Dropship

Automating Vendor Payments and Commission Rates

Keeping on top of your vendor payments can easily become a headache when you’re running a successful multi-vendor marketplace. The solution? Automate your payments!

Last updated July 9th, 2020

Jetti can fully automate your payment workflow for dropship stores and multi-vendor marketplaces.

Decide on your commission structure

Jetti can support a range of complex commission structures if needed. This can be configured per vendor as well, in situations where you have different negotiated rates across vendors. As a first set, you'll need to set these commission rates within Jetti. Simply select the dropship provider and navigate to Prices > Cost Prices. There you can select the type of commission rate, as well as specify the exact percentage or fixed amount.

Note: Commission rates do not sync to Shopify, only if you set a specific cost price. Cost price is dependant on the price the item is sold for, including discounts. You can set the cost price under the Shipping-tab.

Get in touch with us if you have more complex requirements. We can use our landed costs feature to add fees on top of any percentage set to cover things like handling or processing feeds.

Payment alerts Jetti will send you an email alert every time an invoice is raised and no cost price or commission rate is set. This means you can always keep on top of your vendor payments and ensure no orders are skipped.

You can disable these alerts if needed. For example, you may be handling your vendor commissions in another platform outside of Jetti. Simply select Disable invoicing alerts under the cost prices section and you'll no longer receive alerts for that vendor.

Using price lists

If you are not using commission rates, you can use Jetti to maintain the cost prices for your items. If you only have a few items to maintain cost prices for, you might want to just update the cost price under the settings page for the variant or right on the variant list.

Updating cost prices in bulk If you have more items, you can use a CSV import / export to update items in bulk. This is usually needed for in-house items, or if you didn't want to set up an inventory feed. You can also update other fields, such the vendor SKU, weight.

  1. From your inventory list, click the Cost Price button. You might want to filter the list by vendor or any other filter if you only want to upload cost prices for a particular set of products.
  2. In the popup, click Export cost prices. This will email you a list of the current SKUs and cost prices. It might take a minute to arrive.
  3. Edit the CSV file, changing the cost prices for any items. Once you're done, save the CSV file and upload.

Payment methods

Jetti provides different methods for paying your vendors. You can turn on / off the payments methods from Setup > Payment methods. When you first start using Jetti, some methods are created already for you. Just remove the ones you don't want and add any which are missing.

When adding a payment method, click on New Payment Method and add the Name and Source. This will be shown when either you (via your merchant dashboard) or your vendor (via the dropship portal) select the payment method.

Automated payments

Invoicing vendors is fully automated. They are raised as items are shipped and the payment due will be visible in the payment report. This is automated and you'll be notified if anything goes wrong (e.g. if you sell an item for a vendor but didn't set a commission rate.

You can settle payments automatically if you use Stripe of Transferwise. To do this, scroll down to Automating Dropship Vendor Payments under the Prices tab, and select "Stripe/Transferwise Only". You will have an option to schedule automated payments daily, weekly, or monthly. You can also choose to delay a payment if needed by editing the "Pay after returns period" tab.

Note: Be aware that there will be two separate transactions happening. One is the payment for customer that happens thorough Shopify (Jetti has nothing to do with this transaction and the payment processing fee). The second is the payment to vendors from the selected account (e.g. Stripe) that will include the payment account fees as well.

PayPal (partially automated)

You can also batch pay vendors via Pay. This isn't fully automated like Stripe. Instead, you'll need to batch export the payments from Jetti into PayPal. You can read more about getting started with PayPal for more details.

Other payment methods (manual)

All other payment methods are handled manually via the payment report in Jetti. For example, you can add a payment method for "cheque". Your vendors can then select this and use the form to enter additional details you might need.

Invoices will still be raised automatically so you can track payments. You'll need to make the actual payment manually via cheque for example, and then mark the payments as complete in Jetti. The payment report will help with this. You can use the references field to ensure you can reconcile payments later with your external system.

FAQs

What if my customers use a discount code?

You can choose whether you would like to incorporate discounts into the payout amount. To do this, navigate to the prices tab, there is a checkbox for toggling whether to incorporate discounts.

Last updated July 9th, 2020

How can I delay payments to my vendors?

You can delay payments to vendors by adding the number of days for the delay in the settings under the Prices - tab. In case you need to send a payment early, you can disable this setting.

Last updated July 9th, 2020

What is the difference between commission rates and cost prices?

Commission rates are used when you want to retain a percentage of the customer price and pay the vendor the retainer. In this model, you don't need to know the cost price of the item. If you don't use commission rates, you'll instead need to know the cost price of the item. This will be the amount you pay your vendor.

Last updated July 9th, 2020

How can I make a manual adjustment to an invoice?

You can make manual adjustments to invoices from the Payments report - Contact > Payments. Click the contact and scroll down to the invoices. You will see an Adjustments-column, if you click on one of them, you will have a pop up where you can add the adjustment.

Last updated July 9th, 2020

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