Vendors are picked up from your product data as orders sync. Commission is calculated line by line using the rule you set (a percentage, or a fixed amount per item or per order), and each vendor’s unpaid balance stays up to date. When it’s time to pay, Send Invoice builds a numbered vendor payout with a PDF payout statement. You transfer the money however you normally do and record the payment in the app. It’s built for stores that sell other people’s products, such as marketplaces, consignment shops, multi-brand boutiques, and dropshippers, and it replaces the monthly spreadsheet.
Key takeaways
- Nothing to import. Vendors come from the Vendor field on your Shopify products.
- Three commission rule types: percentage (on net or gross sales), fixed per item, or fixed per order.
- Saving a rule never rewrites the past. New rates apply from their effective-from date.
- Payouts run daily, weekly, or monthly, with a minimum amount, a refund hold of up to 180 days, and optional manual approval.
- Send Invoice never moves money. It calculates, documents, and records. You pay.
How vendors get into Send Invoice
Every Shopify product has a Vendor field. As your orders sync, Send Invoice reads it and creates a vendor record the first time a new name appears, so there’s no list to upload or keep in sync. If you’ve signed a vendor who hasn’t sold anything yet, you can add them by hand.
The Vendors page opens with four figures: total vendors, commission-enabled vendors, sales, and commission payable. Below them, a table lists each vendor with their rule, their status, and an Unpaid column showing exactly what you owe them today.
How vendor commission is calculated
Set one default commission rule for the store, then give any vendor a custom rule if their deal is different. The vendor table labels each one Custom, Inherited, or No rule, so you can see at a glance who’s on which deal.
| Rule type | Calculated on | Typical use |
|---|---|---|
| Percentage | Net item sales (after discounts) or gross item sales | Marketplaces, consignment, multi-brand stores |
| Fixed per item | Each unit of the vendor’s product sold | Print-on-demand, maker platforms |
| Fixed per order | Each order that contains the vendor’s products | Dropship handling fees |
Two options apply to every rule:
- Deduct refunds. A refunded line stops earning commission.
- Effective from. A new rate starts on the date you agreed it.
Why history never changes
When you change a rule, the new rate applies from its effective date. Commission earned under the old deal stays the way it was, so a statement you sent a vendor in March still matches your records in September. When you give a vendor their own rule for the first time, Send Invoice goes back over that vendor’s earlier orders and applies it, so their history is complete from the start.
What each vendor’s page shows
Open a vendor to see:
- A transaction history listing every order line that earned commission.
- An order breakdown of sales, commission base, and commission per order.
- The unpaid balance, with a Pay now button and the vendor’s five most recent payouts.
- A printable vendor statement you can hand over or file.
The Summary tab totals every vendor over any date range and exports it as CSV for your bookkeeper.
How vendor payouts work
A vendor payout collects every commission a vendor has earned and not yet been paid, gives it a number
(PAYOUT-…), and produces a PDF payout statement listing each order and item it covers.
The three stages of a payout
- Draft: the payout is created and its figures are fixed.
- Approved: you’ve reviewed it, and the statement can go out.
- Paid: you record who paid, the payment date, and a reference such as a bank transfer ID.
A payout can also be voided. Its commission goes back into the unpaid pool and is included in a later payout. Each commission line is paid exactly once, so nothing is paid twice and nothing goes missing.
Pay now or on a payout schedule
Pay a vendor now creates a draft payout for one vendor, optionally limited to a period and with a note that prints on the statement. Nothing is sent until you approve it.
A payout schedule does the same thing automatically. You can set:
- Frequency: daily, weekly (choose the day), or monthly (choose a date up to the 28th, or Last day of the month), at a time in your store’s timezone.
- Applies to: every vendor, or one specific vendor.
- Minimum payout: below this amount no payout is created and the balance rolls into the next run, so you don’t end up sending tiny transfers.
- Refund hold: wait 0 to 180 days before commission becomes payable, so a late refund doesn’t leave you having overpaid.
- Only paid orders and/or only fulfilled orders.
- Auto-approve: approve and email statements automatically, or leave it off and review each payout first.
- Statement recipient: the vendor, only you, or a specific address, with your own subject line and message.
If a vendor has no email address on file, the statement is reported as failed. It is never skipped without telling you.
Adjustments and late refunds
To deduct damaged stock or correct an earlier payout, add an adjustment with an amount and a reason. It changes what’s payable on that payout, but never what the vendor earned.
If an order changes after a payout is created, for example because of a late refund, the payout keeps its original figures and flags the difference. You settle it on the next payout, so your records never quietly disagree with a statement you’ve already sent.
Why Send Invoice doesn’t move money
Send Invoice records vendor payouts but doesn’t send the money. You don’t need to connect payment accounts, and your vendors don’t need to sign up for anything. Pay by bank transfer, PayPal, or cheque, the same way you do now, then mark the payout paid. You keep full control of the money, and you get a proper record and statement for every payment.
Questions about setting it up? See Vendor commissions in the user guide, with answers to the most common ones.
Related: Shopify payouts · All Send Invoice features