Setting up payout methods for sellers

In this article, we’ll cover the payout methods that you can offer to your sellers when their listing has been successfully sold and delivered to the buyer. You can offer store credit (best strategy to retain your customers!) and/or cash payout for your sellers to choose from.

To allow cash payout for your sellers, you will be required to connect your credit card details to the app so that we can help facilitate the payment through our payment provider to your sellers.

In order for sellers to receive their first cash payout, they are required to complete a one-time KYC process for our payment provider to verify their identification documents and bank account. Once validated, sellers will be able to receive their cash payout via their nominated bank account.

If a seller chooses to redeem their payment in cash, they will receive a payout of 70% of their final selling price.

Store credit is the best payout method to retain your customers. Instead of receiving a 70% cash payout, sellers can choose to redeem 100% of their payment in store credit so that they can continue shopping for new products on your store. This is a great strategy to unlock new revenue stream for your brand because these customers are more likely to spend more than their allotted store credit!

To allow store credit payout for your sellers, you can choose to set them up via a Shopify gift card or discount code.

Once the item has been successfully sold and delivered to the buyer, the seller will receive a Shopify gift card sent to their email address. Any unused balance can be carried forward for their next purchase. You may also specify the validity period of the gift card.

Once the item has been successfully sold and delivered to the buyer, the seller will receive a discount code sent to their email address. Any unused balance cannot be carried forward for their next purchase. You may also specify the validity period of the discount code and set up a discount code prefix to differentiate it from the rest of the discount codes set up in your Shopify store.

You may choose to offer extra incentives on store credit to encourage your customers to opt for store credit payout over cash. With Bonus Store Credit enabled, sellers will be able to see the extra credit amount on their resale order when they choose to redeem their payout in store credit.

You can offer bonus store credit based on a fixed percentage of your resale order. For example, if you were to set a 10% bonus store credit for a successfully sold resale order worth $100, customers will receive an extra $10 on their store credit, leaving them with a total of $110.

If you wish to the cap the amount of bonus credit to minimize your exposure, you can set up a a maximum bonus credit per resale order. Say you have capped the bonus credit to $20 and customer sold $500 worth of resale order, they will only receive a maximum bonus store credit of $20 instead of $50, leaving them with a total of $520.

Aside from a fixed percentage, you could also set the bonus store credit based on a fixed dollar amount. If you were to set the bonus store credit at $10, customers will receive an extra $10 on top of their resale order. For example, if customer sold $100 worth of resale order, they will receive a total store credit of $110.

Note: This fixed amount has to be set in your shop’s default currency.