Adding a vendor that will drop ship. How does that work and how do they get paid?

New Member
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Hi all! Newbie here...we want to add another vendor to our store. We are a nonprofit that has a fulfillment warehouse for our merchandise but now want to add a vendor to our account that will drop ship from their location upon some sort of notification from Shopify. Can we connect our stores so that our buyers can see the inventory of this item to ensure it is available? And if buyers add an items from the drop shipper to their cart and an item from our warehouse to their cart what does that look like from the shipping side? Two charges? How does the vendor get paid once the item is purchased? Thank you! 

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New Member
3 0 0

Some apps will let you connect your Shopify store to them to automatically fulfill orders. Each app is different. For example. if you wanted to create and print custom t-shirts, Printful is a service that allows you to connect your store and design custom t-shirts, hoodies, and more. Printful gives you the base price needed to create and ship the item, and you add to that price according to how much you would like to profit. Every product is synced with their service, so whenever a new order comes in, it is automatically fulfilled by Printful (printed and shipped to the buyer). Usually in most cases, the supplier is paid via a source of payment (ex: credit/debit card) that you attach to your account on their site. After every order, your card is usually charged with the cost needed to fulfill the order. This is usually okay, as you are later compensated via Shopify Payouts.

 

However, this is just one example of a service you can use and connect to your Shopify store to. Your question is about fulfillment warehouses, so I recommend doing research to find which service is fit for whatever it is you would like to sell as again, every service is different. Hope this helps!

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Shopify Staff
Shopify Staff
85 9 13

Hi @JanaW,

 

Welcome to Shopify! Thank you for reaching out and for asking your question.

 

You can have multiple fulfilment options on a single store by adding a fulfillment service in your Shipping settings. When you do this, you'll just need to add a contact email address for the new fulfillment option you are adding to the store, and then in the product editor you can mark the product as being fulfilled by this new option. This then means that an email notification will be sent to the email address you've entered in during the fulfillment of the order, notifying the warehouse. This doesn't affect the customer's experience on the checkout and is only visible on the backend.

 

I'll show you how this all looks in the Shopify admin. First of all, you'll see an option to add a new fulfillment service in Settings > Shipping:

 

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By clicking this, you'll then have the option to provide a name and email address for this fulfillment service:

 

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Once the fulfillment service has been added, you can go to a product's page in the backend and will be able to set the product to be fulfilled by this new service:

 

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I wanted to show you how this then looks when you actually receive an order, so I went ahead and placed an order on my test store for two products - one fulfilled by myself manually (bananas), and the other by the fulfillment service (apples):

 

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For the line item that is being fulfilled by a third party service, you will see there is a "Request fulfillment" option - clicking this will bring up this screen:

 

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From here you can add any tracking data and can also choose to send the shipment information to the customer. Once you hit "Fulfill items", an email will be sent to the email address you added for the fulfillment service earlier on. You can see what this email looks like by heading to Settings > Notifications and clicking on the "Fulfillment request" template. From here you will be able to edit and preview this template.

 

One option you could consider for this process is adding a staff account for the fulfilment service, which would allow them to access the Orders section of the admin and enter in tracking information and send the "request fulfillment" email themselves. This is entirely optional though, and would be only appropriate if you felt comfortable allowing them access to this part of your admin.

 

In terms of the shipping, the rates you set in the backend will apply to all products in the order, irrespective of how they are fulfilled or who by. You would want to speak with your vendor about shipping rates and what they'd be charging you, and then make accommodations in your shipping settings based on this information. One option might be to raise prices for products being shipped by the third party with the potential rise in shipping costs in mind. Any payments made to the third party fulfilment service will also need to be negotiated between you and them outside of Shopify, as all payments received from orders will be paid out to you regardless of who is fulfilling the items.

 

I hope this has helped explain things, but please let me know if you have any further questions!

 

Kind regards,

 

Victor | Shopify Social Care

 

 

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