailers have permission to view and use this specific list.
• Determine Retailer Margins: This percentage establishes the revenue share between you (the supplier) and the retailer.
• List Status Management: Two main states exist – Active and Draft. ‘Active’ means available to retailers, while ‘Draft’ makes it inaccessible.

Product Information Sharing

The synergy between supplier and retailer is strengthened by the sharing of product data and inventory stats. Importantly:

• Retailers can customize the shared product details in their stores, but they cannot alter the product price.
• Only the retail price set by the supplier in the price list is permissible for listing by the retailer.

Transferred Product Information

• Price
• Inventory count
• Product title
• Images associated with the product
• Detailed product description
• Variants available
• Vendor (you, the supplier)
• Classification of product type
• Cost price (derived after considering retailer margins)

Excluded Product Information

• SKU (Stock Keeping Unit)
• Collections in which the product is placed
• Tags associated with the product
• Barcode details
• Country or region of origin
• HS (Harmonized System) code
• Compare-at price
• Any active product discounts

Product Info and Inventory Sync Mechanics

Upon the import of your product specifics to a retailer’s platform, Shopify Collective engages in ongoing synchronization for product price, cost price, and stock levels. Noteworthy points include:

• Automatic stock updating in your shop when a customer makes a purchase through a retailer.
• Typical syncing takes under 30 seconds, but can extend to five minutes. During high-traffic sales, this delay may result in overselling.
• For non-automatic syncing attributes, like images or variants, the solution is to remove the product from the price list and then reintroduce it.

Caution: Modifying a product’s inventory location can disrupt the synchronization of inventory and orders.

Handling Out-of-Stock Products

If a product runs out of stock but you’ve enabled “Continue selling when out of stock“, retailers still have the green light to offer the item. This necessitates:

• Manually alerting retailers about out-of-stock situations.
• Conveying probable restocking dates.

Remember, retailers don’t have the authority to deactivate the “Continue selling when out of stock” setting in their system.

Deciphering Cost Price

The retailer margin you set during price list creation affects all included products. An illustrative example: For a product valued at $100 and a retailer margin set at 30%, the retailer retains $30 from each sale, transferring $70 to you. When retailers integrate your product, the system displays this $70 as the cost per item.

Notably, retailers are restricted from editing the retail or cost prices you designate. Adjustments on your end auto-recalculate and update in the retailer’s interface.

Although you can craft endless price lists, each one mandates a universal retailer margin. Individual cost prices for products within a single list are currently unsupported.

Retailer Access and Price List Status

After establishing a connection with a retailer via Shopify Collective:

• Grant or Revoke Access: You can assign specific price lists to retailers or revoke previously given permissions.
• Understand Statuses:

Active: Products within are up for grabs for the retailers granted access.

Draft: Neither the list nor the products within are accessible.

Selecting ‘Active’ triggers an email to assigned retailers, notifying them of available products. The import and selling processes on their part can commence instantaneously.

Mastering price lists on Shopify Collective not only enhances product visibility but also optimizes revenue sharing between suppliers and retailers. Regular updates and clear communication are pivotal to this endeavor.

5.2. Create a price list on Shopify Collective

Creating a price list on Shopify Collective is an integral part of facilitating your dealings with retailers. It allows you to define the products you offer, set the margins, and decide which retailers can access these prices. Here’s a step-by-step breakdown to ensure you create a price list accurately:

Access the Apps and Sales Channels

• Start by logging into your Shopify admin.
• Navigate to the Settings option on the dashboard.
• From the dropdown, select Apps and Sales Channels.

Head to the Collective (Supplier) Sales Channel

• On the ‘Apps and sales channels‘ page, you will see various apps and channels listed.
• Locate Collective (Supplier) and click on it.
• You will see an option that says Open sales channel. Click on it to proceed.

Initiate a New Price List

• Within the Collective (Supplier) sales channel, you will find the Price lists option on the sidebar. Click on it.
• Next, select Create price list. This will lead you to a new window where you can input details for your new price list.

Name Your Price List

Now, under the Title section, provide a unique name for your price list. It’s worth noting that this name is for your internal reference and will not be visible to retailers.

Populate Your Price List with Products

• Click the Add products button.
• A new window will display showcasing your product inventory. Here, you can select the products you wish to include in this particular price list.
• Once you’ve made your selections, click Done to confirm.

Set the Retailer Margin

• Move down to the Retailer margin section.
• Here, input the percentage deduction that you want to apply across all products in this price list. This will be the retailer’s profit margin and will be deducted from the retail price.

Assign Retailer Access to the Price List

• Navigate to the Retailer access section.
• Click on Assign access.
• A window will pop up, presenting a list of retailers connected with you on Shopify Collective.
• Select the retailers you want to provide access to this price list.
• Confirm by clicking Assign retailers.

Choosing the Price List Status

In the Status section, you’ll find two options: Active and Draft.

• Active: Choosing this means that the products within the price list are immediately available to the retailers you’ve granted access to.
• Draft: This option makes the price list (and its products) unavailable to all retailers.

Finalizing the Price List

After ensuring all details are accurate, click Save. Your price list is now created and stored in Shopify Collective.

5.3. Add or Remove Products from Your Price List

Managing your product offerings is vital to ensure that your retailers have access to the latest products and accurate inventory levels. By adding or removing products from your price lists on Shopify Collective, you can keep your product offerings up-to-date. Here’s how you can effectively manage the products in your price list:

Accessing the Apps and Sales Channels

• First, log in to your Shopify admin dashboard.
• Then, click on the Settings option.
• From the dropdown menu, select Apps and sales channels.

Navigating to the Collective (Supplier) Sales Channel

• In the displayed list on the ‘Apps and sales channels‘ page, find and click on Collective (Supplier).
• Now, click the Open sales channel button.

Accessing Your Price Lists

• On the sidebar of the Collective (Supplier) sales channel interface, click on the Price lists option.
• This will display all your created price lists. Choose the specific price list you wish to manage by clicking on its title.

Managing Products in the Selected Price List

To Add Products:

• Scroll to the Products section.
• Click on the Add products button. A window showcasing your entire product inventory will pop up.
• Browse and select the products you want to add to your price list.
• Once satisfied with your selection, click Done to finalize.

To Remove Products:

• Still, in the Products section, identify the products you wish to remove from the price list.
• Click on the checkbox next to each product you want to remove.
• After selecting them, click the Remove products button.
• A prompt might appear, asking for confirmation. Approve the removal process.

Saving Changes

• After making your desired changes, click on the Save button to store these updates.
• If you’ve removed products from an active price list, a special prompt might appear. In this case, select Save and remove. This ensures that the inventory of the removed products is set to zero in your retailers’ stores, avoiding potential overselling.

Caution:

When products are removed from an active price list, it’s imperative to understand that their inventory will be set to zero in the retailer’s store. It prevents the retailers from selling products that are no longer available in your list.

5.4. Manage Access to Your Price List

Managing access to your price lists ensures that only the appropriate retailers have access to specific products. Moreover, it offers an effective way of maintaining clear communication channels and good business relationships with your retailers. Here’s a step-by-step guide to help you oversee the access to your price lists on Shopify Collective:

Accessing the Apps and Sales Channels

• Begin by logging into your Shopify admin dashboard.
• Then, click on Settings.
• Select Apps and sales channels from the dropdown.

Navigating to the Collective (Supplier) Sales Channel

• On the ‘Apps and sales channels‘ page, find and select Collective (Supplier).
• Click on the Open sales channel button.

Accessing Your Price Lists

• Within the Collective (Supplier) sales channel interface, locate and click on Price lists from the sidebar.
• This action will display a list of your created price lists. To manage access, select the price list of your choice by clicking on its title.

Assigning or Removing Retailer Access

To Assign Retailer Access:

• Scroll to the Retailer access section.
• Click on Manage access, then select Assign access.
• A window will pop up, listing all the retailers. Choose the retailer(s) you wish to grant access to the specific price list.
• Once done, click on Assign retailer.

To Remove Retailer Access:

• In the Retailer access section, click on Manage access, then select Remove access.
• A list of retailers with access will appear. Choose the retailer(s) whose access you want to revoke.
• After selecting, click on Remove retailer.

Saving Changes

• After modifying the retailer access, always remember to click on the Save button to apply the changes.

Important Considerations

• Notification to Retailers: If a retailer’s access to a price list is removed, an automated email will be sent to them. This email will inform them that specific products from that price list are no longer available for sale in their store. 

Consequently, inventory levels for any products from that price list that had been imported into their store will be set to zero.

• Transparent Communication: The automated email doesn’t specify why the products are now unavailable. To maintain transparency and foster a strong business relationship, it’s advisable to personally reach out to the retailer. 

Before revoking access, let them know the rationale behind the decision. This open communication can prevent potential misunderstandings or grievances.

5.5. Deactivate Your Price List

In the course of business operations, there might be times when you’d want to temporarily halt the use of a specific price list. Shopify Collective offers an intuitive way to deactivate a price list without deleting it. By setting its status to ‘Draft’, the price list becomes inaccessible to all assigned retailers. Here’s how you can swiftly deactivate your price list:

Accessing the Apps and Sales Channels

• Begin by logging into your Shopify admin dashboard.
• Navigate to Settings.
• Choose Apps and sales channels from the dropdown menu.

Navigating to the Collective (Supplier) Sales Channel

• From the ‘Apps and sales channels‘ page, locate and click on Collective (Supplier).
• Now, tap on the Open sales channel option.

Accessing Your Price Lists

• Within the Collective (Supplier) sales channel dashboard, select Price lists from the sidebar.
• You will be presented with a list of your created price lists. Click on the title of the price list you wish to deactivate.

Deactivating the Price List

• Scroll down to the Status section.
• Here, select the Draft status option.
• To finalize and save your changes, click Save. A new prompt will appear — click Save as draft.

Keys:

• Retaining Data: Deactivating a price list by setting it to ‘Draft’ doesn’t erase it. This action simply makes the price list temporarily unavailable to all assigned retailers. This feature provides flexibility, allowing you to bring the price list back into active status whenever you’re ready.
• Quick Re-activation: If at any point in the future you decide to use the same price list again, all you need to do is access the specific price list and change its status back to ‘Active’. Your previous settings and retailer assignments remain intact, ensuring a seamless re-activation process.

5.6. Delete Your Price List

In the event that you find a particular price list obsolete or redundant, Shopify Collective provides a straightforward process to delete it. Remember, deleting a price list is a permanent action, and the list cannot be retrieved once eliminated. It’s also worth noting that if your price list is set to ‘Active’, you’ll need to transition it to ‘Draft’ status before proceeding with the deletion. Here’s a step-by-step guide to delete your price list:

Accessing the Apps and Sales Channels

• Log in to your Shopify admin dashboard.
• Navigate to the Settings section.
• From the dropdown, select Apps and sales channels.

Navigate to the Collective (Supplier) Sales Channel

• Within the ‘Apps and sales channels‘ interface, identify and select Collective (Supplier).
• Subsequently, tap the Open sales channel button.

Dive into Your Price Lists

• In the Collective (Supplier) sales channel interface, find the Price lists option in the sidebar and select it.
• A comprehensive list of your existing price lists will be displayed. Identify and select the price list you wish to delete.

Prepare Your Price List for Deletion

Note: If your price list is set to ‘Active’, it must first be made inactive. To do this:

• Navigate to the Status section of the price list.
• Choose the Draft status option.
• Confirm this status change by clicking Save.

Permanently Delete the Price List

• Find the Delete price list option, typically located at the bottom or top of the page.
• Click it. A prompt will appear asking you to confirm the deletion.
• Confirm the action by clicking Delete price list again.

Key Considerations

• Irreversible Action: The action of deleting a price list is permanent. Ensure that the specific price list is no longer required before proceeding with deletion.
• Draft Status First: An ‘Active’ price list cannot be directly deleted. It must first be deactivated by changing its status to ‘Draft’.

Step 6: Determine Shipping Rates and Zones

Managing shipping rates is crucial for a seamless shopping experience. On Shopify Collective, it becomes even more vital, considering the collaboration between suppliers and retailers. Here’s how you should proceed:

6.1. Considerations Before Setting Up Shipping Rates

Before you dive into the technicalities, it’s essential to understand some critical points:

• Payment Management: If you’ve opted out of Shopify Collective’s automatic payments, it’s vital that both you and the retailer align on how you’ll manage the shipping cost payments. This could involve mechanisms external to Shopify, like sending an invoice or facilitating a direct bank transfer.
• Custom Shipping Profile: For retailers who integrated the Shopify Collective app post-April 3, 2023, a distinct shipping profile gets established in their dashboard upon their initial product import. This profile mirrors your shipping rates on Shopify Collective. It’s crucial to note that there’s no real-time sync between these rates. However, retailers do get email notifications if you modify these rates.
• Shipping Rates At Checkout: The shipping rate chosen by the retailer’s customer during checkout remains undisclosed to you.

6.2. Configuration of Shipping Rates and Zones

These rates will be consistent for all retailers associated with you on Shopify Collective.

Accessing the Apps and Sales Channels

• Navigate to your Shopify admin.
• Select Settings, then opt for Apps and sales channels.

Accessing the Collective (Supplier) Sales Channel

• From the ‘Apps and sales channels‘ page, find and click Collective (Supplier).
• Next, click Open sales channel.

Delving into the Shipping Settings

Inside the Collective (Supplier) sales channel, locate and click on Settings.

Setting Up Shipping Zones and Rates

• Under the Shipping zones and rates section, click Edit beside the desired shipping zone you want to adjust.

Depending on your preference and strategy, pick one of the subsequent options:

• Flat Shipping Rate: Opt for Apply a flat rate (recommended). Subsequently, input the desired shipping rate.
• External Shipping Cost Management: If you wish to manage the shipping cost outside of Shopify Collective, select Recover shipping costs independently of Collective. You’ll also need to provide a reason for this preference.
• No Shipping: If you don’t cater to this zone, then simply click on I don’t ship to this zone.

After selecting the appropriate option, click Save to finalize your settings.

6.3. Available Shipping Zones

You can customize shipping rates for these zones:

• United States
• Canada
• Rest of the world

By understanding and implementing these nuances, suppliers can build a more transparent and efficient relationship with retailers on Shopify Collective, ensuring that customers get the best shopping experience. Remember to continually review and update shipping rates to reflect any changes in your logistics or strategy.

Step 7: Manage and Fulfill Orders

7.1. Fulfill Orders

Handling and processing Shopify Collective orders doesn’t deviate much from your typical Shopify orders, with a few key differences to note:

• Standard Fulfillment Process: Shopify Collective orders can be processed similarly to other orders on your Shopify admin. 
• Maintaining Business Relationships: Communication is crucial. Consider informing your retailers of the estimated order processing time, for instance, indicating that it might take “2 business days.”
• Shipping Confirmation: An important distinction is that, when a Shopify Collective order gets fulfilled, the shipping confirmation email is dispatched from the retailer’s store, not yours.
• Editing and Refunds Limitations: You cannot edit or process refunds for Shopify Collective orders directly. If changes or refunds are required, you’d need to cancel the existing order. Then, request the retailer to place a new order reflecting the modifications.

Tips and Additional Features:

• Shopify Shipping: If you’re looking for an integrated shipping solution, remember that you can utilize Shopify Shipping to purchase shipping labels specifically tailored for your Shopify Collective orders.

7.2. Manage Orders

Effectively managing returns, refunds, and cancellations of Shopify Collective orders is pivotal in sustaining a robust relationship with your retailers. Here’s a comprehensive guide detailing these aspects.

Managing Returns for Shopify Collective Orders

Preliminary Agreements

Before initiating any returns, liaise with your retailers about the return protocol, especially concerning the responsibility of return shipping costs.

Available Return Methods:

• Method 1: The retailer self-creates a return label and receives returns at their premises.
• Method 2: You provide the retailer with a return label, and you accept returns at your location.

If both parties opt for Method 2, uploading a return label and instituting a return in your Shopify admin becomes essential.

Caution: The expense of the return label isn’t covered in your automatic payments. You’re obliged to manage the return label costs with your retailer externally from Shopify Collective.

Return Request Procedure

When a retailer requests a return via their Shopify admin, you’ll be alerted via email. Upon scrutinizing the return request and deeming it valid, the subsequent step is to provide a return label. The retailer will then get an email containing this label, facilitating them to create a return for their customer.

Steps:

• Navigate to Orders within your Shopify admin.
• Identify and click on the pertinent order you wish to process a return for.
• Click Return.

Within the Return shipping options, you can:

• Create a return label in Shopify: If both your base location and the customer’s shipping address are within the U.S.
• Upload a return label: To insert an existing return shipping label. Here, you can upload a PDF or JPEG of the label and optionally insert the tracking number and shipping carrier.
• Conclude by clicking Create return.

Post inspection of returned items, you can designate your order as returned. This sends an email notification to your retailer regarding the returned merchandise.

Refunding Shopify Collective Orders

Prior agreements with your retailer on refund management are crucial:

• With automatic payments activated on both ends, initiating a refund leads to an automatic transfer to the retailer.
• Without automatic payments, directly send funds to your retailer and notify them about the transaction.
• You can execute refunds on Shopify Collective orders in a manner akin to your usual orders. For an elaborate guide, consider referencing Creating returns and refunds.

Canceling Shopify Collective Orders

Retailers can request the cancellation of unfulfilled Shopify Collective orders. Following this request, an email prompts you to review and possibly cancel the order. However, if you’ve already acted upon the order, you might decide against canceling.

• Cancellation of Shopify Collective orders mirrors the process for other orders in your Shopify admin. For more clarity, refer to Canceling, archiving, and deleting orders.
• On canceling an order, its status in the retailer’s store becomes Request declined, showcasing your chosen reason for cancellation. The retailer then needs to cancel the order in their shop to process a customer refund.

In all these processes, open communication and transparency with retailers are fundamental to maintaining trust and ensuring a seamless collaboration on the Shopify Collective platform.

Step 8: Optimize for Discovery

The discovery feature on Shopify Collective is a game-changer, as it allows suppliers to be easily discovered by retailers. To fully harness this feature, it’s essential to understand the requirements and the activation process. Here’s a comprehensive breakdown.

8.1. Requirements for Utilizing the Discovery Feature

To tap into the potential of the Shopify Collective discovery feature, suppliers must satisfy the following criteria:

• Shop Sales Channel Installation: Your store must have the Shop sales channel installed.
• Adherence to Guidelines: Your store must align with the Shop Merchant Guidelines.
• Sales Threshold: Over the past year, your store should have accrued at least 50,000 USD in sales.
• Active Engagement: Maintain a high response rate to retailer invitations you receive. This demonstrates your store’s commitment and reliability.

8.2. Activating the Discovery Feature

When eligible, your store becomes discoverable by retailers on Shopify Collective. This potent feature is auto-activated for qualifying suppliers. With the feature activated, retailers gain access to view your supplier profile, including your brand assets. They can also extend an email invitation to initiate collaboration on Shopify Collective.

Here’s a detailed guide on how to check and activate the discovery feature:

• Navigate to your Shopify admin, then click on Settings > Apps and sales channels.
• On the Apps and sales channels page, locate and click on Collective (Supplier).
• Opt to Open sales channel.
• Within the Collective (Supplier) sales channel, proceed to Settings.
• Locate the Discovery section. If the feature isn’t already active, click Turn on.
• Optional: To stay updated and be in the loop, enable the Receive invitations from retailers option. It’s recommended to activate this setting so that you can promptly act on any collaboration requests.

By optimizing your store for discovery, you amplify its visibility among retailers on Shopify Collective. This can pave the way for more collaborative opportunities, expanding your brand’s reach and potentially boosting sales. Always ensure regular checks and updates to make the most of the discovery feature.

FAQs: How To Become A Dropship Supplier On Shopify

What is the Shopify Collective discovery feature and why is it important?

The Shopify Collective discovery feature allows suppliers to be easily discovered by retailers. Eligible suppliers can have their profiles, along with their brand assets, viewed by retailers. This facilitates potential collaborations, expanding a supplier’s reach and increasing opportunities for sales.

How can I manage returns for Shopify Collective orders?

Before processing any returns, it’s essential to agree with retailers on handling methods and return shipping costs. Two primary methods are:

• The retailer independently creates and pays for the return label, accepting returns at their location.
• You provide a return label and accept returns at your location. Remember, if you choose this method, return label costs aren’t included in your automatic payouts.

Can I edit or refund Shopify Collective orders directly?

No, Shopify Collective orders cannot be edited. To refund, both you and the retailer must activate automatic payments. If not, funds must be sent outside of Shopify Collective. Orders need to be canceled and re-placed if any changes are required. When canceling, the retailer has to finalize the cancellation on their end.

Conclusion

In conclusion, understanding how to become a Dropship Supplier on Shopify is crucial for maximizing business opportunities, streamlining processes, and fostering beneficial retailer relationships.